Home – New Forums Starting your journey Advice required on new business structure.

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  • #986537
    umair
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    Consider this:

    An online shop with 2 partners. 1 is Australian resident, other is not and lives in a gulf (a tax free country).

    Most of the spendings are done by Australian resident because he has the credit cards and paypal and can pay for the stuff more easily.

    What structure would be best suited for this kind of partnership which will minimize tax implications and will allow the Australian resident to leave Australia if he desires so later on without being held accountable to Australian taxes after becoming non-resident.

    #1158317
    umair
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    anyone?

    #1158318
    Trent
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    Hi Umair,

    The part that might be making people think twice before helping you is:

    umair, post: 182553 wrote:
    …will allow the Australian resident to leave Australia if he desires so later on without being held accountable to Australian taxes after becoming non-resident.

    It might not be your intention but it sounds like you want all of the advantages of being in Australia with none of the liabilities – in short, that you just want to leave later…

    …Perhaps you meant something different but that’s the message that shines through and may rub some people the wrong way ;)

    I have experience with overseas Joint Ventures but I can only speak from my own experience and that of my clients, you should seek an accountant’s assistance. I’d say call a couple of CPA’s and ask them if they have experience with Joint Ventures or Partnerships between people in different countries.

    #1158319
    umair
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    Trent, post: 182963 wrote:
    Hi Umair,

    The part that might be making people think twice before helping you is:

    It might not be your intention but it sounds like you want all of the advantages of being in Australia with none of the liabilities – in short, that you just want to leave later…

    …Perhaps you meant something different but that’s the message that shines through and may rub some people the wrong way ;)

    Oh!, thats not true. Trouble is that I am in Australia, and partner is not. We are a startup, he cant possibly leave his current employment in another country to just try his luck on this project. Even if he wants to, he wont be able to secure decent visa for Australia.

    Given these facts, I might have to leave Australia and be in the same country as him. If that happens, and we are successful, returning to Australia will not be possible for me because then I too will settle in the same country.

    But all this can take couple of years and I want a structure that will suit our requirements best.

    Trent, post: 182963 wrote:
    I have experience with overseas Joint Ventures but I can only speak from my own experience and that of my clients, you should seek an accountant’s assistance. I’d say call a couple of CPA’s and ask them if they have experience with Joint Ventures or Partnerships between people in different countries.

    Do you mind sharing what kind of business structure you had in your joint ventures?

    #1158320
    umair
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    Plus ofcourse I will be paying all the taxes that I owe because of my residence in Australia.

    #1158321
    TehCamel
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    you should see an accountant.

    however, consider this suggestion:

    1. Create a Pty Ltd company in Australia, limitd by shared
    2. Issue shares, according to Capital input, voting rights etc, whatever works for your business.
    2a. Issue his shares to whatever entity he says
    2b. issue your shares to whatever entity is relevant. If it means you specifically, or another company you own, or a trust, whatever.
    3. Company pays 30% tax.
    4. Company distributes earnings according to share holders.
    4a. You’re responsible for your taxes on the company profits paid to your holding entity while you’re resident. Once you become non-resident, you’ll need t investigate that
    4b. we don’t worry about your associates taxes.
    5. All the purchases being made here are made on the company account/credit card, not th eaustralian director’s credit cards etc.

    I could be wrong on the above.
    Speak to an accountant.

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