Are you a foreign entrepreneur looking to set up a business in Australia, but wondering if foreigners are even allowed to? The short answer is yes, foreigners can start a business in Australia and own it 100%, but a Pty Ltd company needs at least one Australian resident director. You don’t need to live in Australia or visit to set it up, since the entire procedure can be completed remotely.
Australia’s stable economy, transparent regulations and access to Asia-Pacific markets make it a popular choice for overseas founders. Starting a business in Australia as a foreigner does involve a few extra steps, though: appointing a resident director, opening a bank account as a non-resident, and understanding your tax obligations.
This guide answers the most common questions foreigners have, from ownership and director rules to banking and visas. For the full step-by-step registration process, see our guide to company registration in Australia.
Is Australia a Good Country to Start a Business?
Yes. Australia offers a stable economy, a transparent legal system and strong protection for foreign investors, which makes it one of the more reliable places for overseas founders to set up. Its location also makes it a practical base for reaching Asia-Pacific markets, and government programs like the R&D Tax Incentive support growing businesses.
Read more about the reasons to register a company in Australia in our detailed blog.
Can a Foreigner Start a Business in Australia?
Yes. A foreigner or non-resident can set up a company in Australia and own 100% of it. There’s no requirement for an Australian shareholder or partner, and no minimum share capital.
The main condition is that a Pty Ltd company needs at least one director who lives in Australia; the full list of requirements is below.
Most foreigners choose a Proprietary Limited (Pty Ltd) company because it offers full foreign ownership and limited liability. Other options include registering your existing overseas company as a foreign company (branch) or opening a representative office for market research.
To compare these routes, see our guide to foreign company registration options in Australia.
Legal Requirements for Starting a Business in Australia as a Foreigner
Before registering, here’s what you need to arrange as a foreign founder:
- Resident director: Someone who ordinarily lives in Australia, such as a partner, employee or a professional nominee director.
- Director ID: Every director, including foreign ones, must get a Director Identification Number before being appointed.
- Registered office address: A physical or virtual address in Australia (not a PO box) where official notices can be received.
- Company name: A unique name ending in “Pty Ltd”, checked against ASIC’s register.
Once your company is registered, ASIC issues its ACN, which must appear on your invoices and official documents. You’ll then need an ABN and a Tax File Number to operate and lodge tax returns, plus GST registration once annual turnover reaches AUD 75,000
Read more: Factors to Consider While Establishing a New Business in Australia
How to Start a Business in Australia as a Foreigner?
Setting up a business in Australia for foreigners follows the same core process as for locals, with a few extra steps. Here’s how to open a business in Australia as a foreigner, with a focus on where overseas founders usually need help:
- Choose your structure: Most foreigners register a Pty Ltd company for full ownership and limited liability.
- Appoint a resident director: If you don’t have someone in Australia, use a nominee director service.
- Register the company with ASIC: Lodge the application remotely to receive your ACN.
- Apply for an ABN: Your company can get an Australian Business Number even if its owners live overseas.
- Open a business bank account: This is often the hardest step for non-residents, as many banks need identity checks for directors and owners, so plan it early.
- Register for GST if needed: GST registration becomes mandatory once turnover passes AUD 75,000.
Taxes for Foreign-Owned Businesses in Australia
An Australian company is treated as an Australian tax resident because it’s incorporated in Australia, even if all its owners live overseas. It pays corporate tax at 25% if its annual turnover is under AUD 50 million, or 30% otherwise. Your personal tax residency is separate and is based on where you live, not where your company is registered.
When your Australian company pays profits to you as dividends, Australia may deduct some tax before the money leaves the country. This is called withholding tax. If your company has already paid full Australian company tax on those profits, you usually won’t pay this extra tax in Australia, though you may still owe tax in your home country.
Australia has tax treaties with many countries, including India, which can lower the rate and help make sure you’re not taxed twice on the same income. Since the rules depend on your situation, it’s worth getting tax advice before you pay yourself.
How Much Does It Cost to Start a Business in Australia as a Foreigner?
The cost of starting a business in Australia as a foreigner depends on the structure you choose and whether you need a nominee director, a virtual office or help opening a bank account. ASIC registration fees are only one part of the total, so ongoing compliance and local services should be factored in too.
See our detailed breakdown of company registration cost in Australia.
Conclusion
Foreigners can start a business in Australia, own it fully and run it from overseas, as long as the key local requirements are in place: a resident director, a registered office and the right tax registrations. With the right structure and support, the procedure can be completed entirely remotely. If you’re still exploring ideas, see our list of the most profitable businesses to start in Australia.
Ready to set up your business in Australia? Get in touch with our experts at OnDemand International for end-to-end support, from choosing your structure and appointing a nominee director to opening your bank account.
FAQ’s
Do I need an Australian partner to start a business in Australia?
No, a foreigner can fully own an Australian company, but you will need an Australian resident director.
What is the simplest business to start in Australia as a foreigner?
E-commerce, consulting, and technology startups are among the simplest businesses to start with low investment.
How much time will it take to set up a company in Australia as a foreigner?
If all documents are ready, registration with ASIC can be completed within 1 week.
Can I manage my Australian business from overseas?
Yes, but you need to appoint a local resident director and comply with Australian tax laws.
Can a foreigner open a company in Australia without living there?
Yes. The entire registration process can be completed remotely, and you don’t need to visit Australia. You will need at least one Australian resident director, which can be a nominee director.
Do foreigners need a visa to own a business in Australia?
No. You don’t need a visa to own or register an Australian company. You only need a visa if you plan to live or work in Australia.