Trade relations between Singapore and Australia are strong due to the geographical position of the two countries. For Australia, Singapore is the gateway towards China, the largest market in the world which is why various agreements have been signed between the two states during time.
Foreign investors who want to open companies in Southeast Asia or in a neighboring country, often struggle between Singapore and Australia, even if both countries have their own advantages. It should be noted though that Singapore is closer to Europe and considering most companies have strong business ties with European countries, the advantage seems to be on Singapore’s side. Below we will provide a comparison between the legislation and the company formation procedures in Singapore and Australia.
Company laws in Singapore and Australia presented by our Singapore company formation agents
Opening a company in Singapore and starting a business in Australia fall under the regulations of the Company Act, respectively the Corporations Act which provide for the conditions companies or businessmen must comply with upon the registration of a company.
Both laws provide for several types of companies which can be established, the Singapore Company Act was amended in 2015 providing for more modern requirements and even for several facilities for foreign investors, while the Australian Corporations Act remained unchanged since 2001.
Among the amendments recently introduced in the Singapore Company Act it is worth mentioning the introduction of the concept of small company which is no longer subject to audit requirements and the removal for subsidiaries to have the same financial year with the foreign parent company. Our Singapore company formation specialists can offer more information on the changes brought to the Company Act.
Opening a Singapore vs. starting a business in Australia
In terms of company registration in Singapore and Australia, the procedures in the two countries are similar and consist in the following steps:
- – reserving the company name;
- – preparing the incorporation documents;
- – registering with the Trade Register and for taxation purposes;
- – registering for insurance purposes.
After the company is registered, one must be careful with the licensing requirements which are different for Singapore and Australian companies. Also, in the case of Singapore company formation, the procedure takes a few days, while in the case of Australian companies the process could be delayed by several days due to certain impositions related to the business visa.
For assistance in opening a company in Singapore, do not hesitate to contact our company registration agents.