Let Us See Which Country Wins the Game of Doing Business in India VS Australia
Both India and Australia are open to the global market and adapt their trading policies according to the daily changes and business trends. Both countries have been putting efforts to boost their economies while facing ongoing challenges in the business world. Though most of the factors of doing business in India and Australia might seem similar, there are tons of them that differentiate their way of doing business. We today discuss everything that you would probably want to know about India vs Australia.
Government Friendly Regulation
In terms of total area, Australia holds a much better position than India. But that does not make India less efficient and resourceful. For doing business in India vs Australia, it is important that you consider which country offers friendly policy. This will ensure an easy set up of any business.
Australia is a developed nation while India is still emerging. This makes the government policies of India more friendly for setting up a business here. Hence, India is one of the leading nations that enjoy huge amounts of Foreign Direct Investments each year. That adds more advantage to India.
The number of opportunities is more or less similar in both the countries, but India offers a better competitive edge to the companies who wish to set up their business empire.
Density of Population
Irrespective of the total area in India vs Australia, India is denser than Australia in terms of population. Hence, MNCs willing to set up their business empire in India get attracted to the huge consumer market. This is because people prefer products not just based on the brand, but also on the basis of their price and quality. In short, companies having their business empire in India can influence a larger section of the consumer market.
As mentioned above, Australia is a developed nation while India is still emerging. As a result, the number of resources and the cost of these resources is high in both countries. But the difference between their values is huge.
Because Australia has a vast business sector and enjoys a better GDP than India, everything from labour to different kinds of resources is expensive. Whereas, companies running their businesses in India enjoy much cheaper human resources that are not just skilled but also efficient.
The value of the currency has a direct impact on a country’s economic stability. The more powerful the currency is, the better the economy would be.
Australian Dollar is one of the World’s most powerful currencies. The value of Australian Dollar hasn’t changed much since many years that gives this country an economic advantage over other countries. Whereas, India’s currency experiences various ups and downs.
But this does not stop India’s business sector to expand in the international market. Despite having a less powerful currency, India enjoys a very high rate of Foreign Direct Investment and Foreign Portfolio Investment because of the attractive opportunities it presents in front of the investors.
The economy of both countries depends on some of the major sectors. Coal, Steel, Textiles, etc. are some of the major industries that boost the business sector in a particular country. Talking about Australia, the country has five major leading industries, i.e.,
- The Financial Industry.The Business Consulting Industry
- The Metals and Mining Industry
- The Energy and Utilities Industry
- The Healthcare Industry
On the other hand, the five major leading industries in India are:
- Iron & Steel
- Information Technology(IT)
- Banking & Insurance.
Comparing both these countries on the basis of their major industries, it can be easily concluded that India stands at a much better position considering the type of their leading Industries. IT and Banking Industries are among the leading Industries that contribute extensively to the GDP of a country.
In Australia, all the major firms are subject to a Corporate Tax Rate of 30% on the taxable income for both Domestic and International firms. But this is not the case for Base Entity Companies that have an annual turnover of less than $50million. The corporate tax rate for Small Business Firms or Base Entity Companies is set at flat 27.5%. It generally takes 13-15 days in Australia to file returns and issue refunds.
In India, international firms are subject to a flat Corporate Tax Rate of 40%. Whereas, the domestic firms are subject to a corporate tax rate of 25% – 30% that varies according to the size of the firm. It takes around 48 hours to file a return in India that is much better than Australia. This is the reason many Industries prefer to set up their business in India because of less stringent tax laws.
There are different kinds of Accounting Services that would be required while incorporating a company in India or Australia. Without having the perfect resources and tools for these services, it would be really difficult for any firm to set its business empire in any country.
Both India and Australia have a competitive edge over each other in different aspects. Hence, deciding which country is better amongst India vs Australia is a little difficult. But the sole reason for India being an emerging country, places it at a better position from Australia in terms of cost of resources, cost of living, and skilled labour.
How 3E Accounting Can Help?
3E Accounting has helped more than a thousand companies to set up their business in India and worldwide. Here are some of the important services offered by 3E Accounting:
Filing regular Tax Returns is not just a duty but also a responsibility. However, filing a tax return is not as easy as it might seem. It requires professional assistance to avoid paying extra tax. Having a professional would assist you in various areas including; filing returns, transfer pricing services, etc. 3E Accounting is among the best accounting firms that help you set your business in India.
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So, don’t think twice before investing in India as it is a lucrative business opportunity any day!