How to Set Up a Company in Australia as a Foreigner (2026)

The Australian-resident director requirement

• Australia's Corporations Act 2001 requires every proprietary company (Pty Ltd) to have at least one director who is ordinarily resident in Australia. This means:
• An Australian citizen, or
• A permanent resident, or
• The holder of an appropriate visa

There is no bond or substitute — unlike Ireland's Section 137 bond, Australia simply will not register a company without a locally-resident director.

Implication for non-residents: If you don't have Australian residency, you need either: 1. To apply for an appropriate visa (subclass 188 Business Innovation, 132 Business Talent, 482 Temporary Skill Shortage for employees), or 2. To find an Australian-resident co-founder or nominee director (commercially risky), or 3. To operate through a branch of your foreign company (no local director requirement for a foreign company's branch registration — however, an Australian agent must be appointed)

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Step 1: Register via ASIC

Australia's corporate regulator is ASIC (Australian Securities and Investments Commission). Registration is via the ASIC Connect portal (asic.gov.au).

• Requirements:
• Company name (unique — check ASIC's business name register)
• Registered office address in Australia
• Principal place of business address
• At least 1 director ordinarily resident in Australia
• At least 1 shareholder (no nationality restriction; no residency restriction for shareholders — only directors)
• No minimum capital requirement

Fee: AUD 314 (proprietary company registration — verify current fee at asic.gov.au)

Timeline: 1–2 business days for online applications

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Step 2: Tax registrations via ATO

The Australian Taxation Office (ATO) manages tax registrations:

ABN (Australian Business Number): Apply via abr.gov.au. Usually granted within 24 hours. Required to operate in Australia commercially, issue tax invoices, and register for GST.

GST (Goods and Services Tax): 10% flat rate. Register if your GST turnover exceeds AUD 75,000/year (or AUD 150,000 for non-profit organisations). Registration is compulsory above threshold; voluntary below.

PAYG Withholding: Register if you pay salaries to employees.

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Corporate tax rates

• R&D Tax Incentive:
• Companies with turnover <AUD 20M: 43.5% refundable tax offset on qualifying R&D expenditure — effectively a 43.5% cash rebate
• Companies with turnover ≥AUD 20M: 38.5% non-refundable offset
• This is one of the world's most generous R&D incentives by value and significantly reduces the effective tax cost of eligible tech companies

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Real cost (Year 1)