Foreigners can fully own an Australian business without relocating, but most overseas founders must register a Pty Ltd company, appoint at least one Australian-resident director, maintain a registered office, and meet ongoing ASIC and ATO obligations from day one.
Starting a business from overseas involves more than ASIC registration; banking, Director IDs, ABN/TFN/GST setup, nominee director responsibilities, and ATO public officer rules are the real friction points that delay or derail foreign-owned companies.
Starting a business in Australia as a foreigner typically costs between AUD 1,500 and AUD 6,000+, depending on how incorporation and ongoing compliance requirements are met. These costs are shaped not just by registration, but by the need to maintain compliant directors, addresses, tax registrations, and reporting over time.
Thinking of expanding in Australia? For many global founders, the hardest part isn’t the business idea, it’s figuring out how to start a business as a foreigner in Australia without getting tripped up by resident director rules, banking roadblocks, or ATO compliance.
The good news? Australia is one of the most business-friendly economies in the world and this guide shows you the exact steps to start a business here as a foreigner, from choosing the right structure to staying compliant with ASIC and the ATO, and how Sleek helps you get there faster.
If you’re comfortable coordinating ASIC, the ATO, banking, and ongoing compliance from overseas, you can register and manage an Australian Pty Ltd company independently by meeting all structural and reporting requirements.
If you prefer speed and certainty, Sleek handles company setup, director and address requirements, tax registrations, and banking readiness so your business can launch in Australia without delays.
Can a foreigner start a business in Australia?
Yes, you can absolutely start a business as a foreigner in Australia. The rules make it possible, but there are a few you can’t skip.
The biggest one? Every company needs at least one resident director. That doesn’t mean you need to move to Australia, it just means someone who already lives here must sit on your board. If you don’t have a local partner, you’ll need a nominee director, which many overseas founders arrange through a service provider like Sleek.
So while the door is wide open, the key is understanding the structure and compliance steps before you dive in.
Let us uncover 10 steps to starting a business as a foreigner in Australia.
Step 1: Choose the right business structure
As a foreigner, you’ve got a couple of options, but not all of them will suit you.
Most of the time, the best fit business structure for foreigners is Proprietary Limited (Pty Ltd).
- Proprietary Limited (Pty Ltd) company: Pty Ltd is one of the most popular choices. It’s flexible, trusted internationally, and lets you apply for an ABN, TFN, GST, and PAYG.
- Foreign company (branch): If you already run a company overseas and just want to set up a branch here. However, it involves heavier reporting as you must appoint a local agent and maintain a registered office.
- Sole trader/partnership: It is usually off the table for foreigners unless you live here.
Best fit for 90% of overseas founders: Proprietary Limited (Pty Ltd). Why?
- Globally recognised, limited liability, easy to open accounts, hire, invoice, and scale.
- Lets you obtain ACN, ABN, TFN, and register for GST/PAYG
Pro tip: Skip sole trader/partnership unless you’re moving here full-time, non-residents generally can’t run these
Step 2: Meet the resident director rule
This is the step that stops many founders in their tracks.
Every proprietary limited company in Australia must have at least one director who “ordinarily resides” in Australia. That means someone who lives here permanently, not someone on holiday or a short-term visa.
- If you already have a partner here, they can take that role.
- If not, you’ll need a nominee director. They aren’t just a name on paper; they share full legal responsibilities for the company. Which means you need to choose someone credible.
Don’t have anyone in the country? No stress. Consider using a Nominee Director Services like Sleek so you don’t have to pause your expansion plans.
Step 3: Choose a business name
A good business name helps you create a strong brand. A unique and catchy business name is easy for customers to remember and helps them recommend to others and find it online.
Here’s what to know:
- You’ll need to check your desired name is available with ASIC (the corporate regulator).
- If your business name is different from your legal company name, you’ll need to register it separately.
- Planning to protect your brand? Consider trademarking it with IP Australia.
Step 4: Get a registered office address (No PO boxes allowed)
You’ll need a physical address in Australia for your company’s registered office. This is where ASIC will send all official notices, so it must be real and monitored.
If you don’t want to rent a physical space, you can go with a virtual registered office instead, trusted providers like Sleek offer this service which also takes care of mail handling so you stay compliant with ASIC rules.
Step 5: Apply for your director ID (DIN)
Every director of an Aussie company, including foreign ones, must have a Director Identification Number (DIN).
This is a government-issued ID that tracks who’s in charge of what companies (and helps prevent fraud or phoenixing).
If you’re not an Australian citizen or resident, you’ll apply using your passport and verified foreign documents.
Step 6: Register your business with ASIC
To legally operate, you must complete company registration in Australia for foreigners through ASIC (the corporate regulator).
Once you’ve got your name, director(s), and address sorted, it’s time to make it official.
We register your company with ASIC (Australia’s business regulator) and handle all the paperwork. You’ll receive:
- An ACN (Australian Company Number)
- A certificate of registration
- Company setup docs and constitution
As of 2025, ASIC charges:
- AUD $611 to register a company
- AUD $329 per year as an annual review fee
Step 7: Apply for ABN, TFN, and register for GST if Needed
Once your company is live, you’ll need to register with the Australian Taxation Office (ATO). Here’s what’s what:
- ABN: You’ll use Australian Business Number (ABN) for invoicing and identifying your business to government bodies.
- TFN: A Tax File Number is your company’s unique tax ID for corporate income tax.
- GST: You must register for Goods and Services Tax if your business earns over AUD $75,000/year, but you can register earlier if you want.
- PAYG withholding: If you’re going to hire employees or pay contractors, you’ll need PAYG to withhold and report PAYG taxes on their behalf.
- Public officer: The ATO requires that your company appoint an Australian-resident public officer within 3 months of starting. This person is the ATO’s go-to contact for all things tax.
This step is essential for anyone asking how to open a business as a foreigner in Australia, as tax registration errors are one of the most common compliance issues for non-residents.
Step 8: Open an Australian business bank account
Now you’ll want an Aussie bank account to receive payments, pay expenses, and handle taxes.
Opening one as a non-resident can be a bit more complex, banks require:
- Proof of identity for all directors and shareholders
- Company formation documents
- Tax registration numbers (ABN, TFN)
- Business purpose and ownership details
There are two options in this:
- Traditional banks: expect ID checks and slower setup.
- Fintechs like Airwallex: 100% online, multi-currency accounts that work globally.
Banking is a major friction point when starting a business in Australia for foreigners. Sleek works with banking partners who understand overseas-owned companies and helps you prepare the exact documents upfront, so your account gets approved faster, without the guesswork.
Step 9: Want to hire employees? Here’s what to do
Planning to grow your team on the ground in Australia? Make sure you’re set up properly.
Here’s your employer checklist:
- Register for Single Touch Payroll (STP): This is mandatory and reports employee earnings in real-time to the ATO.
- Set up Superannuation: You’ll need to contribute 12% of each employee’s earnings to their super fund.
- Register for Workers’ Comp Insurance: This is compulsory and handled differently in each state.
- Comply with Fair Work Laws: The national employment standards (NES) apply to all workers, regardless of business size.
Step 10: Get the right licences and permits
Here’s something many first-time founders overlook, you might need licences, permits, or approvals to legally operate your business in Australia.
This doesn’t just apply to high-risk industries. Even everyday businesses, like cafes, tradies, childcare providers, eCommerce stores, and financial services, may need to register with state or local authorities before they can legally open their doors.
The specific approvals you need depend on:
- Your business type and daily activities
(Are you selling food? Offering financial advice? Operating machinery?) - Which state or territory you’re in
(Each state has its own regulators and rules.) - Your local council area
(Even signage or outdoor seating might require a permit.)
To figure out what applies to you, use the Australian Business Licence and Information Service (ABLIS). It’s a free tool that helps you search for all relevant licences based on your industry and location.
Still unsure?
You can also reach out to your industry association or speak to a qualified business adviser. They’ll often have experience guiding businesses just like yours and can give you tailored advice, especially if you’re in a regulated sector.
Starting a business in Australia as a foreigner works best when treated as a sequenced compliance process, not a single registration step. Structure, director requirements, tax setup, and banking must be handled in the right order to avoid delays later.
Most issues arise when these steps are rushed or done out of sequence, leading to blocked bank accounts, rework, or compliance fixes that slow expansion.
How much does it cost to start a business in Australia as a foreigner?
Starting a business in Australia as a foreigner typically costs between AUD 1,500 and AUD 6,000+, depending on how you meet local compliance requirements such as a registered office address, resident director obligations, and tax setup.
Item | What it covers | Cost (AUD) | When it applies |
ASIC company registration fee | Registering a proprietary limited company | $611 | One-off |
ASIC annual review fee | Annual ASIC compliance and review | $329 | Annual |
Registered office address | ASIC-compliant registered office in Australia | Varies | Ongoing |
Resident director solution | Meeting Australian resident director requirement | Varies | Ongoing |
Accounting & tax setup | ABN, TFN, GST (if applicable), bookkeeping setup | Varies | Setup and ongoing |
Industry licences & permits | Sector-specific approvals (if required) | Varies | Depends on industry |
While the ASIC fees are fixed, the total cost depends on how your business is structured and whether you need ongoing compliance support to meet Australian company law and tax obligations.
What are the taxes and compliance for foreign-owned companies in Australia
Foreign-owned companies in Australia are subject to the same tax and regulatory framework as Australian-owned companies, but additional care is required where ownership, management, or operations sit outside Australia.
Once the company is registered, ongoing compliance typically falls into three core areas: company tax, GST (if applicable), and ASIC reporting.
1. Company tax obligations
Most Australian companies pay either 25% or 30% company tax, depending on whether they qualify as a base rate entity for the relevant income year.
How company tax generally applies to foreign-owned businesses
Tax area | What it means | What to be aware of |
Company tax rate | 25% (base rate entities) or 30% | Eligibility is assessed each year based on income type and turnover |
Company tax residency | Determines how income is taxed | Residency depends on incorporation and where management and control occur |
Profit distributions | Dividends paid to shareholders | May trigger withholding tax for non-resident shareholders |
Company tax is assessed annually, so foreign-owned businesses should review their eligibility and structure regularly rather than assuming the same treatment applies every year.
2. GST registration and reporting
GST applies based on turnover and business activity, not ownership nationality.
You must register for GST if your business has, or expects to have, GST turnover of AUD 75,000 or more.
GST situation | Is GST registration required | Impact |
Turnover ≥ $75,000 | Yes | Must charge GST and lodge BAS |
Expected to reach $75,000 | Yes | GST obligations apply from registration date |
Below $75,000 | Optional | Registration adds compliance but allows GST credits |
Once registered, GST creates ongoing reporting obligations through Business Activity Statements (BAS), so systems for invoicing and record-keeping need to be in place early.
3. Ongoing ASIC and administrative compliance
In addition to tax obligations, every Australian company, including foreign-owned companies, must meet ASIC compliance requirements.
Obligation | What’s required | Frequency |
ASIC annual review | Review company details and pay annual fee | Annual |
Address updates | Keep registered office and principal place of business current | As changes occur |
Director and shareholder changes | Notify ASIC of appointments or cessations | Within required timeframes |
Record-keeping | Maintain company registers and records | Ongoing |
Most compliance issues arise not at setup, but when company details fall out of date or reporting becomes irregular.
4. Employment and payroll obligations (if applicable)
If the company employs staff in Australia, additional obligations apply:
- PAYG withholding
- Superannuation contributions
- Single Touch Payroll (STP) reporting
These obligations apply regardless of whether the owners are Australian or foreign residents.
Hiring staff significantly increases compliance complexity, so payroll and reporting systems should be set up before the first employee starts.
For foreign founders, the real risks aren’t incorporation costs but missed compliance steps, such as residency rules, incorrect tax registrations, or failed bank onboarding. These issues can stall operations or trigger costly fixes later.
Approaching setup with the right structure and compliance order from the start significantly reduces risk as the business grows.
Starting from Overseas? Sleek’s got your back
Setting up a company from overseas can feel overwhelming, different laws, local director rules, tax registrations, and visa requirements. At Sleek, we remove the roadblocks so you can focus on growing your business, not wrestling with red tape.
Here’s how we help you launch smoothly:
- Fast company setup: Register your company with ASIC, secure your ACN, and get your ABN, TFN, GST, and PAYG sorted so you can start trading right away.
- Meet local requirements: Fulfil residency rules with a compliant nominee director, and establish credibility using our registered office address and ASIC agent service.
- Visa and compliance support: Access guidance on the right visa pathway for your situation, while staying compliant with ASIC filings, BAS, bookkeeping, and tax returns.
- Scale confidently: From payroll and STP to superannuation, we make it simple to hire and pay staff legally as your business grows.
Wherever you’re based, Sleek gets your Australian company up and running 100% online, compliant, and investor-ready.
Don’t let distance and compliance slow you down. Your Australian company can be up and running in days, not months. Stay focused on growth, while we handle compliance. Start your journey today with Sleek.
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Frequently Asked Questions
Can I own 100% of a company in Australia as a foreigner?
Yes. Australia allows full foreign ownership of companies. You can hold 100% of the shares, but you must still meet local requirements like appointing at least one resident director and having a registered office address in Australia.
How do tax residency rules affect my Australian company if I am based overseas?
Even if you’re a non-resident, your Australian company will be treated as a tax resident in Australia if it is incorporated here. That means it must lodge tax returns with the ATO and pay Australian corporate tax on its worldwide income. However, international tax treaties may help reduce double taxation if you also pay taxes in your home country.
Do I need an Australian partner to start a business?
No. You don’t need a local partner or shareholder. The only requirement is having one Australian-resident director to satisfy ASIC rules. If you don’t know anyone locally, you can use a nominee director service like Sleek.
