Australia is the jurisdiction that provides businesses with a favorable environment for development and work. One of the most promising and demanded directions in the state is the sphere of financial services. Under Corporate Law, a person engaged in a financial services business must acquire a Financial Services License (AFSL) in Australia by submitting a request to the ASIC. Where financial services or products are provided to retail customers (as defined in the Law), disclosure requirements must be met.
A financial license will be required for anyone planning to start a business in Australia related to the provision of financial services or products. An AFSL license as the authorization document is issued also by ASIC.
Main features of AFSL license and the procedure for getting it
To carry out financial activities in a jurisdiction, any organization must obtain an appropriate license. This permitting document allows:
- accept and conduct payment transactions;
- exchange currency;
- provide financial advice;
- investing;
- work with cryptocurrency.
To obtain an AFSL license, you will need to go through several mandatory steps.
The founders can be both residents and non-residents of the jurisdiction. This procedure in the tax authority takes a maximum of a couple of days. At the same time, an important condition of the country’s legislation is the provision of at least one director’s place in the firm to a person who is a resident of Australia. Another requirement is the entry into the staff of the firm of an Australian Public Officer, who must have an accounting education and be a citizen of the country.
To register, you will need to prepare a package of papers, which should include ASIC form FS01 – a document that indicates the current information about who the person applying for is, what business direction will be opened, what services and products will be provided as part of the business.
It is also necessary to open an account with an Australian banking institution and drawing up a simple business plan, which describes the goals and prospects for the development of the commercial direction, the expected level of income, ways of obtaining it, etc.
Documentation and company structure
The main requirements for getting an AFSL license are the following:
- availability of an employee with experience in the financial industry;
- rationale for starting such an activity;
- simple business plan;
- compliance by all directors and founders;
- availability of funds to start activities;
- prepared and approved by AML Compliance Policy;
- some additional documents.
Thus, if you want to start doing business in Australia, you cannot avoid obtaining an AFSL license. You can try to get a license yourself, but this is often difficult.
Business registration in Australia can be a promising solution for foreign entrepreneurs. When establishing an enterprise in this jurisdiction, it is important to study all legal requirements and obtain the necessary permits to carry out the planned type of activity. In addition, you may want to consider other banking licenses in some jurisdictions: that also offer excellent conditions for conducting financial activities.
