If you are you are entering an Australian market in the beginning, international customers tend to consider seeking legal assistance from their regular legal counsellor who is located in the local region. The apparent benefits of working with an experienced and trusted advisor you have in mind and who is familiar with your preferences and needs are tempting. But there are many reasons to hire the services of an Australian lawyer to help you (and the local advisors) prior to establishing your business in Australia.
Australia’s legal system is distinctive.
Our legal system has been developed in a way that is independent for more than 100 years through legislation passed by the court and parliament. Only Australian licensed lawyers are qualified to give advice on Australia’s legal system.
The legal system of Australia is multi-layered
Australia has three levels of government, which create laws that regulate business activity in Australia which include the federal government, the eight State/Territory governments as well as hundreds of local authorities. The interaction of laws can be confusing, so you require local knowledge to be able to navigate this complex terrain.
The options for structuring are numerous.
There are a variety of legal structures that can be operated with a sole proprietor partnership or trust, joint venture private company , or public company (including none liability, guaranteed by guarantee and publicly traded companies). Foreign companies can also be registered to conduct operations in Australia. The liability for the business owners varies based on the type of structure. Additionally, the amount and method in which the structures are taxed under Australian law can also differ. A lawyer from your local area will explain the various options available and suggest the best structure for your specific needs.
Investment in foreign countries is controlled
Certain foreign investments in Australia is subject to The Foreign Acquisitions and Takeovers Act (FATA) and the associated regulations, in conjunction with 50 Guidance Notes published through the Foreign Investment Review Board (FIRB), (together the Regime that was completely revised in the year 2015). Foreign investors who are considering transactions that are subject to the Regime have to submit applications to FIRB to be approved. There are other Acts and Regulations which also apply. Regulated transactions can’t be carried out without approval, and it’s highly technical that requires professional advice from a local expert is essential.
Australia includes active regulators of corporate affairs
Australia has a number of regulators for corporate activities. Recent findings from the Royal Commission into Australia’s banking and financial services industry suggests that the regulators are more aggressive and proactive in their duties as regulators. They include those of the Australian Prudential Regulation Authority (APRA), Australian Securities and Investments Commission (ASIC), Australian Competition and Consumer Commission (ACCC), Australian Taxation Office (ATO) as well as the federal and State and State Territory Environment Protection Authorities (EPA), Fair Work Commission (FWC) and State or Territory safety regulators. There are also regulatory bodies that are specific to the industry areas in which you could be planning to operate. Australian lawyers can assist to ensure that your operations are in compliance and avoid scrutiny by regulatory authorities.
The business activity in Australia is heavily controlled
Australia is a very controlled jurisdiction in comparison to other international markets. There are advantages of this (stable economy and a strong law and order and a banking system that has ridden through the GFC without blemish and so on) New investors who are considering investing in Australia may be awed and dissatisfied by the implications of this regulation. It can take time and can be complex, causing delays in entry , however an 澳洲律师 can help set expectations in a timely manner, and help you in efficiently and effectively navigate the regulatory landscape of Australia.
“Standard” notions and the underlying regimes although they are similar, could be distinct
The legal system in Australia functions similarly to similar systems across the globe. However, even when the principles and the similarities are substantial, there may remain significant distinctions. For instance the kind of pricing practice that is permitted internationally is banned by the Australian competition law and the corporate law of Australia does not accept the notion of”mergers “merger” exactly the same manner as other countries (although the same outcome is possible).
Australia is a country with its own set of business rules
“Market practice” is different in international markets and what you think to be the most common approach to an issue could be different in Australia. For instance the Australian approach to distributing the responsibility and accountability for due diligence disclosures during the context of an M&A transaction is different of that of the North American approach. Local lawyers with experience can help in understanding these differences and safeguard your rights, and also the local preferences for solutions to problems you’re familiar with.
Personal liability of officers
Senior executives who conduct business in Australia have a wide range of personal responsibilities in accordance with Australian law. In certain instances, failure to fulfill these obligations could cause personal liability for the officers. Furthermore, there are legal restrictions regarding the extent to which Australian companies are able to provide protection for officers against the risks they face. Australian lawyers can help explain the personal obligations of senior officers as well as the risk they face, and ways they can fulfill the obligations they have and what extent risks are protected by their employer.
PPSR Personal Property Securities Register Personal Property Securities Register
Australia has a distinct system that permits that registration of security rights on personal property (PPSR). The system is an amalgamation of similar rules across Canada as well as New Zealand (but is not identical). There are strict regulations regarding the registration of security interests particularly with regard to time and priority. Failure to sign up, to complete the registration correctly, or to file within the timeframe can in certain situations cause homeowners in personal assets losing the right of priority to the payment of, or title to their property. Expert advice and knowledge from a local expert is essential to avoid the risks.
