Set up a company in Australia.
A stable, English-speaking, common-law jurisdiction in the heart of Asia-Pacific. 14th largest economy globally. AUKUS and CPTPP partner. 25% CIT for base rate entities (under AUD 50m turnover), 30% standard, and an R&D Tax Incentive worth up to 43.5% refundable. Our new Sydney office is now on the ground for clients entering APAC.
To set up a company in Australia, you choose a legal structure (most commonly a Proprietary Limited Company — Pty Ltd, equivalent to a UK Ltd or US LLC), reserve the company name with ASIC (Australian Securities and Investments Commission), appoint at least one Australian-resident director, register the company via ASIC to obtain the Australian Company Number (ACN), then apply for the Australian Business Number (ABN) and Tax File Number (TFN) from the ATO. GST registration is required if expected turnover exceeds AUD 75,000.
Standard formation takes 1 to 3 weeks once the resident director is in place. 100% foreign ownership is permitted, subject to FIRB (Foreign Investment Review Board) review for significant investments. CIT is 25% for Base Rate Entities (turnover under AUD 50m, ≤80% passive income) or 30% standard. GST is 10%. The R&D Tax Incentive offers up to 43.5% refundable offset for eligible R&D activity — globally competitive.
Grant & Graham operates from a Sydney office (new for 2026), coordinating end-to-end through our local team and senior Australian legal and accounting counsel. We handle ASIC registration, ABN/TFN, FIRB liaison where required, banking introductions, payroll, superannuation, and ongoing compliance.
Bifurcated CIT. 10% GST. 43.5% R&D offset.
Australia operates a two-rate corporate tax system: 25% for Base Rate Entities (turnover under AUD 50m with no more than 80% passive income); 30% for everyone else. The R&D Tax Incentive (refundable offset up to 43.5%) is one of the world’s most generous innovation regimes — genuinely material for tech, biotech, and engineering ventures. Australia also operates a unique dividend imputation (franking credit) system that prevents double taxation of corporate profits in shareholder hands.
Other notable items: WHT on unfranked dividends 30% (0% on fully franked) — reduced to 5–15% under treaty for 10%+ holdings. WHT on interest 10% to non-residents; WHT on royalties 30% (treaty reductions to 5–10%). Superannuation 12% from 1 July 2025 — employer contribution on ordinary times earnings. Fringe Benefits Tax 47% on grossed-up taxable value. State payroll tax varies (NSW 5.45%, Vic 4.85%, Qld 4.75%, WA 5.5%). Instant asset write-off AUD 20,000 extended through 30 June 2026 for SMEs (turnover under AUD 10m). ~47 double taxation treaties.
Nine reasons businesses choose Australia.
Australia is the obvious APAC entry point for English-speaking, common-law-aligned businesses — with the world’s 14th largest economy, AAA sovereign credit, and structurally generous R&D incentives. Sydney is increasingly the most credible APAC financial hub for European and US-anchored businesses.
14th largest economy in the world
Approximately AUD 2.6 trillion GDP. AAA sovereign credit rating (S&P, Moody’s, Fitch). Over 30 years of uninterrupted growth before COVID. One of the most stable macroeconomic environments globally. Australian Dollar is the 5th most-traded currency in the world.
43.5% refundable R&D offset
The Australian R&D Tax Incentive provides a 43.5% refundable offset for eligible R&D activity at companies with aggregated turnover under AUD 20m, and 38.5% non-refundable for larger groups. Genuinely globally competitive — better than UK SME R&D relief or US R&D credit. Significant for tech, biotech, engineering, AgTech, MedTech.
Stable common-law jurisdiction
English-language. Common law system (UK/US compatible). Strong rule of law. Transparent, predictable regulation. Top 10 globally on the World Bank Ease of Doing Business and Rule of Law indices. Materially lower operational friction than emerging-market APAC alternatives.
AUKUS & CPTPP partner
AUKUS defence/tech alliance with the UK and US opens substantial defence, advanced technology, AI, quantum, and cyber security contracting. CPTPP membership delivers preferential access to Japan, Canada, Mexico, Vietnam, Singapore, Malaysia, NZ, Chile, Peru, UK and Brunei. RCEP provides wider Asian market access.
Asia-Pacific gateway
Sydney time zone (AEDT) overlaps both Asian business hours and end-of-day European hours. Direct flights to most major Asian capitals under 10 hours. Increasingly the preferred APAC base for European and US businesses that previously defaulted to Singapore or Hong Kong.
Critical minerals superpower
World’s largest producer of lithium and 4th largest producer of rare earths — both critical to the global energy transition. Major producer of iron ore, coal, LNG, gold, copper, nickel, and uranium. Substantial AUKUS-driven uplift in defence-critical mineral supply chains underway.
Highly skilled workforce
Strong technical, engineering, financial-services, and digital pipelines from leading universities (Sydney, Melbourne, ANU, UNSW, Monash, UQ). English-speaking, common-law trained, internationally mobile. Skilled migration program actively recruits in software engineering, healthcare, finance, and advanced manufacturing.
Education as the 3rd largest export
International education contributes ~AUD 50 billion annually to the Australian economy — third only to iron ore and natural gas. Major export to China, India, Nepal, Vietnam, and elsewhere across APAC. Substantial opportunity for EdTech, professional training, and higher-education partnerships.
100% foreign ownership
100% foreign ownership of Australian companies is permitted, subject to FIRB (Foreign Investment Review Board) approval for significant investments above sector-specific thresholds. FTA partners (US, UK, Japan, Korea, China, NZ, Singapore, Chile, India, others) enjoy higher non-sensitive thresholds — AUD 1.4bn for non-sensitive sectors in most cases.
Six legal structures — one usually fits.
For most foreign investors, the Pty Ltd is the practical default. Ltd (Public Company) is required for ASX listing or public capital raising. Branch registration is the alternative for foreign parents that need a direct presence without separate incorporation.
Proprietary Limited Company
The standard structure for foreign investors. 1 to 50 non-employee shareholders. At least 1 Australian-resident director required. No minimum share capital (AUD 1 nominal common). 100% foreign ownership permitted. Cannot raise capital from the public. The workhorse vehicle for SMEs and most foreign subsidiaries.
Public Limited Company
Public shareholding company. Can raise capital from the public; can list on the ASX (Australian Securities Exchange). Minimum 3 directors (2 Australian-resident). Heavier governance, disclosure, audit, and continuous-disclosure obligations under the Corporations Act 2001.
Foreign Branch
Registered branch of a foreign company under ASIC’s Foreign Companies regime. Parent retains full liability for Australian operations. Subject to 30% CIT on Australian-source profits. Useful where parent must remain the legal contracting entity (defence, government, regulated sectors).
Trust
Trustee holds property and runs business on behalf of beneficiaries. Common Australian structure for family businesses, asset protection, and tax-efficient distribution. Generally a corporate trustee (Pty Ltd) is used. Tax treatment varies by trust type. Discretionary trusts cannot be base rate entities directly.
Partnership
Two or more partners. General partnerships: unlimited joint and several liability. Limited partnerships: some partners with limited liability (governed by state Acts). Tax-transparent — partners taxed on their share. Common in professional services. Limited partnerships also used for VC fund structures.
Representative Office
Limited to marketing, research, and representation. Cannot generate revenue in Australia. Lighter-touch option for market exploration before fuller commitment. Australia does not have a formal "representative office" category — usually structured as a non-trading branch or a Pty Ltd with limited activity.
Joint Venture
Two or more parties pooling resources for a specific business. Can be contractual (no separate entity) or incorporated (via Pty Ltd or Ltd). Common in mining, infrastructure, construction, and energy. Each party retains tax personality — profits/losses allocated per the JV agreement.
Sole Trader
Single owner with unlimited personal liability. Simplest structure for freelancers and one-person businesses. Income taxed at personal marginal rates (up to 45% + Medicare levy). Rarely the right structure for inbound foreign investors.
Talk to us first
Pty Ltd is the right choice for 90% of foreign-investor cases. Trust structures matter for family-business and asset-protection contexts. Branch where parent must remain the contracting entity. Base rate entity vs standard CIT scoping deserves attention from day one.
Book a call →From decision to live entity.
The end-to-end registration sequence for an Australian Pty Ltd — coordinated by Grant & Graham’s Sydney office and senior Australian legal and accounting counsel.
Resident director identification
Australia requires at least one director who is ordinarily resident in Australia — this is the first practical step for foreign investors. Options: appoint an Australian-resident employee, retain a professional nominee director service, or relocate one of your own personnel under a business visa. Resolve this before any ASIC filing — it determines the formation timeline.
Director Identification Number (DIN)
All directors of Australian companies must obtain a Director Identification Number (DIN) from the Australian Business Registry Services (ABRS) before being appointed. Foreign directors apply via paper form with apostilled identity documents. Allow 4 to 6 weeks for foreign-director DIN issuance.
Company name reservation & ASIC registration
Reserve the proposed company name via ASIC. Submit ASIC Form 201 (Application for Registration as an Australian Company) with director details, shareholder details, registered office address, and a choice between replaceable rules and a custom constitution. ASIC issues the Australian Company Number (ACN) and Certificate of Registration — typically within 1 to 2 business days.
ASIC →ABN & TFN registration
Apply for the Australian Business Number (ABN) via the Australian Business Register, simultaneously registering for a Tax File Number (TFN). ABN required for issuing invoices, GST registration, and most commercial dealings. TFN is the company’s tax identity for the ATO. Both typically issued within 1 to 2 weeks of ASIC registration.
ABR →GST & PAYG registration
Register for GST with the ATO if expected turnover exceeds AUD 75,000 in 12 months (mandatory) or voluntarily below the threshold. Register for PAYG Withholding if you will employ Australian-tax-resident staff. Quarterly Business Activity Statement (BAS) lodgement.
ATO →FIRB notification (if applicable)
For significant foreign investments (above sector thresholds), notification to the Foreign Investment Review Board (FIRB) is required before completion. Non-sensitive sector threshold typically AUD 339m (or AUD 1.4bn for FTA-partner investors including UK, US, Japan, Korea, NZ, Singapore, Chile, India). Sensitive sectors (defence, telecoms, critical infrastructure, agricultural land, media) have lower thresholds.
FIRB →Bank account opening
Open an Australian business bank account at a major bank (Commonwealth Bank, Westpac, NAB, ANZ, or Macquarie). Foreign-owned-company onboarding typically takes 2 to 4 weeks. Director presence in Australia for in-branch verification is usually required. Sydney-based banking introductions handled by our Sydney office.
Superannuation & workers’ compensation
Register with a default superannuation fund (employer must pay 12% super on ordinary times earnings from 1 July 2025). Register for state Workers Compensation Insurance — mandatory before employing any staff (icare in NSW, WorkSafe Victoria, WorkCover Queensland, etc.). Sector-specific insurance may also be required.
State payroll tax (if applicable)
If your Australian payroll exceeds the relevant state threshold (e.g., NSW AUD 1.2m, Victoria AUD 900k, Queensland AUD 1.3m), register for state payroll tax. Rates vary by state (NSW 5.45%, Vic 4.85%, Qld 4.75%, WA 5.5%). Each state operates separate registration and lodgement systems.
R&D Tax Incentive registration (if eligible)
If conducting eligible R&D activity, register with AusIndustry within 10 months of fiscal year-end. Required to claim the R&D Tax Incentive (43.5% refundable for <AUD 20m turnover, 38.5% non-refundable for larger). Detailed contemporaneous documentation required — build the system from day one.
Now in Sydney.
Grant & Graham opened its Sydney office in 2026 — our first APAC presence outside Singapore.
For clients entering the Australian market or expanding from Australia into the broader Asia-Pacific, we coordinate engagements directly from Sydney with senior local legal, accounting and operational expertise on the ground — not through a remote referral network.
G&G Sydney
- Australian Pty Ltd formation, ASIC registration, ABN/TFN
- FIRB liaison and foreign-investment scoping
- Senior Australian legal and accounting introductions
- Banking onboarding with major Australian banks
- R&D Tax Incentive scoping and registration
- Interim management & APAC GTM strategy
- Singapore and APAC market coordination
What it costs to incorporate & run.
All figures are indicative for a standard Pty Ltd with one or two foreign shareholders. Australia sits in the mid-range globally for setup and ongoing costs — below the US, broadly comparable to the UK, and meaningfully above most MENA jurisdictions. The DIN and resident-director requirements are the principal operational considerations.
One-time setup
Resident-director nominee service is the single biggest variable. Where you have an Australian-resident director already (employee, advisor, or relocated team member), the cost is materially lower. FIRB fees apply only above thresholds and to specific sectors — most early-stage formations are below the FIRB notification threshold.
Ongoing monthly / annual
Statutory audit only required for larger proprietary companies (revenue ≥AUD 50m, assets ≥AUD 25m, or ≥100 employees). Smaller Pty Ltds can lodge unaudited accounts. R&D Tax Incentive claims add compliance cost but are usually materially net-positive for eligible companies.
Get an estimate in 30 seconds.
Three quick questions. We will give you a realistic cost range and timeline for your situation, and route the answers straight into a fixed-price quote request.
Which company structure are you considering?
How is the shareholding structured?
What do you need from us?
The legal framework to know.
A summary of the core legislation governing companies in Australia — substantive work is delivered through our Sydney office and senior Australian counsel.
Corporate Law
- Corporations Act 2001 (Cth)
- ASIC Act 2001 (Cth)
- Partnership Acts (state-based)
Tax Law
- Income Tax Assessment Acts 1936 & 1997 (Cth)
- GST Act 1999 (Cth)
- Fringe Benefits Tax Assessment Act 1986 (Cth)
- Taxation Administration Act 1953 (Cth)
Employment Law
- Fair Work Act 2009 (Cth)
- National Employment Standards (NES)
- Modern Awards system
- Work Health & Safety Act 2011
Data & Cyber
- Privacy Act 1988 (Cth)
- Australian Privacy Principles (APPs)
- Security of Critical Infrastructure Act 2018
- Consumer Data Right (CDR)
Investment & Foreign Capital
- Foreign Acquisitions and Takeovers Act 1975 (Cth)
- FIRB Guidance Notes
- National Security and Investment Acts (sector-specific)
Intellectual Property
- Patents Act 1990 (Cth)
- Trade Marks Act 1995 (Cth)
- Copyright Act 1968 (Cth)
- Designs Act 2003 (Cth)
Australia, answered.
Four steps from enquiry to live entity.
Discovery call
30-minute conversation to understand your business, sector, resident-director arrangements, FIRB scoping, R&D Tax Incentive eligibility, and what you need from the Australian entity.
Recommendation
Senior advisory on structure (Pty Ltd, Branch, Ltd, Trust), resident-director options, BRE vs standard CIT positioning, FIRB requirements, R&D eligibility, and banking partner. Fixed quote in EUR, GBP or AUD.
End-to-end formation
DIN processing, ASIC filing, ABN/TFN, FIRB liaison where required, GST/PAYG registration, banking introductions, superannuation setup, R&D Tax Incentive registration. Sydney-based.
Ongoing support
Retained accounting (Xero/MYOB), payroll, BAS lodgement, annual CIT return, ASIC annual review, R&D Tax Incentive claims, FIRB updates, and structural changes as you scale across APAC.
Ready to incorporate in Australia?
Tell us in 25 minutes what you need. Our Sydney office will tell you honestly whether Australia is the right APAC base for your business — Pty Ltd, Branch, or Trust — and if it is, we’ll handle the setup end-to-end on the ground.