Setting up in Australia when your business starts overseas.
An overseas business entering Australia has to decide how it will operate here, register with ASIC and the ATO, and meet Australian tax rules from its first sale. We work with global founders and foreign companies on the local entity structure, the registrations and Australian tax compliance from day one.
Four ways an overseas business can start in Australia.
The right option depends on what you will do here, how much risk you want to keep inside Australia and who will run the local business. Each one carries different registration, reporting and tax obligations.
Australian Subsidiary
A new Australian company owned by the overseas parent. It is a separate legal entity and an Australian tax resident. If the parent does not carry on business in Australia directly, it does not have to register as a foreign company.
Registered Foreign Company
The overseas company trades in Australia itself, often called a branch. It must register with ASIC before it carries on business here, appoint a local agent and keep a registered office. ASIC then issues an Australian Registered Body Number (ARBN).
Buying an Existing Company
Acquiring an Australian company gives you a business that is already trading and registered. Acquisition proposals by foreign investors may need formal review by the Foreign Investment Review Board (FIRB).
Selling Into Australia
Some businesses sell to Australian customers without a local entity. A non-resident must still register for GST once its GST turnover from sales connected with Australia reaches A$75,000. GST also applies to digital products and imported services sold to Australian consumers.
Simplified GST registration suits non-residents that don’t need an ABN or GST credits. Standard registration is needed to issue tax invoices or claim GST credits. Simplified registration is not available to a business that imports and warehouses goods in Australia before selling them.
What needs to be in place before you start trading.
These registrations come before the first invoice. We prepare and lodge them in the right order so the entity, its directors and its tax accounts are ready together.
Director IDs
Every director of a new Australian company needs a director ID before the company is registered. Directors of a foreign company also need one, or must have applied for one, before it registers with ASIC.
Local Directors & Agents
A proprietary company needs at least one director who normally lives in Australia. A registered foreign company needs a local agent who lives in Australia and can be liable for the company’s obligations.
ABN & TFN
A tax file number is needed to lodge an Australian tax return. A non-resident carrying on or starting an enterprise in Australia may be entitled to an ABN, and can apply without a TFN.
GST
GST is 10% on most goods and services sold or consumed in Australia. Registration is required once GST turnover reaches A$75,000. Below that, you can register voluntarily but must stay registered for at least 12 months.
Australian tax rules that apply once you are trading here.
Cross-border businesses face rules that purely local businesses never meet. These are the points we work through with you in the first year and review as the business grows.
Tax Residency
A company incorporated in Australia is an Australian tax resident. A company incorporated overseas can also be resident if it carries on business here and its central management and control is in Australia, or Australian residents control its voting power. Tax treaties can change the result.
Permanent Establishment
For residents of a country with an Australian tax treaty, business income is generally taxed in Australia only when you operate through a permanent establishment here. Without a treaty, the source of the income decides.
Transfer Pricing
Prices charged between the Australian business and related parties overseas must follow the arm’s length principle. The ATO can review these dealings and adjust the price, with penalties. International related-party dealings over $2 million also need an international dealings schedule.
Payments Overseas
Interest, dividends and royalties paid to a foreign resident carry withholding obligations. The standard rates are 10% on interest and 30% on unfranked dividends and royalties. A lower rate applies where a tax treaty sets one.
Employing Staff
Employing people in Australia brings tax and super obligations for each worker. The super guarantee rate is 12% of qualifying earnings. From 1 July 2026, super must reach the employee’s fund within 7 business days of payday.
Foreign Company Reporting
A registered foreign company lodges financial statements with ASIC at least once each calendar year, no more than 15 months apart. Its name, ARBN and place of origin must appear on public documents, and changes must be notified to ASIC.
A local accountant for businesses arriving in Australia.
International Business Start-Ups connects the set-up work to the structure you trade through and to our accounting, tax and ATO and ASIC services. We handle the local entity structure, the regulatory registrations and Australian tax compliance from day one, then keep reporting and lodging for the business as it grows.