How to Register a Company in Australia as a Foreigner/Non-Resident

Starting a company in Australia requires a clear understanding of legal, tax, and compliance obligations. This guide will help you navigate company formation, tax responsibilities, and regulatory requirements to ensure a smooth setup.

1. Key Requirements for Company Registration

To legally register a company in Australia, you must meet the following requirements:

Be at least 18 years old.
Not be under any legal disability (e.g., bankruptcy or criminal restrictions).
Be an Australian resident.
Hold Australian citizenship or permanent residency.
Obtain a Director’s Identification Number (DIN) from ASIC.

2. Can a Non-Resident Start a Business in Australia?

Yes, non-residents can start a business in Australia, but they must meet specific conditions:

The company must have at least one Australian resident director.
Non-residents can start a business through a partnership with an Australian resident.
Alternatively, foreign businesses can register as a foreign company instead of setting up a new entity.

For assistance, visit our Foreign Company Registration Guide.

3. Steps to Register a Company in Australia

Choose a Business Structure – Decide whether a sole trader, partnership, trust, or company suits your business goals.
Register with ASIC – Apply for an Australian Business Number (ABN) and Australian Company Number (ACN).
Open a Business Bank Account – A dedicated business account is required for financial management.
Register for Taxes – Sign up for GST if your revenue exceeds $75,000 annually.
Obtain Required Licenses – Certain industries require specific licenses and permits.

4. Understanding Tax Obligations

Companies must comply with several tax regulations in Australia:

Corporate Tax – 25% for small businesses, 30% for larger enterprises.
Goods and Services Tax (GST) – Required for businesses with annual turnover above $75,000.
Fringe Benefits Tax (FBT) – Applies to non-cash employee perks.
Payroll Tax – Varies based on state thresholds.

5. Alternative Options for Foreign Companies

If you already own a company overseas, you can operate in Australia without incorporating a new entity by registering as a foreign company.

Case Study: How a Foreigner Successfully Set Up a Business in Australia

Many foreign entrepreneurs see Australia as a land of opportunity. This case study follows David Tan, a Singaporean entrepreneur, as he navigates the process of setting up a tech consultancy firm in Melbourne.

Background

David had been running a successful IT consulting business in Singapore and saw growing demand for his services in Australia. Instead of operating remotely, he decided to register a local company in Australia to expand his reach.

✅ Step 1: Understanding Legal Requirements

Since David was not an Australian citizen or permanent resident, he needed to meet specific business registration conditions:

Appoint an Australian resident director.
Register with the Australian Securities and Investments Commission (ASIC).
Apply for an Australian Business Number (ABN).
Register for Goods and Services Tax (GST) since he expected revenue above $75,000 annually.

✅ Step 2: Choosing a Business Structure

David consulted a tax advisor to decide between registering as a sole trader, setting up a partnership, or forming a proprietary company. Given his growth plans, he chose to register a proprietary limited company (Pty Ltd), ensuring:

Limited liability protection.
Separate legal entity for financial and tax purposes.
Greater credibility with Australian clients.

✅ Step 3: Appointing a Resident Director

Since David was not a resident, he partnered with a local business consultant who agreed to act as the resident director for his company. This satisfied ASIC’s legal requirements.

✅ Step 4: Registering the Company

David registered his company under the name TanTech Solutions Pty Ltd via ASIC and received an ACN (Australian Company Number). He then:

Opened an Australian business bank account.
Set up financial and accounting software to manage invoicing and payroll.
Hired two local employees to assist with client projects.

✅ Step 5: Understanding Tax Responsibilities

David ensured his company met tax compliance requirements, including:

Corporate Tax: 25% rate applicable to small businesses.
GST Registration: Required due to revenue exceeding $75,000.
Payroll Tax: Registered for payroll tax as his employee wages exceeded the state threshold.
Fringe Benefits Tax (FBT): Applicable for employee benefits like car allowances.

Learn more about business tax obligations in our Corporate Tax Guide.

✅ Step 6: Setting Up Ongoing Compliance

To ensure compliance, David:

Filed quarterly Business Activity Statements (BAS).
Kept detailed financial records to meet ASIC’s reporting requirements.
Engaged an Australian accountant for ongoing tax planning.

🔎 Key Takeaways

David successfully established TanTech Solutions Pty Ltd in Australia. His case highlights key lessons for foreign entrepreneurs:

Having an Australian resident director is mandatory.
Understanding tax obligations is critical for compliance.
Professional assistance simplifies the process.
Foreigners can register as a foreign company instead of incorporating a new business.

FAQs on Setting Up a Company in Australia

Can a foreigner start a company in Australia?

Yes, but they must have an Australian resident as a director. Learn More.

What is a Director Identification Number (DIN)?

It is a legal requirement for company directors. You can apply via the Australian Business Registry.

Do I need an ABN to register a company?

Yes, an Australian Business Number (ABN) is required for tax and legal purposes. Learn about ABN registration here.

Ensuring you meet the legal and financial requirements is essential for a smooth company setup process. For professional assistance, consider consulting Taxopia’s expert services.

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How do I Register a Company in Australia as a Foreigner/Non-Resident?