Australia company formation for non-residents

Why founders register a company in Australia

Most founders who register an Australian company already sell to Australian customers. A local Pty Ltd lets you sign contracts with local buyers, register for GST, employ staff and invoice in Australian dollars.

Australia is not a low-tax base, and we do not position it as one. The reason to form here is market access. If your customers, staff or suppliers are in Australia, a local company is often simpler than trading cross-border and handling GST as a non-resident supplier.

The legal system is common law, the registry is online and ASIC processes most registrations within days. The harder parts sit around the edges: the resident director rule, director IDs for overseas directors and opening a bank account.

Directors, shareholders and the resident director rule

A proprietary company needs at least one director, and at least one director must ordinarily reside in Australia. This is the rule that decides most non-resident projects. Without a qualifying director, ASIC will not register the company.

Shareholders can live anywhere and can be individuals or companies. One shareholder is enough. A proprietary company may have no more than 50 non-employee shareholders and cannot raise money from the public.

Every director needs a director ID before appointment. Australian residents usually apply online in minutes. Overseas directors without Australian identity documents apply on a paper form with certified copies, which can take several weeks, so we start this on day one.

• Minimum 1 director, who ordinarily resides in Australia
• Minimum 1 shareholder, any nationality
• Company secretary optional; if appointed, one must ordinarily reside in Australia
• Registered office address in Australia

How registration works, step by step

First we check the name against the ASIC register and confirm who the resident director will be. You then pass KYC in the client portal and each director obtains a director ID.

We lodge the registration with ASIC. Once approved, ASIC issues a certificate of registration and a 9-digit Australian Company Number (ACN). Registration usually takes 1–3 business days once KYC is approved and director IDs exist.

After registration we apply for an Australian Business Number (ABN) and a Tax File Number (TFN). If your GST turnover will reach A$75,000, the company must also register for GST. Your certificate, constitution and registers land in your portal.

Company tax, GST and payroll

The standard company tax rate is 30%. A company that qualifies as a base rate entity pays 25%. To qualify, aggregated turnover must be under A$50,000,000 and no more than 80% of assessable income can be passive income, such as interest or rent.

GST is 10% on most sales in Australia. Registration becomes compulsory once GST turnover reaches A$75,000 a year. Many companies register earlier so they can claim GST credits on costs.

Where the profit is taxed depends on residency and where the company is managed and controlled. If directors run the company from another country, both countries may claim taxing rights. Get tax advice on your group before you start trading.

Once the company employs people in Australia, it registers for PAYG withholding with the ATO and withholds tax from wages. It also pays superannuation for eligible employees at the super guarantee rate published by the ATO, calculated on ordinary time earnings.

Workers' compensation insurance is compulsory and is arranged state by state. Employment terms follow the Fair Work system, including minimum wages and any modern award that covers the role. Most founders use a local payroll provider for this part.

Annual review, reports and what stays on file

ASIC sends an annual statement on each anniversary of registration. You check the company details, pay the annual review fee and pass a solvency resolution within two months of the review date. Changes to officeholders, addresses or shares must be notified to ASIC within set deadlines.

Small proprietary companies usually do not lodge financial reports with ASIC. A large proprietary company must prepare and lodge audited financial reports. A company is large if it meets two of three tests for the group: revenue of A$50,000,000 or more, assets of A$25,000,000 or more, or 100 or more employees.

A small proprietary company controlled by a foreign company can also have reporting and audit duties unless an ASIC relief instrument applies. We flag this at the start so there are no surprises (confirm with your specialist).

Bank accounts, foreign investment and common delays

Australian banks decide whether to open an account and how to verify directors who live overseas. Some ask for an in-person or video meeting. Having a resident director and a clear business plan helps. We introduce you to suitable banks or EMIs and prepare the application.

Foreign ownership of an Australian company is generally open. The Foreign Investment Review Board (FIRB) regime applies to certain actions, such as buying land or investing in sensitive businesses, not to setting up an ordinary trading company. If your plan involves property or critical infrastructure, raise it before you pay.

Three things slow most non-resident projects. The first is finding a resident director who is willing to take on real legal duties. The second is director IDs for overseas directors, which go through a paper process. The third is the bank account.

Plan these three in parallel, not one after the other. We start the director ID applications and the bank introduction as soon as KYC is approved, so the company is ready to trade soon after ASIC registers it.

What OCC handles and what it costs

Our Australian package starts at US$1,890 for year 1 with the ASIC registration fee included, and US$1,890 from year 2. We handle the name check, ASIC lodgement, constitution, registers, ABN and GST applications and your annual review calendar.

You provide passports, proof of address, the resident director's details and a short business description. OCC is licensed in Hong Kong as a trust or company service provider (TCSP TC001305). Where Australian tax or legal advice is needed, we tell you so and point you to a local adviser.