- Every Pty Ltd needs at least one director who normally lives in Australia
- Without a resident director, ASIC won’t register your company
- Sleek can act as your resident director if you have no local one
- Sleek’s resident director service starts from A$2,500 a quarter
If you’re weighing up resident director services, start with the rule: under the Corporations Act 2001, every Australian Pty Ltd company must have at least one director who ordinarily resides in Australia, and you cannot register with ASIC without one. For founders expanding to Australia from overseas, this is often the first major hurdle to incorporation.
Sleek can clear it for you. We can act as your resident director, or work with one you already have, then register your company with ASIC and keep it compliant with its ongoing obligations.
In this guide, we explain who qualifies as a resident director, the legal responsibilities involved, what happens if you don’t appoint one, and how foreign founders can meet the requirement correctly and confidently.
How can Sleek act as your resident director?
If nobody on your team normally lives in Australia, Sleek can fill the role. Here’s what our resident director service includes:
- Who you get: a qualified director who normally lives in Australia and holds a director ID.
- Their role: non-executive. They’re appointed so your company meets ASIC’s residency requirement.
- What they don’t do: make business decisions, hold shares or access your business bank accounts.
- How it’s set up: under a service agreement, so you keep full control of your company.
- Price: from A$2,500 a quarter or A$7,500 a year (GST inclusive), with 3-month, 6-month or yearly billing.
- Bundle option: included for 12 months in our Australian Expansion package, from A$10,130 plus ASIC fees.
How long does it take to get a resident director with Sleek?
Once your onboarding is complete, Sleek usually registers your company with a local resident director within 24 to 48 hours. Onboarding includes identity checks, so having your documents ready keeps things moving.
What documents do you need to appoint a resident director with Sleek?
Sleek’s KYC team checks your identity before the appointment. You’ll need:
- Two identity documents, such as a valid passport, a driver’s licence, an international passport with a valid Australian visa, or a Medicare card
- One proof of residential address, such as a utility bill, a council rates notice, a bank statement or an ATO notice of assessment
Why do foreign founders need an Australian resident director?
Because Australian law requires every Pty Ltd to have at least one director who normally lives in Australia, and ASIC won’t register the company without one. Most overseas founders don’t have anyone here who can legally take that role, so they need a local partner or a professional resident director service.
Under Australian law, every proprietary limited (Pty Ltd) company must have at least one director who “ordinarily resides” in Australia. It’s mandatory as it defines how the government ensures there’s a locally accountable individual for compliance, tax, and regulatory communication.
Here’s why this role matters:
- Legal accountability: A resident director acts as the company’s local representative before ASIC and the ATO, ensuring statutory deadlines and reporting obligations are met.
- Business legitimacy: Having a local director demonstrates that your company is genuinely carrying on business in Australia.
- Risk management: The resident director can be personally liable if the company breaches certain obligations, which is why appointing a qualified professional is crucial.
- Incorporation requirement: Without an Australian-resident director, your company cannot be incorporated under ASIC, the system simply won’t allow you to proceed.
For foreign founders, this raises big questions:
- Who can I appoint?
- What if I don’t know anyone locally?
- Can I use a service instead?
Below, we set out your options so you can meet the requirement correctly and launch with confidence.
What is an Australian resident director, and why is it legally required?
Under the Corporations Act 2001, every proprietary (Pty Ltd) company must have at least one director who ordinarily resides in Australia, and a public company needs at least three directors, two of whom normally live here. This rule ensures that ASIC and the ATO always have a locally accountable representative for compliance, communication, and official correspondence.
In simple terms, a resident director is a person who:
- Is at least 18 years old
- Normally lives in Australia (where they live counts, not their citizenship)
- Is not disqualified from managing a company
This requirement applies even if your company is 100% foreign-owned, you cannot complete ASIC registration without appointing a qualified Australian resident director.
Who qualifies as an Australian resident director (and who doesn’t)
To qualify, a person must:
- Normally live in Australia, whether as a citizen, permanent resident or holder of a long-term visa
- Be legally eligible (not disqualified under ASIC rules)
Who doesn’t qualify:
- Anyone living overseas full-time, even if they make short visits to Australia
- Anyone without a valid Australian residency status
While you could ask a local acquaintance to take on the role, it’s a high-responsibility position with legal duties. Many foreign founders line up a qualified local resident director early, so company registration can proceed without delay.
Stay ASIC compliant with Sleek as your resident director
How many directors do you need for an Australian company?
How many directors do you need for an Australian company?
The number of directors your company needs depends on the type of business structure you register in Australia. Here’s a quick breakdown:
- Proprietary Company (Pty Ltd): One of the most common choices for small to medium-sized businesses. By law, every Pty Ltd must have at least one director who ordinarily resides in Australia. You can appoint additional directors including foreign nationals but one must be a local resident to satisfy ASIC’s requirement.
- Public Company: Typically used by larger organisations or businesses planning to list or raise capital from the public. A public company must have a minimum of three directors, and at least two must normally live in Australia.
For most foreign founders, a proprietary limited (Pty Ltd) company is the preferred and most practical option, simple to manage, flexible in structure, and fully compliant for expansion into Australia.
Can a non-resident be a director of an Australian Company?
Yes, but they can’t be the only director. At least one director of a Pty Ltd must normally live in Australia, and a public company needs two. Non-resident directors can still hold shares, sit on the board, vote and help run the business from overseas.
Many Australian subsidiaries and startups have a mix of local and overseas directors. What matters is keeping local representation in place for compliance.
What happens if you don’t appoint a resident director?
You can’t register the company: ASIC won’t accept a Pty Ltd application without a director who normally lives in Australia. If your company is already registered and its only resident director resigns or moves overseas, it no longer meets the requirement and has to fix it.
To get back on track:
- Appoint a new director who normally lives in Australia and has a director ID.
- Get their written, signed consent before the appointment.
- Notify ASIC of the change within 28 days. Late fees may apply after that.
Leaving the gap open puts the company in breach of the Corporations Act and can lead to compliance action from ASIC.
What are the legal duties and responsibilities of directors in Australia?
A resident director plays a crucial legal role in ensuring a company’s compliance with the Corporations Act 2001 and other regulatory obligations. Here’s a breakdown of their key legal duties and responsibilities:
1. Duty of care and diligence
Directors should act carefully and thoughtfully like any reasonable person in the same role. That means reading the financials, understanding the risks, and doing your homework before deciding
2. Duty of good faith and proper purpose
They must act in good faith in the best interests of the company, and only for proper corporate purposes, not for personal gain or to benefit another entity.
3. Duty to avoid improper use of position
They’ll not use their role to gain an advantage for themselves or someone else, and don’t use it in a way that harms the company.
4. Duty to avoid improper use of information
They’ll not misuse any confidential or company information for personal benefit or to the detriment of the company.
5. Duty to prevent insolvent trading
If the company is insolvent or likely to become insolvent, they’ll not take on new debts. Breaching this can expose you to penalties and personal liability.
Failing to meet the duties can lead to civil penalties, compensation orders, disqualification and in serious or dishonest cases, criminal liability. Our guide to directors’ duties in Australia covers each one in more detail.
Set up with Sleek as your resident director
What are the Australian tax implications for non-resident directors
Director fees paid to non-resident directors are subject to PAYG withholding under Australian tax law. The company must withhold the correct amount and report it to the ATO. Tax treaties may adjust the final tax payable, but the withholding obligation still applies:
- Company-level registration: The company’s ABN and Tax File Number (TFN) remain linked to the business, not individual directors.
- Personal tax residency: Non-resident directors must assess their personal tax residency and understand how their director income is taxed, this can be complex and may depend on double tax agreements.
- Resident director requirement: If a company fails to meet this requirement, ASIC can issue penalties or take enforcement action. You must appoint a new qualified director immediately and notify ASIC within 28 days.
Having a resident director safeguards your company’s ASIC compliance and credibility, especially if your business is overseas-owned or you travel frequently. Keeping a qualified resident director in place, and a partner like Sleek handling your ASIC filings, helps you avoid penalties and ensures annual statements and director updates are submitted accurately and on time.
What if you don’t have an Australian resident director?
Not every overseas founder has a ready-made contact in Australia. If you find yourself in this situation, you have three practical paths forward.
- Appoint an Australian-based partner or co-founder If you have a trusted local business partner, senior employee, or co-founder who meets the residency requirements, they can be appointed as the resident director. This is a viable option, but it’s important that this person fully understands the significant legal duties and personal liability they are accepting under the corporations act 2001
- Relocate to Australia For founders who plan to move and run their business from within the country, relocating and establishing residency is a long-term solution. This is a major personal and financial commitment that requires careful planning around Australian visas and tax laws.
- Use a professional resident director service (like Sleek) This is the most common, secure, and efficient solution for non-resident founders. A provider supplies a qualified professional to act as your company’s resident director. Sleek’s resident director service gives you a director who normally lives in Australia, from A$2,500 a quarter, and you can add company registration, a registered address and accounting in one package.
Crucially, the director serves in a non-executive capacity. Their role is to ensure your company meets its statutory obligations with ASIC, not to get involved in the day-to-day management of your business. A formal service agreement guarantees that you retain full operational control, while they handle the legal formality.
Whichever option you choose, remember that resident director is not a one-time requirement. Your company must maintain a qualified resident director at all times to remain legally compliant in Australia.
What legal documents are required when appointing a director?
Appointing a director, whether they’re a resident or non-resident, involves more than simply listing their name with ASIC. You’ll need several key documents and governance records to stay compliant:
- Consent to act as director: Every appointed director must provide written consent before taking up the role.
- Directors’ resolution or meeting minutes: A formal resolution or meeting record approving the appointment should be prepared and securely retained.
- Register of directors: Your company must maintain an up-to-date register listing all current and former directors, along with their residential addresses.
- Director service agreement: For directors who aren’t shareholders, a service agreement outlining their responsibilities, compensation, and expectations helps prevent future misunderstandings.
- Company constitution: If your company has a constitution, review and update it to reflect any changes in directorship. It should also clearly define each director’s powers and appointment process.
For founders, ensuring these documents are properly prepared and tailored to your company’s structure is essential for smooth governance, and offers protection if disputes arise later.
Can a nominee director fulfil the resident director requirement?
Not always. A nominee director is typically appointed to represent the interests of a specific shareholder or parent company, often in cases where a business has foreign ownership. Their main purpose is to ensure that the shareholder’s voice is heard at the board level.
However, the resident director requirement under Australian law is entirely separate. The law focuses on where the director actually lives, not whom they represent. To meet ASIC’s requirement, your company must have at least one director who “ordinarily resides in Australia.”
This means that:
- A nominee director can only fulfil the resident director role if they genuinely live in Australia and meet the legal residency test.
- If your nominee director is based overseas, they cannot satisfy this requirement, you’ll still need to appoint a separate Australian resident director.
In short, a nominee director represents ownership interests, while a resident director ensures local oversight and compliance. For many foreign-owned companies, these are two distinct roles, though in some cases, one person may legally hold both positions.
A nominee resident director service, like Sleek’s, gives you an Australian-resident professional who meets ASIC’s residency rule in a non-executive role, under a service agreement. You keep control of the business.
A resident director isn’t just a legal formality, they carry real responsibilities, including being accountable for the company’s tax obligations, ASIC filings, and compliance with Australian law. Even if shareholders are overseas, the resident director can still be held personally liable for breaches, unpaid taxes, or inaccurate reporting, so choosing someone who understands their duties is critical.
How much does a resident director cost in Australia?
With Sleek, a resident director costs from A$2,500 a quarter or A$7,500 a year (GST inclusive). You can choose 3-month, 6-month or yearly billing, and ASIC fees are separate.
Three things drive resident director cost:
- The responsibility involved: a resident director takes on real legal duties and personal liability, so credible providers charge a real fee.
- Your billing term: you can pay quarterly, half-yearly or yearly.
- What’s bundled: a director bought on its own costs more per item than one packaged with incorporation, a registered address and accounting.
That’s why a bundle can work out cheaper overall. Our Australian Expansion package starts from A$10,130 plus ASIC fees and includes 12 months of resident director service (worth A$7,500), company registration, a registered address and digital mailroom, and a year of accounting and tax compliance.
How Sleek helps foreign founders register and stay compliant with ASIC
- 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.
- Stay compliant with local rules: We provide your resident director, registered office address and ASIC agent service, so you can incorporate without a local partner.
- Ongoing compliance made simple: We take care of the essentials, from maintaining company records and lodging ASIC changes, to preparing BAS, bookkeeping, and tax filings, so you stay compliant year-round.
- Transparent pricing: Fixed-fee packages with no hidden surprises.
From incorporation to ongoing compliance, Sleek keeps your Australian company organised, accurate, and aligned with ASIC.
Use our resident director or bring your own, and we’ll register your company and handle its ongoing compliance. New to setting up here? Start with our guide to starting a business in Australia as a foreigner.
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A resident director isn’t just a legal formality, they carry real responsibilities, including being accountable for the company’s tax obligations, ASIC filings, and compliance with Australian law. Even if shareholders are overseas, the resident director can still be held personally liable for breaches, unpaid taxes, or inaccurate reporting, so choosing someone who understands their duties is critical.
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FAQs on resident director services
Can a non-resident own 100% of an Australian company?
Yes, ownership and directorship are separate under Australian law. A non-resident can hold 100% of shares in a Pty Ltd while appointing a resident director to meet ASIC’s requirements. The resident director has no ownership rights unless they are also a shareholder.
Can a resident director also be the company secretary or public officer?
Yes. A Pty Ltd doesn’t have to appoint a company secretary, but if it does, at least one secretary must normally live in Australia, and a director can hold that role. Every company carrying on business in Australia also needs a public officer for the ATO, who must be at least 18 and ordinarily resident in Australia. In practice, that is often the resident director.
Do I need a director ID?
Yes. Every director needs a director ID, including your resident director and any directors based overseas, and they must apply for it before they’re appointed. Our director ID guide explains how to apply.
Can I replace or end Sleek’s resident director service?
Yes. Sleek’s customer success team handles changes to the service, including replacing the director or ending it. Your company must always have at least one director who normally lives in Australia, so line up a replacement before the service ends. The change then has to be notified to ASIC within 28 days.
