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Step 1: Clarify the purposes
1. Key points:
It is important to clarify:
1) the purpose for the business expansion and creation in AUS and
2) the strategic position and goal in your business.
It is also important to understand your company's strengths and consider the business expansion and creation in AUS from a long-term perspective.
2. Check points
1. "The domestic market in Japan is limited. In order to develop a new market, we are considering the establishment of a sales office in Australia"
Do you understand how much market demand your products have in AUS? To start your business in AUS, establish a market alliance with a local company (in AUS), and expand your business through a step by step approach.
2."Because our business has a dead end in Japan, we are thinking of starting-up a new business in Australia"
Can you start a new business in Japan? What are the merits of starting-up your business in AUS? Could you do your business (which has reached a dead end in Japan) in AUS?
Step 2: Draw up the business plan for Australia
1. Goal setting:
Determine t specific targets to be achieved to reach your goals and profit within three to five years.
2. Make a schedule:
Make a brief "schedule" and "things to do" list. Here is an example of schedule:
3. Understand the Australian circumstances
To facilitate your company's success, a rough understanding of the Australian environment is important. For example,
- Is it possible to expand your business in Australia under the current (Australian) regulation?
- How would the political and economic stability in AUS affect your business?
- How would the quality of labour and labour cost in AUS impact your profit margins?
- Is there any local Australian partner which you can trust?
- What is the ease of entry of Japanese companies into AUS market?
- Are there any markets which can fit into your products?
4. Consider the structure of your business
Understand the merits and limits of establishing a base in AUS (subsidiary, branch and representative office) and capital formation (Full ownership of capital and joint ownership of capital) to develop the structure for your business in AUS.
5. Examine the procedures for withdrawing
It is equally important to determine, in advance, the procedures and standards of a withdrawal.
Step 3: Implement the Pre-feasibility study (in Japan) and local research (field study) in Australia
1. Pre-feasibility Study in Japan
Implement the Pre-feasibility Study in Japan with the aim of reviewing the business plan.
- Can your business meet the regulations (such as environmental standard) in Australia?
- How about the cost details, country risk and labour environment in AUS?
- How about the different types of formation to expand your business?
1) Political, economic and social situation
2) Foreign investment policy, regulatory and tax system in AUS
3) Factors related to product sales (market size, market characteristics and supply chain)
4) Factors related to the production (raw materials, parts procurement and infrastructure development)
5) Labour situation, particularly wage and labour legislation and regulations
6) Procurement funds and financial system
7) Visa for office representatives and living environment
8) Local partner(s)
2. Local research (field survey) in AUS
It is important to visit Australia to obtain the information from local companies and people once the location for your business has been determined.
1) Review the details which were investigated in Japan
2) Research additional details which could not be investigated in Japan
3) Assess the local situation yourself
4) Assess the local partners and potential suppliers through meetings
Step 4: Final decision making
1) Once your company decides to expand your business in AUS, establish an internal project team, produce a detailed plan and take the steps to establish a base in AUS.
2) In regards to the establishment of a local company in AUS, J-ABC can fully support your company and introduce professionals such as lawyers and accountants to provide advice if necessary.
Step 5: Establish local subsidiary company in Australia
1) In regards to the establishment of a local subsidiary company overseas, there are different procedures required by different countries.
2) J-ABC has prepared a special registration form in Japanese (with English) for your company to fill to register your new company.
Here is a sample of the Japanese registration form (only partially shown):
3) J-ABC can also support your company to open a bank account, register a tax file number (TFN) and Australian Business Number (ABN) which are generally required for operating a company in Australia.
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