Australia has emerged as one of the top destinations for entrepreneurs looking to expand internationally. With a robust economy, a transparent regulatory system, and a business-friendly environment, it offers immense opportunities for foreign investors and entrepreneurs. As per the World Bank’s Ease of Doing Business report, Australia ranks 14th worldwide, making it an attractive choice for business ventures.
But can a non-resident start a business in Australia? What are the requirements, costs, and compliance measures? This guide will walk you through every detail, from the process to start a business in Australia as a foreigner to understanding tax obligations and benefits. Let’s get started now.
Is Australia a Good Country to Start a Business?
Yes! Australia is one of the best countries in the world to set up a business.
Here’s why you should choose to expand your business in Australia:
- Strong Economy: Australia boasts a GDP of $1.98 trillion and has had over 30 years of continuous economic growth.
- Business-Friendly Regulations: Australia’s regulatory framework supports entrepreneurship, with a streamlined registration process and strong intellectual property protections.
- Access to Global Markets: Strategically located near Asia-Pacific markets, Australia is a great hub for businesses looking to expand internationally.
- Government Support & Grants: Programs such as the R&D Tax Incentive and Export Market Development Grant (EMDG) provide financial support for startups and international businesses.
- Stable Political & Legal System: Australia offers a safe and predictable business environment with transparent policies and strong legal protections for investors.
Read more about the reasons to register a company in Australia through our blog.
Can a Non-Citizen Start a Business in Australia?
Absolutely! Non-residents can start and register a company in Australia as a foreigner. However, non-residents must comply with specific legal and tax requirements.
Business Structures Available for Foreigners:
- Sole Trader: Suitable for small businesses but needs an Australian resident to operate.
- Partnership: Involves two or more people but still needs an Australian resident.
- Proprietary Limited Company (Pty Ltd): A Proprietary Limited Company in Australia is the most popular structure for foreign entrepreneurs.
- Branch Office: A branch office in Australia permits an international company to operate in Australia but requires registration with ASIC.
- Representative Office: For market research and promotional activities (cannot engage in trading).
For most foreign entrepreneurs, setting up a Pty Ltd company is the best option, as it provides limited liability protection and flexibility in ownership.
Requirements for Starting a Business in Australia as a Foreigner
Before you register a company in Australia as a foreigner, ensure you meet these requirements:
- Australian Resident Director (For Pty Ltd companies)
- Valid Business Address in Australia
- Australian Company Number (ACN)
- Registered Business Name
- Tax Registration (ABN & GST if applicable)
Opening a Business in Australia as a Foreigner
Setting up a company in Australia as a non-resident involves several steps.
Here’s a step-by-step guide to start a business in Australia as a foreigner:
1. Decide the Legal Structure
The first step to start a business in Australia as a foreigner involves selecting the business structure. Most foreigners opt for a Proprietary Limited (Pty Ltd) company due to its flexibility and liability protection.
2. Appoint an Australian Resident Director
The next step to register a company in Australia as a foreigner involves selecting a minimum of one director who has to be a resident of Australia for a Pty Ltd company. If you don’t have a resident director, consider using a Nominee Director Service.
If you register your company with OnDemand International, we can also offer you professional nominee director services in Australia to support your business.
3. Register for an Australian Business Number (ABN)
The ABN is essential for tax and legal purposes. You can submit an application for an ABN via the Australian Business Register (ABR) website.
4. Register a Business Name
Select a unique name for your firm and register your chosen business name in Australia with the Australian Securities and Investments Commission (ASIC). You can verify the availability of your company name on ASIC’s portal.
5. Obtain an Australian Company Number (ACN)
The Australian Company Number is required for registering a Pty Ltd company. This is issued by ASIC after company registration.
6. Set Up a Corporate Bank Account
In order to manage your financial transactions, you must also set up a corporate bank account in Australia. Most banks require the presence of at least one director in Australia although some international banks offer remote account setup services.
7. Apply for Tax File Number (TFN) and Goods and Services Tax (GST)
After your business is registered, you must also apply for the Tax File Number which is required for business tax obligations. GST Registration in Australia is necessary if your yearly earnings surpasses AUD 75,000.
What is the Most Profitable Business in Australia?
Some of the most profitable businesses in Australia are listed below:
- E-commerce & Dropshipping
- Technology Startups
- Financial Services & Consulting
- Real Estate & Property Management
- Renewable Energy & Sustainability Ventures
- Healthcare & Aged Care Services
- Tourism & Hospitality
Taxes and Compliance for Foreign-Owned Businesses in Australia
Foreign business owners must comply with Australian tax laws, including:
- Corporate Tax: 25-30% (varies based on business size and structure)
- Goods and Services Tax (GST): 10%
- Payroll Tax: Varies by state
- Superannuation Contributions: 11% (for employees)
- BAS (Business Activity Statement) Filing: Quarterly or annually
Benefits of Registering a Company in Australia as a Foreigner
The benefits of registering a business in Australia as a Foreginer are as follows:
Stable Economy
Businesses may prosper in a safe environment thanks to Australia’s robust economy, which is defined by consistent growth and low inflation rates.
Global Connectivity
Australia’s strategic location in the Asia-Pacific area makes it a gateway to Asia and offers unrivaled access to dynamic markets.
Technology and Innovation
The nation has a thriving environment for innovation and provides strong backing for R&D. This creates an innovative atmosphere, which makes it the perfect place for tech entrepreneurs to settle down.
How Much Money Do You Need to Start a Business in Australia?
The cost of incorporating a company in Australia as a non-resident depends on the structure and industry.
Here’s an estimate:
- Company Registration (ASIC Fee): AUD 576
- ASIC Annual Review Fee: AUD 310 (for a small Pty Ltd)
- Business Name Registration: AUD 44 per year or AUD 102 for three years
- Nominee Director Service: AUD 3,000 – AUD 5,000 per year (if needed)
- Initial Capital Investment: Varies based on industry (AUD 10,000+ for small businesses)
Why Choose OnDemand International?
Getting your head around the difficulties of launching a company abroad can be daunting. At OnDemand International, we specialize in simplifying the business incorporation process to make it easy and stress-free.
- Expert Guidance: Our team of knowledgeable professionals will guide you through every stage, ensuring all Australian requirements are met and eliminating any obstacles that may arise.
- Customized Solutions: We understand that every company is unique. Our services are tailored to fit your business’s specific needs, whether you’re a large global enterprise or a small startup.
- Efficient Process: In the business world, time is crucial. You can rely on OnDemand International for a quick and seamless business registration process, allowing you to focus on what truly matters—expanding your company.
Conclusion
Registering a company in Australia as a foreigner is a rewarding venture with the right approach. From a stable economy to global connectivity and a supportive business environment, Australia offers a wealth of opportunities for ambitious entrepreneurs.
If you’re ready to start your business journey in Australia, you can get in touch with our experts from OnDemand International. Our experts will assist you through every stage of company registration from selecting the best legal structure to setting up a corporate bank account.
FAQ’s
No, a foreigner can fully own an Australian company, but you will need an Australian resident director.
E-commerce, consulting, and technology startups are among the simplest businesses to start with low investment.
If all documents are ready, registration with ASIC can be completed within 1 week.
Yes, but you need to appoint a local resident director and comply with Australian tax laws.
