- Australia has no LLC; the local equivalent is a Pty Ltd company
- Foreigners can own 100% of an Australian Pty Ltd
- A Pty Ltd pays company tax at 25% or 30%, not pass-through tax
- Every Pty Ltd needs at least one Australian-resident director
If you’re searching for an Australian LLC, here’s the short answer: Australia has no limited liability company structure. The local equivalent is the Pty Ltd, or proprietary limited company, and it gives you the same limited liability as a US LLC. Foreigners can own 100% of one, and you can register your Pty Ltd from overseas without ever flying in.
Most founders looking for an LLC in Australia miss one rule, though. Every Pty Ltd needs at least one director who ordinarily lives in Australia, and that requirement, not ownership, shapes your whole setup.
LLC vs Pty Ltd: how do the two structures compare?
Both structures protect your personal assets, but the LLC vs Pty Ltd comparison splits on tax, directors and where you register. Here’s how a US limited liability company lines up against its Australian counterpart.
Feature | LLC (United States) | Pty Ltd (Australia) |
|---|---|---|
What it is | Limited liability company, a flexible hybrid entity | Proprietary limited company, a true company |
Owners are called | Members | Shareholders |
Liability protection | Limited to members’ contributions | Limited to any amount unpaid on your shares |
How it’s taxed | Usually pass-through to members’ personal returns | Company tax at 25% (base rate entity) or 30% |
Foreign ownership | Generally allowed | 100% foreign ownership allowed |
Local director required | No residency rule for members or managers | Yes, at least one Australian-resident director |
Registered with | The state you form in | ASIC, one national registration |
Registered address | A registered agent address in the formation state | A physical Australian address, not a PO Box |
The tax row is where copying US logic goes wrong. On tax, Pty Ltd vs LLC isn’t close: a Pty Ltd files its own return and pays company tax, with the 25% base rate available when aggregated turnover is under A$50 million and no more than 80% of income is passive. When profits reach you as dividends, franking credits recognise the company tax already paid, and fully franked dividends to non-resident shareholders are generally free of dividend withholding tax.
Can a foreigner own an Australian company?
Yes. Foreign individuals and foreign companies can own every share in a Pty Ltd, and there’s no residency rule for shareholders.
What trips people up is treating ownership and directorship as one question. You can hold 100% of the shares from New York or London, but the board still needs a local resident. Foreign Investment Review Board approval only comes into play for larger acquisitions of Australian land, businesses or assets above set thresholds, not for starting a new company.
Who can be your Australian resident director?
The resident director rule is the biggest practical difference in any LLC vs Pty Ltd decision. Section 201A of the Corporations Act 2001 requires every proprietary company to have at least one director who ordinarily resides in Australia.
There’s no exemption for wholly foreign-owned companies, and a local address on its own doesn’t satisfy it. Overseas founders usually fill the seat in one of four ways:
- A co-founder or business partner who already lives in Australia.
- A senior hire or country manager based locally.
- A trusted contact who is willing to take on a director’s legal duties.
- A nominee resident director supplied by a corporate services provider.
A nominee meets the legal requirement without running your business. With Sleek’s nominee service, the director is non-executive, holds no shares and has no access to your business bank accounts, so commercial decisions stay with you. Before you choose, understand how resident director services work and what the nominee is legally responsible for.
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What do you need to register a Pty Ltd from overseas?
The paperwork is lighter than most founders expect, and none of it needs you in the country. Before a new Pty Ltd can trade, it needs:
- A company name that’s free on the ASIC register and ends in “Pty Ltd”.
- At least one resident director, plus any overseas directors you want on the board.
- A Director ID for every director, in place before they’re appointed.
- A registered office, which must be a physical Australian address for ASIC and ATO mail.
- Shareholder details, including any foreign parent company that will hold the shares.
- An ACN, ABN and TFN. ASIC issues the ACN at registration, while the ACN and ABN serve different purposes.
- GST registration once GST turnover reaches A$75,000 a year (GST is 10%), or earlier if you choose.
- A public officer, the company’s contact with the ATO, usually the resident director.
Sleek’s overseas registration covers the name check, ASIC lodgement, company documents and the ABN, TFN and GST applications, and can supply the resident director and registered address. If you’re also planning visas, banking or hiring, the wider picture of starting a business as a foreigner in Australia is worth mapping out early.
How much does it cost to set up a Pty Ltd from overseas?
Government fees are fixed and fairly small. From 1 July 2026, ASIC charges A$636 to register a Pty Ltd and A$342 a year for the annual review that keeps it on the register. Pay the review late and ASIC adds A$102, rising to A$428 after a month.
The bigger cost for an overseas founder is the local presence the law requires. Sleek’s overseas packages start from:
- International company registration: from A$1,325 one-time, plus ASIC fees.
- Nominee resident director: from A$7,500 a year.
- Registered address and digital mailroom: from A$300 a year.
- Accounting and tax: from A$1,800 per financial year.
- Australian Expansion package (registration, address, nominee director and yearly accounting): from A$10,130, plus ASIC fees.
Prices may vary with current promotions, so check the latest on the overseas registration pricing page. ASIC fees don’t attract GST.
Should your US LLC register in Australia or set up a subsidiary?
If you already run a US LLC, there are two ways to operate that LLC in Australia. You can register the LLC itself with ASIC as a foreign company, or incorporate a new Pty Ltd that the LLC owns.
- Registered foreign company: the LLC gets an ARBN, appoints a local agent and lodges financial statements with ASIC, and your US entity stays directly exposed to Australian liabilities.
- Pty Ltd subsidiary: a separate Australian company with its own limited liability, owned 100% by your LLC, which local customers, banks and staff generally find easier to deal with.
Most founders choose the subsidiary because it ring-fences Australian risk and is simpler to run, and it’s worth understanding how a foreign parent can own an Australian subsidiary before you decide. Whichever route you take, ask your US tax adviser how the IRS will treat an Australian company owned by a US person, because that shapes your US reporting.
How Sleek helps with your Australian LLC setup
Once the Pty Ltd vs LLC question is settled, Sleek registers your company from overseas end to end: ASIC lodgement, company documents, ABN, TFN and GST applications, plus the nominee resident director and Sydney registered address you need to stay compliant. You deal with one team, online, from wherever you’re based.
Once you’re trading, our accountants for Australian companies handle BAS, tax returns and the ASIC annual review so nothing lapses while you’re offshore. Already living in Australia? You don’t need the overseas setup, and standard company registration is the quicker, cheaper route for you.
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Frequently Asked Questions
Can I use “LLC” in my Australian company name?
No. LLC isn’t a recognised Australian company type, so a proprietary company’s name must end in “Pty Ltd” or “Proprietary Limited”. Most founders register the Pty Ltd under their core brand name and trade under that.
How long does it take to register a Pty Ltd from overseas?
ASIC usually issues the ACN within a day of lodgement. The ABN and TFN typically follow within a couple of days, though the ATO can take longer to check a company with foreign shareholders. The real delays come from finding a resident director and getting Director IDs sorted, so start those first.
Can I open an Australian business bank account from overseas?
Some traditional banks ask directors to verify their identity in person, which is hard to do from abroad. Digital business accounts are usually faster for overseas founders, and Sleek’s international registration includes a free Airwallex business account and Visa card, subject to terms and conditions.
What happens if my resident director resigns?
The company must have a resident director at all times, so line up a replacement before the resignation takes effect. Any change of director must be notified to ASIC within 28 days.
Does a Pty Ltd need a company secretary?
No. Proprietary companies don’t have to appoint a secretary. If you do appoint one, at least one secretary must ordinarily reside in Australia.
How long does it take to set up an Australian company?
Registration itself can be completed within a few business days once your director details and Director Identification Numbers are ready. Delays usually come from sourcing a resident director or obtaining a Director ID, not from ASIC processing. Planning these steps early keeps the timeline tight.
What is the difference between a Pty Ltd and a public company?
A proprietary company is limited to 50 non-employee shareholders and can’t raise money from the general public. A public company (Ltd) can list on a stock exchange but carries heavier reporting duties, which is why most overseas founders start with a Pty Ltd.
