Case Study Facts

CASE STUDY FACTS: A Hong Kong investor wishes to purchase a hotel in Sydney as a joint venture with a European investor. Their long-term intention is to acquire more hotels in other Australian locations and sell or float the Australian business. They have substantial funds for the purchase of the first hotel. As a separate venture, they are also considering franchising the hotel name, so they will receive commissions / royalties from new hotels, whereby they will own the real estate but will not operate the hotel business, i.e. they would be landlords.

Question: The investors have asked for advice on all the issues they should consider before proceeding with the investment.

Considerations:
• Structuring each investment – unincorporated or incorporated joint venture, partnership or joint venture? • Tax treaty issues • Funding, including thin capitalisation • GST • Losses • Depreciation / balancing adjustments • Capital gain on sale • Repatriation of funds • Return on investment • Withholding tax on royalties

Why to invest in Australia

Do you find it hard to invest in Australia? Do you feel that starting a business in Australia is to hard, but dont know where to start? Do you look at other successful entrepreneurs from China and wonder how they got started with investing and building a business seem easy?

The reality is that investing or building a business is never easy, however, what enables them to achieve success is that they understand there is a replicable process and system of core principles that underpin the development of every individual or business.

In the book you will learn about each of the key steps to building a high-growth business, investing opportunities, and step-by-step systems that you will be able to implement into your business straightaway.

 

5 Reasons to Invest in Australia

  • Growth – 22 years of uninterrupted annual growth, Australia is consistently rank in the world’s top five most resilient economies. Australia is ‘triple A’ rated by all three major global ratings agencies.
  • Innovation – Australia has a strong track record in research and innovation. Advanced innovation framework, government support and business investment in research and development, strong intellectual property protection and opportunities for investors to collaborate in commercialising research and innovation.
  • Location – Australia is a major trading nation, with eight of its top 10 export markets within the Asian region. Australian businesses have been trading with the Asia-Pacific for more than half a century and understand these markets, offering the benefits of experience and established trade and investment ties.
  • Business – Australia has a sophisticated financial sector that provides opportunities for business investment with more than 18,000 foreign companies registered in Australia.
  • Skills – Australia’s multilingual workforce is one of the most educated in the world. Investors can access highly skilled, innovative workers who are familiar with western and Asian cultures.