You don’t need to live in Australia to own a business there. What you do need is a clear understanding of exactly what the process involves before you spend a single dollar or submit a single form.
Australia is one of the most open economies in the world for foreign business ownership. Most sectors allow 100% foreign ownership, and the registration process itself can be completed in under a week when everything is in order. There are several legal requirements that trip up foreign applicants, particularly around resident directors, tax registration s, and sector-specific approvals, and these can delay the whole process if you’re not aware of them upfront.
The stock of foreign investment in Australia reached A$4.97 trillion by the end of 2024, reflecting a long-term average growth rate of 7.7% per year since 2003. The country has built a regulatory environment that genuinely welcomes international capital, and that extends to individual foreign entrepreneurs, not just institutional investors.
Here’s exactly how to register a company in Australia as a foreigner, step by step.
Steps to Register a Company in Australia as a Foreigner
Step 1: Choose the Right Business Structure
Before you can register a company in Australia, you need to decide what type of entity you’re forming. This decision affects your tax obligations, personal liability, and the amount of ongoing administration required. Getting this right from the start saves a significant amount of time and legal cost down the line.
Proprietary Limited Company (Pty Ltd)
For most foreign entrepreneurs, a proprietary limited company, known as a Pty Ltd, is the right choice. It is registered as a separate Australian legal entity, offers limited liability protection, and gives your business local credibility. Your personal assets remain legally separate from company debts, and you can issue shares to bring in investors as the business grows. This is the structure the remainder of this guide focuses on.
Branch Office
If you already have an established company overseas and want to operate in Australia without setting up a new legal entity, a branch office is worth considering. It functions as an extension of your parent company rather than a standalone Australian business. There is no separate legal entity and no limited liability protection, meaning the parent company remains fully liable for all Australian debts and obligations. This suits short-term or trial operations but is less practical for long-term growth.
Step 2: Appoint an Australian Resident Director
This is the requirement that catches most foreign founders off guard. Under the Corporations Act 2001, every proprietary company registered in Australia must have at least one director who ordinarily resides in Australia. Foreigners can be shareholders and, in most industries, own 100% of the company, but the resident director requirement cannot be bypassed.
If you don’t have a contact in Australia willing to take on this role, professional resident director services are available through corporate service providers. The person serving as resident director carries genuine legal responsibilities under Australian law, so this is not a formality to take lightly. Your company’s constitution should include clear indemnity arrangements that protect both parties.
Every director, whether resident or foreign, must also obtain a Director Identification Number (DIN) before being appointed. For overseas residents who cannot create a myID account with standard identity strength, the application must be completed on a paper form and sent by post to the Australian Business Registry Services (ABRS). Factor this into your timeline, as the postal process adds several weeks compared to the online route available to those already in Australia.
Step 3: Check Whether You Need FIRB Approval
Not every foreign investor needs approval before proceeding, but for some sectors it is a legal requirement. The Foreign Investment Review Board (FIRB) screens certain investments to determine whether they align with Australia’s national interest, and operating without required FIRB clearance can lead to serious civil and criminal penalties.
FIRB approval is most commonly required for businesses in sensitive sectors including real estate, agriculture, and critical infrastructure. Screening thresholds for many business investments are typically around AUD 310 million, depending on the sector and any applicable trade agreements between Australia and your home country. Most small to medium foreign-owned businesses sit well below this threshold and will not require approval.
If you are uncertain whether your business type triggers an obligation, the Australian Treasury’s FIRB website has a self-assessment tool you can use as a starting point. For anything involving a regulated sector, it is worth getting written confirmation from a local legal adviser before you proceed with registration.
Step 4: Register Your Company with ASIC
The Australian Securities and Investments Commission (ASIC) manages the national register of all Australian companies and is where your company formally comes into existence. To register a company in Australia, you must lodge an application through ASIC regardless of where in the world you are based.
What You’ll Need Before You Apply
You will need to gather your proposed company name (checked for availability against the ASIC register), a physical registered office address in Australia (a PO Box is not acceptable), a principal place of business address, signed consent forms from all directors and shareholders, your intended share structure, and confirmation that every director has already obtained their DIN.
Completing the Application
You can lodge your application through the Business Registration Service (BRS) online portal or through a registered ASIC agent. The form used is ASIC Form 201. Check that all director and shareholder details exactly match official identity records, including middle names and spelling, as errors are the most common cause of delays. The registration fee for 2025 is AUD 576. Once approved, ASIC issues your Australian Company Number (ACN), a unique nine-digit identifier. Most applications are processed within one to two business days.
Step 5: Apply for an ABN and Tax File Number
Once your ACN is issued, you can apply for an Australian Business Number (ABN) and a Tax File Number (TFN) through the Australian Business Register. Both are required before your company can legally invoice clients, pay staff, or interact with the Australian Taxation Office (ATO).
The ABN is an 11-digit number used to identify your business for tax and invoicing purposes. A company’s ABN typically incorporates its ACN, with two additional digits added at the beginning. The TFN is a separate identifier used to file tax returns and is issued automatically by the ATO when you complete your ABN application, so you do not need to apply for it separately.
Both applications are completed online through the Australian Business Register portal at abr.business.gov.au. The process is straightforward and typically completed within a few days of submission, provided your ASIC registration is confirmed and your details are consistent across both applications.
Step 6: Register for GST
Goods and Services Tax (GST) registration is separate from your ABN and is not automatic. You apply for it through the ATO’s Business Portal once your ABN is active. It is optional for new startups, but registration becomes compulsory once your annual business turnover exceeds AUD 75,000.
If you expect your business to cross that threshold in the early months of trading, or if you want to claim GST credits on purchases from day one, it makes sense to register at the same time as your ABN rather than waiting. Once registered, you are required to lodge Business Activity Statements (BAS) either monthly or quarterly, depending on your turnover and preference. Failing to register when required, or lodging BAS late, results in ATO penalties that are straightforward to avoid with a bit of forward planning.
Step 7: Open an Australian Business Bank Account
A local business bank account is essential for receiving payments in Australia, managing payroll, and demonstrating to clients and suppliers that your company is properly established. Most Australian businesses and government agencies will not transact with a company that lacks a local account.
You can open a business bank account as a foreigner once your company is registered in Australia with a physical address. Banks will typically ask for your ACN, ABN, Certificate of Registration, company constitution or replaceable rules documentation, and identity verification for all directors. Some banks allow overseas applicants to complete identity verification remotely, while others require in-person attendance at a branch.
If opening a traditional account proves difficult while you are still abroad, multi-currency online business accounts can serve as a practical interim solution. These give you Australian account details for receiving local payments while you work through the requirements for a full-service Australian bank account.
Step 8: Obtain Licences and Permits
ASIC registration makes your company a legal entity, but it does not automatically authorise you to trade in every industry or location. Many business activities in Australia require additional licences or permits before you can begin operating, and the requirements vary by industry, state, and territory.
Common examples include trade licences for construction and electrical work, financial services licences issued by ASIC, food business registrations, liquor licences, and health and safety permits for certain professional services. Some licences are issued by federal bodies, while others are managed at state or local government level.
The Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au lets you search for every licence and permit relevant to your specific business type and location. Running this search before you begin trading is strongly recommended. Operating without required permits can result in significant fines or a forced suspension of your business operations.
Ongoing Compliance After You Register a Company in Australia
Registering your company is the beginning, not the end, of your obligations with ASIC and the ATO. Australian corporate law requires you to meet a number of ongoing requirements each year to keep your company in good standing. Here is what to stay on top of:
- Annual ASIC review: ASIC issues an annual review statement and invoice each year. The review fee for a proprietary company is approximately AUD 321 for 2025. You have 28 days from the review date to confirm your details and pay.
- Notifying ASIC of changes: Any changes to directors, shareholders, or registered addresses must be reported to ASIC within 28 days of the change occurring.
- Annual tax return: You are required to lodge a company tax return with the ATO every year. The corporate tax rate for base rate entities, which covers most small businesses, is 25%.
- BAS statements: If you are registered for GST, Business Activity Statements must be lodged monthly or quarterly depending on the schedule agreed with the ATO.
- Financial record keeping: Australian law requires you to maintain accurate financial records for a minimum of seven years.
Staying across these deadlines from year one avoids penalties that accumulate quickly and are disproportionately painful for early-stage companies.
Final Thoughts
The process to register a company in Australia as a foreigner is genuinely accessible, but it has more moving parts than many people expect. The resident director requirement, the postal DIN process for overseas applicants, potential FIRB obligations, and the layered tax registrations all need to be sequenced correctly and completed before you can legally begin trading.
Working with a corporate services provider experienced in non-resident registrations makes a real difference, both in terms of speed and in avoiding the kind of documentation errors that set timelines back by weeks. If you need support with international company registration, employment compliance, or market entry across borders, EMS Ltd offers global employer of record and entity setup services built specifically for businesses expanding into new markets.
