Australia offers several advantages as a potential expansion destination: a stable economy, a skilled English-speaking workforce, strong institutions, and a proximity to Asian markets that makes collaboration relatively straightforward. It's no surprise that so many companies choose Australia for their entry into the Asia-Pacific region.
What many companies don’t expect, though, is how much work goes into actually setting up shop there. Before you hire anyone or generate revenue in the country, you need a legal way to operate.
One option is establishing a local legal entity. It takes time, requires a significant financial investment upfront, and creates ongoing compliance obligations — but for the right company at the right stage, it makes sense.
This guide walks you through the legal structure options, the registration process, and what you're signing up for once the entity is live. We'll also cover when an Employer of Record (EOR) might be the better path.
Why Companies Expand to Australia
Australia consistently ranks high on global measures of institutional stability, rule of law, and ease of doing business. For companies expanding from Europe or the Americas, it offers a familiar legal environment without the added challenge of navigating a new language or confusing regulations.
Sydney and Melbourne are leading talent hubs, each offering strong pools of skilled professionals across technology, finance, professional services, and healthcare.
Brisbane and Perth have also strengthened their positions as industry centers in recent years, with Brisbane emerging as a hub for engineering, infrastructure, and mining technology, while Perth has developed deep expertise in mining operations, energy, and industrial engineering tied to Western Australia’s resources sector.
The startup ecosystem is well-developed, and the government actively supports innovation through programs such as the R&D Tax Incentive.
However, just because skilled talent can be found in Australia doesn’t mean expanding into the country is easy. Australia’s employment laws are complex and detailed, tax compliance spans multiple jurisdictions, and the incorporation process itself has more moving parts than many founders might expect.
Choosing the Right Legal Structure
Foreign companies typically have three main options for forming a legal entity to operate in Australia. The right choice for your company depends on how much business activity you plan to conduct there and how much liability you’re comfortable retaining at the parent company level.
Proprietary Limited Company (Pty Ltd)
This is the standard choice for international companies seeking to establish a genuine commercial presence. A Pty Ltd is a separate legal entity from the parent company, meaning it can enter into contracts, own assets, and generate revenue in its own name. Crucially, the parent's liability is generally limited to its investment in the subsidiary.
Ownership can be 100% foreign, and there's no prescribed minimum share capital. The company must comply with Australian corporate law, file annual returns with the Australian Securities and Investments Commission (ASIC), and meet local tax obligations.
Australian Branch Office
A branch isn't a separate legal entity — it's an extension of the foreign parent, which remains fully liable for all Australian branch actions. The branch must register with ASIC as a foreign company and comply with Australian tax and reporting requirements, taking on obligations without liability protection.
Some financial services firms and large multinationals use this structure for limited operations, but for most companies entering Australia for the first time, a Pty Ltd is the more common choice.
Some financial services firms and large multinationals use this structure for limited operations, but for most companies entering Australia for the first time, a Pty Ltd is the more common choice.
Representative Office
A representative office can't generate revenue or sign commercial contracts — it exists purely for market research, liaison, or early scoping. Most companies use it temporarily before committing to a full entity. If planning to hire or do business, choose another option.
What You Need Before Incorporation
There are a few prerequisites required before registering. It’s worth sorting them out early, since some can take longer than the registration process.
A company name: You must check to ensure the name you wish to use is available. It can't conflict with existing registered businesses or trademarks.
At least one Australian-resident director: This catches many foreign founders off guard. A Pty Ltd must have at least one director who ordinarily resides in Australia. Companies without local connections may appoint a professional director or relocate a team member.
A physical registered office address: A P.O. box doesn't qualify. You need a real street address in Australia, and it must remain current in ASIC's records.
At least one shareholder: No minimum capital requirement applies to most industries, and foreign shareholders are permitted.
How to Register a Company in Australia
Once those prerequisites are met, the registration process typically follows a fairly straightforward sequence.
Step 1: Reserve Your Company Name
First, run an availability check on ASIC's name search tool. If your preferred name is available and you're not ready to register immediately, you can pay AUD 62 to reserve it for up to two months.
Step 2: Register With ASIC
The main incorporation application is lodged with ASIC. You'll need to provide director details (including proof of Australian residency for your local director), shareholder information, and your registered office address. You’ll also need to indicate whether the company will adopt its own company constitution or rely on the default “replaceable rules” set out in the Corporations Act.
Application approval typically takes one to three business days. As of March 2026, the registration fee is AUD 611. Once approved, you'll receive an Australian Company Number (ACN) and a Certificate of Registration.
Step 3: Obtain an Australian Business Number (ABN)
In addition to the ACN, you’ll need to obtain an Australian business number (ABN), which is required for taxes and invoicing.
Applications are submitted to the Australian Business Register and are usually processed within a few days. You’ll want to take care of this promptly — businesses paying you without an ABN on file are legally required to withhold 47% of the payment.
Step 4: Register for Taxes
Depending on your operations, you may need to register for several different taxes through the Australian Taxation Office (ATO), including:
- Corporate income tax: The standard corporate tax rate is 30%. Smaller companies with aggregated turnover under AUD 50 million may qualify as “base rate entities” and pay a reduced rate of 25%.
- Goods and Services Tax (GST): Registration is compulsory once annual turnover reaches AUD 75,000. The GST rate is 10%.
- Pay As You Go (PAYG) withholding: This is triggered once you have employees and are withholding tax from wages.
- Payroll tax: This tax is state-based, with different thresholds and rates across jurisdictions. If you have employees in multiple states, you may need to register in each state separately.
Step 5: Open a Corporate Bank Account
This is usually where timelines start to slip. Most major Australian banks require at least one director to complete identity verification in person, along with certified documentation and a full compliance review. If your directors are based outside Australia, expect this step to take significantly longer than the ASIC registration itself.
To speed up the process, some companies open an account with a fintech provider first, then move to a traditional bank once they’ve established a local presence.
Step 6: Get Director IDs
Every director of an Australian company must hold a Director Identification Number issued by the Australian Business Registry Services (ABRS). Unlike your ACN, the Director ID is tied to the individual — it follows them across every company they direct. This needs to be in place before or shortly after the appointment.
Ongoing Compliance Obligations
Registering your entity is just the first step. Staying compliant is what keeps your business in good standing with Australian regulators. Once the entity is established, here are a few ongoing requirements to keep on your radar:
ASIC annual review: Each year, ASIC issues a review statement and charges an annual fee of AUD 329 for a standard proprietary company (as of March 2026). Any changes to directors, shareholders, or the registered address need to be reported to ASIC within 28 days. Miss the deadline, and late fees apply.
Financial reporting: Small proprietary companies generally are not required to file audited financial statements with ASIC, but must still keep accurate accounting records and submit an annual corporate tax return to the Australian Taxation Office (ATO). Companies must be prepared to provide proper financial documentation upon request from regulators.
Superannuation: Employers must contribute to eligible employees' superannuation funds. As of March 2026, the Superannuation Guarantee rate sits at 12% of ordinary time earnings, the final step in a legislated increase schedule. Additional changes are scheduled to go into effect in July 2026.
Workers' compensation insurance: This is mandatory for all employees, and administered at the state level. Each state runs its own scheme, so requirements vary depending on where your employees are based.
TL;DR Timelines and Costs Recap
- ASIC registration typically takes one to three business days for a complete application. Tax registrations add a few more days to a couple of weeks.
- The bank account is the unpredictable part — in-person verification requirements for foreign directors can significantly delay it.
The standard government fees to form an entity include:
- Name reservation: AUD 62
- ASIC company registration: AUD 611
- Annual ASIC review fee: AUD 329 per year
For everything else — legal advice, accounting setup, bank account costs, ongoing compliance — the numbers vary enough that the Australian government recommends obtaining quotes from your own accountant or lawyer based on your specific situation.
The Next Step: Hiring Australian Employees
Operating a registered entity means taking on full employment compliance responsibilities for Australian hires. Aussie employment law isn't especially complicated, but it is detailed and consistently enforced.
All employment contracts must meet or exceed the minimum entitlements set by the National Employment Standards (NES), covering benefits such as:
- Superannuation at 12% of ordinary time earnings
- Four weeks of paid annual leave for full-time employees
- Personal and carer's leave
- Public holiday pay
- Parental leave entitlements
- Workers' compensation insurance
Many industries are also subject to Modern Awards, which layer additional minimum conditions on top, including penalty rates and shift allowances. It’s essential to confirm whether your employees are covered by an award before you extend an offer or draw up an employment contract.
When Does Incorporation Make Sense?
Honestly, not always — and that's worth saying plainly. Setting up a Pty Ltd is a good choice if you're planning a genuine long-term commercial presence, need to invoice Australian customers directly, or operate in an industry where local registration is a licensing requirement. It's also probably the right call if you're building out a team of meaningful size and expect to keep growing.
If you're hiring one or two people to test the market, or you need to move quickly without the administrative overhead, incorporating is probably more of a burden than it's worth at that stage. The setup process takes time you might not have, and the ongoing compliance obligations don't shrink just because your Australian headcount is small. In that case, you’re better off going with an Employer of Record.
Hire Compliantly in Australia With RemoFirst
When a full entity isn't the right fit, an Employer of Record like RemoFirst enables you to employ workers in Australia without setting up a Pty Ltd. RemoFirst acts as the legal employer on the ground, managing local payroll, superannuation, NES-compliant employment contracts, and benefits — while you keep day-to-day control of your team.
It's a practical option for companies in early market exploration, those moving fast, or anyone who wants to hire compliantly in Australia without adding months of setup work to their plate.
RemoFirst can help you employ talent in Australia and 185+ countries worldwide, with flat-fee pricing starting at USD 199 per employee per month — no entity required.
Book a demo to learn more about hiring in Australia and beyond.
