Monday 27 October 2014

Business in America


Business in America

America’s economic growth and international competitiveness depend on our ability to innovate. President Obama believes that we will create the jobs and industries of the future and restore middle class security by doing what America does best – investing in the creativity and imagination of our people. We must out-innovate, out-educate, and out-build the rest of the world to ensure that our nation achieves rapid, sustained and broad-based economic growth.
President Obama is committed to helping America’s small businesses grow and prosper. Small businesses are the engines of job creation and essential to strengthening our national economy. That’s why he has cut taxes for small businesses and helped them get access to the capital they need to expand and create the jobs we need now and for decades to come. And that's why the American Jobs Act provides tax relief for every small business, rewards for those that hire and invest and includes new measures to cut red tape and ease access to capital.
President Obama set a goal of doubling America’s exports within five years and his Administration is taking steps to do just that: getting Congress to pass three critical trade agreements, expanding loans to exporters, preserving the free flow of information on the Internet and promoting American manufacturing. And he is working to make America the best place for people to do business, by reforming our patent system, improving our infrastructure, and investing in our workers.
To restore security to the middle class and create an economy built to last – that creates the jobs of the future and makes things the rest of the world buys we have to out-innovate the competition. But to win that competition, American companies must be able to take their ideas to market quickly without the constraints of undue regulation and costs. That’s why President Obama has directed his Administration to reduce barriers to American business success, including reforming our patent system, reviewing federal regulations, and promoting trade.
President Obama knows that today’s entrepreneurs are tomorrow’s Fortune 500 companies and exemplify America’s competitive edge in ingenuity and innovation. That is why the President has tasked his administration with crafting policies that eliminate barriers to start-up formation, drive investment to the best ideas, and accelerate the growth of young companies in the marketplace.

Sunday 5 October 2014

Nigerian

Nigerian Business Structures

You are likely to meet a variety of different business structures in Nigeria depending on the country of origin of the company you are dealing with. Subsidiaries of multinational will probably take on many of the characteristics of the parent company but will still have a local flavor.

Indigenous Nigerian companies will, however, have an approach and flavor all of their own. All native Nigerian companies will display massively hierarchical tendencies as befits a country rich in tribal tradition and culture. Thus the boss expects and receives respect from those below them in the structure. As age is highly valued in Nigerian culture, managers are often of the older generation age brings wisdom.

Although people at a middle-management level will like to give the impression that they have great power in the organization, they rarely do. Decisions are invariably made right at the top, so try not to waste too much time trying to force decisions out of more junior employees. If possible, go right to the top.

This does not, however, mean that people lower down the corporate structure can be ignored as they may very well be pivotal in influencing the eventual decision-maker. As a relationship-oriented culture, it is important to be seen to be trying hard to develop good relationships at all levels within the organization.

American Business Structures

American Business Structures


Business structures in the USA are incredibly varied but tend to have several characteristics in common.

Firstly, the company is an entity in its own right and exists independently from its employees. Members come and go, perform necessary tasks at particular points in the life cycle of the company and then leave when no longer required for the well being of the organization. The relationship between employer and employee is a transactional one where relationship and sentiment are a luxury which cannot be justified.  Current economic conditions and the increasing influence of technology-based communication methodologies have only increased this disconnect between the employee and long-term, stable employment conditions.  In a country where job-mobility and virtual working are increasing, transferable skills become the key to future success.

Secondly, the CEO of an American organization holds great sway within the company. Senior management is more embedded in the personality at the top than in some other countries, such as Germany, where senior management is collegiate in approach. Although the company will have a Board of Directors, the Board is highly unlikely to have any input on the day-to-day running of the company which is left very much in the hands of the CEO who stands or falls on results.  This can be seen as a high risk, high reward approach - it can bring great success but also spectacular failure.

Thirdly, accountability within the company tends to be vertical and easily observable. Americans like to know exactly where they stand, what are their responsibilities and to whom they report.  If job security is weak, I'd like to understand the extent of my liability on any particular issue.

Saturday 4 October 2014

Brazil


Doing Business in Brazil

Brazil is a major exporter of many of the world’s most sought after commodities which has, for example, seen its trade flows with the emerging super-economy that is China explode over the past decade or so.  Couple this fact with the enormous surge in commodity prices over the same period and it’s an easy assumption to make that Brazil is in a very good place at the moment.  Indeed, Brazil weathered the economic storms of 2008 pretty well and didn’t really dip in the manner of many other advanced industrial countries.  The oft used phrase which Brazilians use when things are going well in the country; ‘God is a Brazilian’ has probably been much in use of late.

In addition to this Brazil is fast becoming the South American economic super-power – hardly surprising given its mineral wealth, massive population (and therefore domestic market) and geographic location.  (The only countries that Brazil does not share a border with in South America are Chile and Ecuador and it is the fifth largest country by landmass in the world).

However, look below the surface of these facts and things may not be as positive as they might at first appear.  The Brazilian currency the real has remained stubbornly expensive over many years and the impact of this can be seen in the cost of living that hits the visitor between then eyes as soon as they book a hotel room or buy themselves a meal.  The disparity of income levels between the urban rich of Brazil and the rural poor continues to widen and this inequality risks destabilizing the fragile political peace which followed decades of turmoil and military intervention.  Add to these problems the never-ending struggles against corruption and it is probably true to say that Brazil is poised between a very bright future and the danger of slipping back into some old, familiar problems.

This combustible mixture of positive signs and potential pitfalls mean that it imperative that those looking to do business in Brazil or with Brazilians, really need to do some careful preparation and one of the key elements of that preparation should be to look carefully at the business culture of the people you are likely to meet.  In Brazil they do things the Brazilian way and the business culture and etiquette you will meet there are as distinct and unique as those you might find in Germany or India.

This Brazil country profile is designed as a starting point to help you begin to wrestle with the way things are done in Brazil – but it is only a starting point.  When you have read this country profile, why not invest in one of the books suggested in the reading list or, better still, talk to Global Business Culture at info@globalbusinessculture.com.  Global Business Culture are world leaders in the field of the impact of cultural differences on international business performance and have assisted a large number of companies who are working with or wish to work with Brazil.

DOING BUSINESS IN AUSTRALIA

Business hints, tips, advice and services for Australians and migrants


A SHORT FORM - BUSINESS PROFILE


 INTRODUCTION

Australia has an area of 7.7 million square kilometres and comprises six States and two Territories.  Approximately 65% of the population live in the capital cities with the remainder living mainly in coastal areas or in medium to small rural towns.

Over the last 40 years there have been large numbers of migrants from Europe and Asia, who have substantially influenced the tastes, outlooks and attitudes of the indigenous population.
As at June 2000 the population was 19.2 million (Source: Australian Bureau of Statistics).

EXCHANGE CONTROL - INTERNATIONAL INVESTMENT

The Reserve Bank of Australia administers the exchange controls regulations within Australia. However most exchange controls have been repealed in recent years.
The Financial Transaction Reports Act 1988 (formerly the Cash Transaction Reports Act 1988) was introduced by the Federal Government to counter tax evasion, the cash economy and money laundering.  Effectively all transactions, other than exempt transactions, must be reported.
Reportable transactions which the Act encompasses include:-

(i) cash dealings - currency transactions exceeding $10,000;
(ii) transfers of Australian currency or foreign currency (exceeding $10,000 in value) into or out of Australia;
(iii) suspect transactions.

The reporting requirements are imposed on cash dealers as defined and the public generally and solicitors.

Non-Residents and entities with foreign interest may make direct investments and establish new businesses in Australia.  There are however some restrictions on foreign investment and some proposals by foreign interests require prior approval by the Foreign Investment Review Board (FIRB), a non statutory body which advises the Government on foreign investment policy and its administration.  The Government's foreign investment policy is framed and administered with a view to encouraging foreign investment and ensuring that such investment is consistent with the needs of Australia.

The types of proposals by foreign investors requiring prior approval include:
  • significant overseas holdings in large Australian businesses
  • establishment of large new businesses
  • acquisitions of interests in urban land
  • investment in specific industries such as banking, media, mineral production.

BANKING & FINANCE

The banking system in Australia is controlled by the Federal Government through Australia's central bank, the Reserve Bank of Australia. Generally the functions of the Reserve Bank are to supervise the banking sector and to formulate and implement banking and monetary policy.

Following the deregulation of the financial markets in the 1980's, the Reserve Bank no longer controls the exchange rate, foreign currency holdings or the lending policies of trading and savings banks.

A further relaxation in policies in the early 1990's has resulted in the lifting of the former restrictions imposed on the number of foreign banks authorised to conduct banking in Australia.

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There are four major nationwide trading banks, all of which are publicly traded on the stock exchange. These banks offer a full range of banking services.
The smaller State and regional based trading and savings banks are generally financially backed by Government or statutory bodies. These also offer a wide range of services but with limited national facilities.
Overseas banks operate in the State capital cities. Generally they target specialised areas of the market rather than provide a full range of services.
Building societies and credit unions compete with the major trading banks in the consumer and domestic lending sector.  A large number of locally owned and international merchant banks also compete with the major trading banks in the higher end of corporate finance.

TYPES OF BUSINESS ENTERPRISE

The common forms of business enterprise in Australia are companies, partnerships and joint ventures, trusts, sole traders, branches and representative offices of overseas corporations.

The type of company most commonly used for commercial purposes is that limited by shares.  Such companies must have at least one shareholder, one Australian resident director and an Australian resident secretary.

Foreign companies intending to commence business in Australia will normally choose between forming a subsidiary company or establishing a branch.

If a branch structure is preferred, a foreign company must first register with the ASIC and appoint a local agent. Thereafter it must file a copy of the company=s accounts annually with the ASIC. Separate branch accounts do not need to be filed but are required for tax purposes. A foreign company remains liable for all debts and other contracted obligations of the branch.

Individuals may wish to operate as a sole trader, form a company or a trust, or may find a partnership more suitable to their requirements.

COMPANY ADMINISTRATION

A public company must have at least three directors, of whom at least two must be resident in Australia. A proprietary company must have at least one director, who must reside in Australia. The company secretary must be a natural person resident in the State of incorporation.

The first annual general meeting (AGM) of members must be held within 18 months of incorporation. Subsequent AGM=s must be held at least once a year within 5 months of the end of the financial year. A proprietary company, unless specifically requested by shareholders, need not hold an AGM if it complies with certain provisions.

The purpose of an AGM is to approve the annual accounts, decide on the payment of a dividend, elect directors and auditors and deal with any other business relevant to the members.
  • Meetings 
    General meetings can be conducted using any form of technology.  Publicly listed companies will be required to give 28 days notice and 21 days for all other companies. In the case of a proprietary company a general meeting may be held by circulating the resolution signed by all members (except a resolution to remove an auditor).

    Share Capital
  • Shares do not have nominal or parvalues
  • Companies limited by shares do not have an authorised or nominal share capital
  • The number of shares a company can  issue is unlimited.

ACCOUNTING AND REPORTING REQUIREMENTS

Effective from 15 July 2001 the Corporations Act and the Australian Investment and Securities Act 2001 became operative. Together with ancillary statutes, they replace the former Companies Act and Codes, which operated on a State basis.

The ASIC is the administering authority for companies. The ASIC has responsibility for regulation of companies, takeovers, futures trading and securities.

Companies are required to keep records in the English language and these records must be retained for at least 7 years. Accounts, if required, must be prepared each financial year and lodged with the ASIC. This depends on the classification attributed to the company.

Any date may be adopted for a company’s financial year end, but it would normally be the same as for the holding company, if applicable, or 30 June to coincide with the close of the tax year.

The required contents of a company=s accounts are specified in detail in the Corporations Act, approved Accounting Standards (which have the force of law) and Australian Accounting Standards (required by the professional accounting bodies). Listed companies must also comply with Australian Stock Exchange listing requirements.

The Corporations Law requires that accounts of all disclosing entities, public companies, large proprietary companies, registered schemes and small proprietary companies that are controlled by a foreign company for all or part of the year must be audited, laid before the AGM for approval and filed with the ASIC. Exemptions are available to small companies when the accounts are consolidated into the foreign corporations financial statements and are lodged with the ASIC. Exemption is also available for foreign controlled companys not part of a large group.

A small proprietary company is a company whose consolidated position indicates:
(i) gross assets of less than $5,000,000;
(ii) gross turnover of less than $10,000,000;
(iii) employs less than 50 employees.
To qualify as a small proprietary company two of the above criteria must be satisfied.

The following exemptions are afforded to a small proprietary company:
(i) need only one shareholder and one director;
(ii) in specific circumstances will not be required to prepare annual accounts in accordance with accounting standards;
(iii) will not be required to hold a formal annual meeting; or
(iv) have its financial accounts audited.

TAXATION OF COMPANIES

Company tax in Australia is a Federal income tax. It is levied at a flat rate, regardless of the size or structure of the company. Effective from 1 July 2001 the corporate tax rate is 30%.  The timing of payment of income tax is dependent on the quantum of tax payable.

The principles determining the income upon which tax is levied are contained in the Income Tax Assessment Acts of 1936 and 1997. The rates are contained in the Income Tax Rates Act.  The income tax law is administered by the Commissioner of Taxation which is based in Canberra, the Federal Capital.

A company which is resident in Australia is liable to Australian income tax on all its assessable income which is not specifically exempt, less allowable deductions with a credit for qualifying foreign taxes paid.

A non-resident company is liable to income tax only on assessable income derived from sources in Australia.

Assessable income includes the income calculated by normal accounting concepts, with specified adjustments, and certain capital gains. Normally tax losses can be carried forward indefinitely or transferred amongst group companies, for offset against future profits.

For income tax purposes a company is either a public or private company.  Generally a public company is defined as one in which the shares are listed on a stock exchange anywhere in the world or is a subsidiary of such a company.The significance of the distinction between public and private companies has been greatly diminished with further restrictions on inter-company dividend rebates.

Australia has adopted a dividend imputation system, which operates to impute Australian tax paid at the company level to resident individual shareholders.  Effectively the tax paid at the company level is passed on to shareholders in the form of franked dividends.

TAXATION OF INDIVIDUALS

As with company taxation, income tax is imposed on individuals by the Federal Government.

Resident individuals are liable to Australian income tax on all their assessable income. Non-resident individuals are liable to income tax only on assessable income derived from sources in Australia. As for companies, this is calculated by normal accounting concepts with specified adjustments and includes certain capital gains.

Tax rates for individuals increase with the level of taxable income. For resident individuals tax is imposed on taxable income in excess of the tax-free threshold.

The tax-free threshold (currently $6,000) is available on a pro-rata basis to a taxpayer first joining the Australian workforce on a full-time basis or taking up or ceasing Australian residence during a tax year.

Tax is deducted at source under the PAYG (Pay As You Go) system for employees. Other tax instalment systems also apply to individual taxpayers under the PAYG system. These replaced earlier instalment systems, such as Prescribed Payments, Reportable Payments and Provisional Tax Systems.
There is also a compulsory health insurance levy (Medicare). Higher income individuals (>$50,000) and families (>$100,000) who do not have private patient hospital cover will pay an extra 1% of their taxable income for the medicare levy surcharge. This is in addition to the normal 1.5% Medicare levy.

CAPITAL GAINS TAX

Capital gains tax (CGT) applies to profits on the sale of non-trading assets acquired or deemed to have been acquired after 19 September 1985.
Concessions apply within the legislation to lessen the impact of CGT, including 50% discount of the assessable gain for individuals and trusts disposing of assets which they have held for more than twelve months. Companies do not qualify for this concession.

Non residents are only subject to CGT on the disposal of assets which have the necessary connection to Australia. This term includes shares in private companies (not listed companies) and real property.

WITHHOLDING TAXES

Withholding tax must normally be deducted from interest or unfranked@ dividends (i.e. dividends paid otherwise than out of taxed company income) paid to non-residents. Similarly income tax must normally be deducted from royalty payments.
A new non-resident withholding tax regime is due to commence on 1 July 2002. Details have not been finalised.

FOREIGN SOURCE INCOME

Australia has adopted a very complex system for the taxation of foreign source income. Depending on the particular circumstances tax is either imposed when the foreign income is derived or as it accumulates in a controlled foreign company or trust.

THIN CAPITALIZATION
From 1 July 2001, a new thin capitalization regime applies. It applies to disallow a proportion of finance expenses (e.g. interest) when the amount of debt allocated to the Australian operations of both Australian and foreign multinational investors exceeds specified limits. The limits are different for banks and non-banks.

A de minimus rule applies where debt deductions do not exceed $A250,000.

OTHER TAXES/CHARGES

Federal

Fringe benefits tax is a Federal tax payable by all employers on benefits, other than exempt benefits, provided to employees. The tax is payable by quarterly installments under a self-assessment system. The tax payable is generally 48.5% of the grossed up value. This rate is subject to change in certain circumstances.

Customs and excise duties are imposed on a range of goods manufactured in or imported into Australia.

Goods and Services Tax (“GST”) is imposed at the rate of 10% on the making of a taxable supply. “Taxable Supply” includes importations – in this case GST is payable by the importer and not the overseas supplier. For taxpayers registered for GST, credits are available in respect of GST paid on inputs. GST is payable on a quarterly or monthly basis.

Superannuation Guarantee Scheme requires all employers to provide a minimum level of superannuation support for all full-time, part and casual employees. The required percentages for 2001/02 is 8%.

State

Payroll tax is based on the gross salaries and wages paid by an employer. Certain bodies and employers with small payrolls are exempt. The rates and wages thresholds vary between the States and Territories.

Land tax is a tax levied on the value of freehold property. Rates and conditions vary between the States and Territories.

Stamp duty is chargeable on certain documents, legal and other.  The rates of duty vary between the States and Territories. No stamp duty is payable on transfer of shares in listed companies.

INTERNATIONAL TAX AGREEMENTS

International tax agreements have been entered into with over 40countries Generally, the treaties avoid the double taxation of income by allowing foreign tax credits.

EMPLOYMENT AND INDUSTRIAL RELATIONS

The employment relationship is regulated by laws, both of the Commonwealth and State Parliaments. Many of the conditions are set out in awards and employment contracts, which cover specific parties to an agreement or classes of occupation.

Awards, employment agreements and legislation cover hours of work, annual leave,sick leave, long service leave, minimum rates of pay, physical working conditions and workers= compensation insurance requirements.

Approximately a third of all employees being affiliated with a union.

Foreign nationals (other than New Zealanders) are prohibited from working in Australia unless they hold a migrant visa, unconditional temporary entry permit or working holiday visa.


How to Start a Small Business in Ireland

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Entrepreneurs who want to start a business in Ireland will find that, although the process can be lengthy, there are a plethora of resources available to them to make the start-up stage go smoother. Enterprise Ireland and BASIS are two organizations that can both be found online and provide both new and experienced business owners with information, resources and advice on starting and growing a business in Ireland.

Decide whether you want to operate as a sole trader or you want to start a partnership, a limited liability company or a co-operative, the four business structures available in Ireland. Carefully consider the advantages and disadvantages of each business structure when determining which is best for your business.

Settle on a business name. You cannot use a business name in Ireland if it is already being used by another business, if another business has the same name but the name is spelled differently or if the name is deemed undesirable by the Enterprise, Trade and Employment Minister.
Go to the Companies Registration Office website, at cro.ie, where you can download the form you will need to complete to register your business name in Ireland. Once you have filled out the registration form, mail it to Companies Registration Office, the Registrar of Companies, 14 Parnell Square, Parnell House, Dublin 1.
Register with the Revenue Commissioners for tax purposes by going to revenue.ie, where you will find the required forms. The form you will be responsible for completing depends on the type of business structure you have chosen.
Determine whether you need to obtain registration or a business license to legally run your business in Ireland by consulting with your solicitor. Those businesses that are required to obtain a business license to operate legally in Ireland include pubs, driving schools and employment agencies.
Find funding to start your business by beginning your search at the government website BASIS.ie. If your small business offers a service or is in manufacturing and you have ten or fewer employees, you may be eligible for a capital grant, an employment grant or a feasibility grant from the County and City Enterprise Boards Services (CEB).
Take advantage of the programs offered to new business owners in Ireland. For example, Enterprise Ireland offers business owners the opportunity to consult for free with business mentors from their Mentor Network while their Research and Development Management program helps entrepreneurs hone their management and research skills.
Have a thorough understanding of the Safety, Health and Welfare at Work Act of 2005, which is essential to follow if you hire employees. You can download a PDF copy of the act at the House of Oireachtas website at oireachtas.ie.





Entrepreneurs who want to start a business in Ireland will find that, although the process can be lengthy, there are a plethora of resources available to them to make the start-up stage go smoother. Enterprise Ireland and BASIS are two organizations that can both be found online and provide both new and experienced business owners with information, resources and advice on starting and growing a business in Ireland.

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html
Entrepreneurs who want to start a business in Ireland will find that, although the process can be lengthy, there are a plethora of resources available to them to make the start-up stage go smoother. Enterprise Ireland and BASIS are two organizations that can both be found online and provide both new and experienced business owners with information, resources and advice on starting and growing a business in Ireland.

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html
Entrepreneurs who want to start a business in Ireland will find that, although the process can be lengthy, there are a plethora of resources available to them to make the start-up stage go smoother. Enterprise Ireland and BASIS are two organizations that can both be found online and provide both new and experienced business owners with information, resources and advice on starting and growing a business in Ireland.

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html

Read more : http://www.ehow.com/how_4813840_start-small-business-ireland.html