Interested in Companies, Trusts, Partnerships or Foreign Entities?
Choosing the right business structure is one of the most critical decisions for any entrepreneur.
Your choice directly impacts tax obligations, asset protection, legal liability, access to deductions, eligibility for government incentives, long-term growth strategy, and even how much of your income you can legally retain.
Whether you're considering a Company, Trust, Partnership, Foreign Entity, or Sole Trader, the right structure can significantly reduce your tax burden, strengthen asset protection, and set a solid foundation for stable business growth.
Which Structure Is Right for You?
1. General Partnership (Non-Family Partners)
A business structure where two or more unrelated individuals operate a business together.
Partners share profits, losses, legal liability, and all tax reporting obligations.
Simple to set up but carries high personal liability for each partner.
👉 Best for small ventures where clear agreements and strong mutual trust are in place.
2. Company (Pty Ltd)
A separate legal entity distinct from its shareholders.
Offers strong asset protection, limited personal liability, and access to lower company tax rates.
Suitable for businesses planning to expand, hire employees, or attract investors.
👉 Ideal for scaling, reducing personal risk, and reinvesting profits for long-term growth.
3. Trust (Discretionary or Unit Trust)
A structure where a trustee manages assets and income on behalf of beneficiaries.
Provides flexible income distribution, potential tax advantages, and strong asset protection.
However, setup and compliance requirements are more complex.
👉 Best for family planning, long-term asset protection, and advanced tax strategies.
4. Foreign Entity (Branch or Subsidiary)
Used when an overseas company operates in Australia, either as a branch office or through an Australian subsidiary.
Carries additional registration, ASIC compliance, and ATO reporting obligations.
Provides international structuring options but requires careful tax and legal planning to avoid unintended liabilities.
👉 Best for overseas companies entering the Australian market seeking local presence and operational flexibility.
