How to Start a Business in Australia as a Foreigner (2026 Guide)

Australia consistently ranks among the best countries in the world to do business. The World Bank has long recognised the country for its transparent regulatory environment, strong rule of law, and efficient company registration process. As a major Asia-Pacific trade hub with free trade agreements spanning the region, Australia offers foreign companies access to a stable, high-income market of over 26 million consumers and a strategic gateway to the broader APAC economy.

The good news is that Australia actively welcomes foreign investment. There is no requirement to be an Australian citizen or resident to start a business here. Foreign nationals and companies from virtually any country can register a business, own shares, and operate commercially in Australia. That said, the process involves specific regulatory requirements that differ from most other jurisdictions — from the type of business structure you choose to the local appointments you must make.

This guide covers everything you need to know about how to start a business in Australia as a foreigner in 2026: the structures available to you, the step-by-step registration process, costs, visa considerations, common mistakes, and how a professional registration service like AusBusinessRegister can make the entire process straightforward. Whether you are a multinational expanding into the Australian market or an individual entrepreneur looking to register a business in Australia, this guide will give you a clear path forward.

Can a Foreigner Start a Business in Australia?

Yes. Foreigners can start and own businesses in Australia without holding Australian citizenship or permanent residency. This is one of the features that makes Australia an attractive destination for international expansion. The Australian Government encourages foreign investment and has structured its corporate regulatory framework to accommodate overseas businesses.

A foreigner can register a business in Australia through several pathways: registering a branch office of an existing foreign company, incorporating a new Australian subsidiary company, or even operating as a sole trader or partnership in some cases. The most common structures for foreign companies are the branch office and the subsidiary, which are discussed in detail below.

There are, however, important regulatory requirements to understand. Depending on the size and nature of your investment, you may need approval from the Foreign Investment Review Board (FIRB). You will also need to appoint key personnel who are based in Australia — a local agent for branch offices or a resident director for subsidiaries. These requirements exist to ensure that foreign entities operating in Australia have a responsible Australian-based representative for regulatory and legal purposes.

The critical first step is choosing the right business structure, as this decision affects your legal liability, tax treatment, compliance obligations, and operational flexibility for years to come.

Business Structure Options for Foreign Companies

When you start a business in Australia as a foreigner, you have three main structural options. Each has distinct legal, tax, and operational implications. Understanding these differences is essential before you begin the registration process.

Option 1: Branch Office (Australian Registered Foreign Company)

A branch office is not a separate legal entity. It is an extension of your existing overseas company operating in Australia. When you register a foreign company under Part 5B.2 of the Corporations Act 2001, the Australian Securities and Investments Commission (ASIC) issues an Australian Registered Body Number (ARBN). Your company operates in Australia under its existing foreign name and legal identity.

Advantages:

• Simpler and faster to establish than a subsidiary
• Maintains the parent company’s existing legal identity
• Lower initial setup costs
• Profits and losses flow directly to the parent — Australian losses may be offset against the parent’s global income (subject to home country tax rules)
• No dividend withholding tax on remitting profits to the parent company

Disadvantages:

• The foreign parent retains full legal liability for all Australian operations
• Requires a local agent — an Australian resident individual responsible for ASIC compliance
• May be perceived as a “foreign” entity by Australian clients, banks, and government agencies

Best for: Companies testing the Australian market, executing a specific project, or seeking a lower-cost initial entry point.

Learn more: Branch Establishment Services

Option 2: Australian Subsidiary (Pty Ltd Company)

An Australian subsidiary is a separate legal entity — typically a proprietary limited (Pty Ltd) company — incorporated under the Corporations Act 2001. The subsidiary receives its own Australian Company Number (ACN) and operates as an independent Australian company, even though it is wholly owned by the foreign parent.

Advantages:

• Limited liability — the parent company’s exposure is generally limited to its investment in the subsidiary
• Perceived as a local Australian business, which can improve relationships with clients, banks, and government agencies
• Easier to open Australian bank accounts
• Independent governance structure with its own board of directors
• More attractive for securing government contracts and tenders

Disadvantages:

• Requires at least one resident director who ordinarily resides in Australia
• Higher setup and ongoing compliance costs
• Australian subsidiary losses cannot be offset against the parent company’s income
• Dividend withholding tax may apply when distributing profits to the foreign parent (reduced under double tax agreements)

Best for: Companies committed to the Australian market long-term, those seeking liability protection, and businesses that want to be seen as a local entity.

Learn more: Company Formation Services

Option 3: Representative Office

A representative office is a non-trading presence used strictly for market research, liaison, and promotional activities. A representative office cannot generate revenue, enter into contracts, or conduct commercial transactions in Australia. It is occasionally used by foreign companies in the very early stages of exploring the Australian market, but it is not a viable option for any business that intends to trade.

Comparison: Branch vs Subsidiary vs Representative Office

Step-by-Step Registration Process for Foreign Companies

Once you have decided on the right structure, the foreign company registration process in Australia follows a clear sequence. Here is the step-by-step process for getting your business set up and operational.

Step 1: Decide on Your Business Structure

Choose between a branch office and a subsidiary based on your liability preferences, tax strategy, long-term plans, and budget. If you are uncertain, a professional adviser can model both options and recommend the best fit for your circumstances. Review our guide to registering a business in Australia for a detailed comparison.

Step 2: Apply for Director Identification Numbers (Director IDs)

Since 2022, all directors of Australian companies and registered foreign companies must hold a Director Identification Number (Director ID). This is a unique identifier introduced to improve transparency and combat illegal phoenixing. Director IDs must be obtained before lodging any registration application with ASIC. Foreign-based directors can apply through the Australian Business Registry Services (ABRS) portal.

Step 3: Appoint a Local Agent or Resident Director

This is one of the most important steps when you start a business in Australia as a foreigner:

• Branch office: You must appoint a local agent — an Australian resident individual who accepts legal responsibility for the company’s compliance with the Corporations Act.
• Subsidiary: You must appoint at least one resident director who ordinarily resides in Australia.

Many foreign companies engage a professional service provider such as AusBusinessRegister to fulfil these roles, ensuring the position is held by someone with detailed knowledge of Australian regulatory obligations.

Step 4: Prepare and Certify Your Documents

You will need certified copies of key corporate documents from your home jurisdiction, including:

• Certificate of incorporation or equivalent registration document
• Constitution, memorandum and articles of association, or equivalent governing document
• A list of current directors with full personal details
• Details of share capital and shareholders

All documents must be certified by a notary public, solicitor, or equivalent professional. Documents not in English require certified translations by a qualified translator.

Step 5: Register with ASIC

Lodge your application with the Australian Securities and Investments Commission:

• Branch office: Lodge ASIC Form 402 along with all supporting documents. ASIC will issue an ARBN upon approval (typically 2-4 weeks).
• Subsidiary: Lodge ASIC Form 201 to register a new proprietary limited company. ASIC will issue an ACN (typically 1-3 business days).

Step 6: Apply for an ABN

Once you have your ARBN or ACN, apply for an Australian Business Number (ABN) through the Australian Business Register. An ABN is essential for invoicing, tax compliance, and dealing with other Australian businesses. AusBusinessRegister handles ABN and GST registration as part of our setup packages.

Step 7: Register for GST (If Applicable)

If your Australian business turnover will exceed $75,000 per year (or $150,000 for not-for-profits), you must register for the Goods and Services Tax (GST). GST registration can be completed at the same time as your ABN application. Even if your turnover is below the threshold, voluntary registration may be beneficial as it allows you to claim input tax credits.

Step 8: Open a Business Bank Account

You will need an Australian business bank account to receive payments, pay suppliers, and manage your finances. Australian banks have strict identification and verification requirements for foreign-owned entities. A professional registration service can facilitate banking introductions and help you navigate the process — AusBusinessRegister provides banking support as part of our company formation packages.

Step 9: Set Up a Registered Office Address

Every Australian company and registered foreign company must maintain a physical registered office address in Australia. This cannot be a PO Box. The registered office is where ASIC correspondence and legal documents are served. If your business does not have a physical office in Australia, a registered office service provides a compliant address.

Key Requirements for Foreign Business Owners

Beyond the registration process itself, there are several ongoing requirements that foreign business owners must understand and plan for. Failing to meet these requirements can result in penalties, compliance breaches, or operational disruption.

FIRB Approval

The Foreign Investment Review Board (FIRB) screens certain foreign investments to ensure they are not contrary to Australia’s national interest. FIRB approval is required when investments exceed specific monetary thresholds:

• General business investments: $1,498 million for investors from FTA countries; $347 million for non-FTA countries
• Sensitive sectors: Lower thresholds apply for media, telecommunications, defence, critical infrastructure, and agricultural land
• Residential real estate: All foreign purchases of residential property require FIRB approval regardless of value

Most standard company registrations and small-to-medium business setups do not trigger FIRB requirements. However, you should seek professional advice if your investment is significant or involves a sensitive sector.

Resident Director

Every Australian proprietary limited (Pty Ltd) company must have at least one director who ordinarily resides in Australia. This is a mandatory requirement under the Corporations Act 2001. Foreign business owners who do not plan to relocate to Australia typically appoint a professional resident director or nominee director to satisfy this obligation.

Local Agent

Every foreign company registered as a branch office in Australia must appoint a local agent. The local agent must be an Australian resident individual (not a company) and bears personal legal responsibility for the foreign company’s compliance with the Corporations Act. This includes lodging documents with ASIC, maintaining the registered office, and notifying ASIC of changes to company details.

Registered Office

A physical registered office address in Australia is mandatory for both branch offices and subsidiaries. The address must be a street address — PO Boxes are not acceptable. This is where ASIC correspondence and legal documents will be served.

Director Identification Number (Director ID)

All directors, including foreign-based directors, must hold a Director ID. This requirement was introduced in 2022 and applies to directors of both Australian companies and registered foreign companies. Applications are made through the Australian Business Registry Services (ABRS) portal, and directors must verify their identity as part of the process.

Tax Obligations

Once your business is operational, you will have several tax obligations to manage:

• Tax File Number (TFN): Required for lodging tax returns
• GST: Mandatory if annual turnover exceeds $75,000
• PAYG Withholding: Required if you employ staff in Australia — you must withhold tax from employee wages
• Superannuation: Employers must contribute superannuation (currently 11.5%) for eligible employees
• Payroll tax: Levied by state and territory governments once your payroll exceeds state-specific thresholds

Visa Considerations for Foreign Business Owners

An important distinction that many foreign business owners overlook: you do not need a visa to own an Australian company. You only need a visa if you intend to live and work in Australia personally.

Many foreign business owners manage their Australian operations entirely from overseas, relying on a resident director and local agent to handle on-the-ground regulatory obligations. This remote management model is common and well-supported by Australian corporate law.

If you do wish to relocate to Australia to manage your business, the main visa pathways include:

• Business Innovation and Investment (subclass 188) visa: Designed for experienced business owners and investors who want to establish or manage a new or existing business in Australia. Requires a minimum turnover and net asset threshold.
• Business Innovation and Investment (subclass 888) visa: The permanent visa pathway for holders of the subclass 188 visa who have successfully operated their business in Australia.
• Investor visas: For individuals making significant financial investments in Australia (typically $2.5 million or more in complying investments).

Visa requirements are complex and change frequently. We strongly recommend consulting a registered migration agent or immigration lawyer for personalised advice on your visa options. AusBusinessRegister can refer you to trusted immigration professionals within our network.

Costs of Setting Up a Foreign Business in Australia

Understanding the costs involved in foreign company registration in Australia helps you budget effectively. The table below provides indicative cost ranges for a typical foreign company setup in 2026.

Costs vary depending on the complexity of your corporate structure, the number of documents requiring certification and translation, and the level of ongoing support you require.

Common Mistakes Foreign Companies Make

From our experience helping hundreds of foreign companies set up in Australia, the following mistakes come up repeatedly. Avoiding these pitfalls can save you significant time, money, and frustration.

1. Choosing the Wrong Business Structure

Many foreign companies default to a branch office because it seems simpler, only to discover later that a subsidiary would have been the better choice for their needs — particularly when it comes to liability protection, banking access, and client perception. Conversely, some companies incorporate a subsidiary when a branch would have been more tax-efficient. The structure decision should be made with professional advice, not assumed.

2. Not Appointing a Local Agent or Resident Director Before Registration

These appointments must be in place at the time of lodging your ASIC application. They cannot be arranged retrospectively. Foreign companies that overlook this requirement face delays and rejected applications. Engaging a professional provider like AusBusinessRegister early in the process ensures these appointments are ready when you need them.

3. Underestimating Ongoing Compliance

Registration is not a one-and-done exercise. Both branches and subsidiaries have annual obligations including ASIC annual review fees, tax returns, BAS lodgements, and notification of changes to company details. Foreign companies that focus solely on getting registered and then neglect compliance risk penalties, late fees, and ultimately deregistration.

4. Not Registering for GST When Required

If your Australian turnover exceeds $75,000 per year, GST registration is mandatory — not optional. Failing to register when required exposes you to back-dated GST liabilities and penalties from the Australian Taxation Office. It is better to register early and be compliant from day one.

5. Trying to DIY Without Understanding Australian Corporate Law

The Australian regulatory environment is well-structured but detailed. Foreign companies unfamiliar with ASIC’s requirements, the Corporations Act, and ATO obligations frequently make errors that result in rejected applications, compliance breaches, or structural decisions that are difficult and costly to unwind. Professional guidance from a specialist like AusBusinessRegister pays for itself many times over.

6. Not Obtaining Director IDs Before Applying

The Director Identification Number requirement catches many foreign companies off guard. Every director named in the ASIC application must already hold a Director ID before the application is lodged. The application process for foreign-based directors can take several weeks, so this should be started well in advance.

Why Use a Professional Registration Service?

While it is technically possible for a foreigner to register a business in Australia independently, the process involves navigating unfamiliar regulations, preparing specific ASIC forms, certifying documents across jurisdictions, and managing ongoing compliance obligations. A professional registration service streamlines the entire process and provides peace of mind.

Benefits of working with a professional service:

• Expert navigation of ASIC requirements — avoid rejected applications, incomplete filings, and compliance gaps
• Avoid costly mistakes and delays — proper structure selection, correct documentation, and timely lodgement
• Ongoing compliance support — annual reviews, change notifications, tax obligations, and regulatory updates
• All-in-one service — company formation, resident director, local agent, registered office, ABN/GST registration, and banking support under one roof
• Local expertise — an Australian-based team that understands both the regulatory landscape and the practical realities of setting up a foreign business

AusBusinessRegister has helped hundreds of foreign companies establish and maintain their Australian presence over 40+ years. From initial structure advice through to registration, appointments, tax setup, and ongoing compliance, we provide a complete, end-to-end service that allows you to focus on what matters most — growing your business in Australia.

Frequently Asked Questions

Can I start a business in Australia without being a citizen?

Yes. There is no requirement to be an Australian citizen or permanent resident to start a business in Australia. Foreign nationals and foreign companies can register a branch office, incorporate an Australian subsidiary (Pty Ltd), or register for an ABN. You will need to meet certain requirements such as appointing a local agent (for branches) or a resident director (for subsidiaries), but ownership is open to foreigners without restriction in most sectors.

Do I need to live in Australia to own an Australian company?

No. You can own an Australian company while living overseas. However, if you incorporate a proprietary limited (Pty Ltd) company, it must have at least one director who ordinarily resides in Australia. Many foreign business owners appoint a professional resident director or nominee director to meet this requirement while managing the business remotely from their home country.

How long does foreign company registration take?

The timeline depends on the structure you choose. Incorporating a new Australian subsidiary (Pty Ltd) can be completed in 1 to 3 business days once all documents are in order. Registering a branch office (foreign company registration under Part 5B.2) typically takes 2 to 4 weeks, as ASIC requires certified copies of overseas corporate documents. In both cases, obtaining an ABN usually takes a few additional business days.

Do I need FIRB approval?

Most standard company registrations do not require Foreign Investment Review Board (FIRB) approval. FIRB approval is required when foreign investments exceed certain monetary thresholds — currently $347 million for non-FTA country investors, or $1,498 million for FTA country investors. Lower thresholds apply to sensitive sectors such as media, telecommunications, defence, and agriculture. Consult a professional adviser to determine whether your specific investment triggers FIRB requirements.

What is a local agent and do I need one?

A local agent is an Australian resident individual who is legally appointed to ensure a registered foreign company (branch office) complies with its obligations under the Corporations Act 2001. The local agent is responsible for lodging documents with ASIC, maintaining the registered office, and notifying ASIC of changes to company details. Every foreign company branch registered in Australia must have a local agent at all times. Subsidiaries do not require a local agent but must have a resident director instead.

Can I open a bank account for my Australian business remotely?

Opening an Australian business bank account remotely is possible but can be challenging. Most major Australian banks prefer to verify the identity of directors and signatories in person or through an Australian-based representative. A professional registration service can assist with the banking introduction process and help you navigate the identification requirements that banks impose on foreign-owned entities. AusBusinessRegister includes banking support in our company formation packages.