Setting up a business in Australia
A strategic guide for start-ups
1. Choose the right business structure
To operate in Australia the business must choose between setting up a branch and a subsidiary. The set ups are quite different, as follows are the requirements for each to consider.
- A subsidiary is easier to set up. It will still take 10-30 days to get all necessary registrations in place, including the ABN. The Australian subsidiary must have at least one resident director in Australia, but the company can be wholly owned by a foreign shareholder.
- A branch takes 40-45 days to get the ASIC registration and then to get all other necessary registrations in place, including the ABN.
2. Registration and administrative steps
The following steps must be completed to set up in Australia:
- appoint a resident director in Australia
- establish a physical local registered office address
- register for an ABN – Australian Business Number
- register for a TFN – Tax File Number
- open a local bank account for paying taxes.
3. Taxation and social contributions
- Two rates of Corp tax – Full rate 30%, Base rate 25%.
- GST registration compulsory for turnover of $75,000>.
- Superannuation is payable monthly through payroll, must be paid locally and cannot be paid from overseas.
- Payroll tax year runs 1 July to 30 June.
In summary, Australia offers strong opportunities for international businesses, but success depends on getting the foundations right from the outset. Choosing the most appropriate structure, completing the required registrations and understanding local tax, payroll and compliance obligations are all essential steps. With the right planning and local advice, businesses can enter the Australian market with confidence and build a platform for long-term growth.
If you would like to discuss further, please do not hesitate to get in touch with your usual Crowe UK contact.
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