In the event of making their way into Australia for the first time, Australian market, for the very first time international customers typically consider getting their legal advice from their current legal advisor who is located in the local region. The apparent benefits of working with an adviser you have in your life and who is acquainted with your preferences and needs are tempting. But there are many reasons to retain the services of an Australian legal firm that can help you (and the local advisors) before you begin operations in Australia.
The legal system in Australia is unique.
Our legal system has been developed in a way that is independent for more than 100 years through the courts and parliamentary-made law. Only an 澳洲律师 are qualified to provide advice on the legal system in Australia.
The legal system in Australia is multi-layered
Australia has three levels of government which make laws that regulate business activity in Australia which include the federal government, the eight States/Territory governments, and hundreds of local authorities. The interaction of laws is a bit tangled, and it is essential to have local knowledge to navigate the complexities.
The options for structuring are numerous.
There are a variety of structures , which include operating in a solo practitioner partnership or trust, joint venture private or public company (including the ones that have no liability, such as restricted by guarantee, and publicly traded companies). Foreign companies can be registered to conduct operations in Australia. The risk of liability for the business owners varies based on the form of the business. Furthermore, the rates and manner in which these structures are taxed according to Australian law is also different. An experienced lawyer in your area can help you understand 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 controlled by The Foreign Acquisitions and Takeovers Act (FATA) and the associated regulations, in conjunction with 50 Guidance Notes published from 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 regulation under the Regime have to submit applications to FIRB to be approved. Additionally, there are Acts and Regulations that are also in force. Regulated transactions are not permitted without this approval . It’s an extremely technical field that requires expert advice from local experts is required.
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 fulfilling their regulatory responsibilities. 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) and federal and State and State Territory Environment Protection Authorities (EPA), Fair Work Commission (FWC) and State and State Territory safety regulators. In addition, there are regulatory bodies that are specific to the industry industries in which you might be planning to conduct business. Australian lawyers can assist in ensuring that your business activities are compliant with regulatory requirements and stay clear of scrutiny.
Businesses in Australia is highly regulated
Australia is a very restricted jurisdiction compared to other international markets. There are advantages in this (stable economy and a strong law and order the banking system of Australia surviving through the GFC clean and so on) Investors who are new to Australia may be awed and frustrated by the real implications of this regulation. It can take time and may be complicated, slowing entry , however Australian lawyers can help set expectations correctly, and help you in efficiently and effectively navigate the regulatory landscape of Australia.
“Standard” notions and rules although they are similar, could be distinct
The legal system in Australia is similar to the equivalent legal systems across the globe. But, even when the principles and commonalities are substantial, there may remain significant distinctions. For instance certain pricing practices that are permitted internationally is banned under Australia’s competition law and the corporate law of Australia does not recognize the notion of”mergers “merger” as a “merger” in the exact manner as other countries (although the same outcome is possible).
Australia is a country with its own rules for business
“Market practice” is different across markets around the world and what you think to be the normative approach to an issue could be different in Australia. For instance the Australian approach to distributing the burden and responsibility for disclosures of due diligence in the context of an M&A transaction is in contrast of that of the North American approach. Expert local lawyers can help you in understanding these distinctions and safeguard your rights, in addition to the local preferences for solutions to issues that you’re familiar with.
Personal liability of officers
Senior executives who conduct business in Australia are obligated to perform a variety of personal obligations according to Australian law. In certain instances, failure to fulfill these obligations could cause personal liability for the officers. Furthermore, there are legal limitations on the extent that Australian companies are able to provide security to officers in 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 as well as what extent these risks are protected by their employers.
PPSR — Personal Property Securities Register
Australia has a distinct system that permits that registration of security interest for personal properties (PPSR). The system is an amalgamation of similar systems across Canada as well as New Zealand (but is not identical). There are strict rules regarding the registration of security interests particularly with regard to time and priority. Failure to register, properly register or to register within the timeframe can in certain situations cause the owners who own personal properties losing their priority in the payment of, or the title to their property. Local knowledge and guidance is essential to avoid the risks.
Global Business Article Submission