Australia

Company Formation in Australia

Q: Do I need an Australian-resident director?

Yes. At least one director of an Australian Pty Ltd must ordinarily reside in Australia. If you do not have an Australian-resident director, we provide a professional nominee director service to satisfy this requirement.

Q: What is the difference between the 25% and 30% corporate tax rate?

The 25% base rate applies to 'base rate entities' — companies with aggregated turnover of less than AUD 50 million and no more than 80% passive income. All other companies pay the standard 30% rate.

Q: When do I need to register for GST?

GST registration is mandatory once your annual turnover reaches or is expected to reach AUD 75,000 (AUD 150,000 for non-profit). You can register voluntarily below this threshold to claim input tax credits.

Q: Can I run a business in Australia without being there?

Yes. With a nominee resident director and a registered office address (both of which we provide), you can operate an Australian company remotely. Banking can also be managed online once established.

Q: What is the R&D Tax Incentive?

Australia offers one of the world's most generous R&D tax incentives. Eligible SMEs (turnover <$20M) receive a 43.5% refundable tax offset on qualifying R&D expenditure, meaning the government effectively pays you back even if you are not yet profitable.

Q: How does the franking credit system work?

Australia's franking (imputation) system attaches tax credits to dividends paid from after-tax profits. Shareholders receive a credit for the corporate tax already paid, preventing double taxation. For foreign shareholders, the benefit depends on the applicable tax treaty.

Australia

Formation Time

1–3 business days

Min. Capital

No minimum

Corporate Tax

25% (base rate, turnover <$50M)

Foreign Ownership

100%

Overview

Australia is one of the world's most stable and transparent economies, offering a highly developed legal system based on English common law, a skilled multilingual workforce, and a strategic time zone bridging Asia and the Americas. The standard entity for foreign investors is the Proprietary Limited (Pty Ltd) company, registered through the Australian Securities and Investments Commission (ASIC) — often within a single business day. There is no minimum share capital requirement, and the base corporate tax rate is 25% for companies with aggregated turnover under AUD 50 million. Australia's 46 double tax treaties, robust free trade agreements (including with the US, UK, China, Japan, and ASEAN), and a AAA sovereign credit rating make it a premier destination for businesses targeting the Asia-Pacific region. Every company must obtain an Australian Business Number (ABN) and Tax File Number (TFN), and GST registration is mandatory once turnover exceeds AUD 75,000.

1-day ASIC registration

25% base tax rate

No min capital

46 treaties

R&D tax incentive 43.5%

Why Choose Australia

Stable AAA-rated economy — 30+ years without recession (pre-COVID)

25% base corporate tax rate for companies under $50M turnover

No minimum share capital requirement

1-day ASIC company registration online

46 double tax treaties and extensive FTA network

English common law legal system

Gateway to Asia-Pacific and Oceania markets

Strong R&D tax incentive (43.5% refundable offset for SMEs)

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Pty Ltd (Proprietary Limited)	100%	1 (must be an Australian resident)	No minimum	25% base rate (turnover <$50M); 30% otherwise. Franking credits eliminate double taxation on dividends.	Most foreign businesses — trading, tech, consulting, services, subsidiaries
Public Company (Ltd)	100%	3 (at least 2 Australian residents)	No minimum (but higher compliance)	30% standard rate	Companies seeking to list on ASX or raise public capital
Branch Office	100% (extension of foreign parent)	1 local agent	None	Taxed on Australian-sourced income at 30%	Foreign companies testing the Australian market
Partnership (General / Limited)	100%	N/A	None	Pass-through — partners taxed individually	Professional services, joint ventures

Step-by-Step Formation Process

Name Reservation

Same day

Check company name availability via ASIC's online register. Names can be reserved for 2 months.

ASIC Registration

1 business day

Lodge Form 201 (Application for Registration as an Australian Company) online. ASIC issues a Certificate of Registration and ACN.

ABN & TFN Application

1–3 days (ABN immediate for eligible entities)

Apply for an Australian Business Number and Tax File Number through the Australian Business Register.

GST Registration

Simultaneous with ABN

Bank Account Opening

1–2 weeks

Open a corporate bank account with an Australian bank. Many banks offer online applications for new companies.

Costs & Fees

Government / License Fee	AUD 576+
Our Service Fee	USD 2,000+
Annual Renewal	USD 1,200+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Australia has a robust, well-regulated banking sector dominated by the 'Big Four' — Commonwealth Bank, Westpac, NAB, and ANZ. Account opening for companies with at least one Australian-resident director is straightforward and can often be initiated online.

Account Opening Time

1–2 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Commonwealth Bank (CBA)WestpacNational Australia Bank (NAB)ANZMacquarie BankAirwallex

Tax Overview

Corporate Tax

25% base rate (aggregated turnover <$50M); 30% standard rate

Personal Income Tax

0% up to AUD 18,200; then 19–45% progressive (plus 2% Medicare levy)

VAT / Sales Tax

10% GST (most goods and services; food, health, education exempt)

Capital Gains Tax

Included in income; 50% discount for assets held 12+ months (individuals)

Withholding Tax

30% on unfranked dividends (reduced by treaties); 10% on interest; 30% on royalties

Double Tax Treaties

46 countries

Australia's R&D Tax Incentive provides a 43.5% refundable tax offset for eligible SMEs (turnover <$20M). Franking (imputation) credits prevent double taxation of dividends.

Visa & Residency

Business Innovation Visa (Subclass 188A)

4 years (pathway to 888 permanent)

For business owners with turnover of AUD 750K+. Points-tested.

Investor Visa (Subclass 188B)

4 years (pathway to permanent)

Requires AUD 2.5M designated investment in Australia.

Significant Investor Visa (Subclass 188C)

4 years (pathway to permanent)

Requires AUD 5M complying investment. No age or English requirements.

Employer-Sponsored Visa (Subclass 482)

1–4 years

Temporary Skill Shortage visa for employees sponsored by an Australian business.

Family visa: AvailableProcessing: 3–12 months (varies by subclass)

Frequently Asked Questions

Do I need an Australian-resident director?

Yes. At least one director of an Australian Pty Ltd must ordinarily reside in Australia. If you do not have an Australian-resident director, we provide a professional nominee director service to satisfy this requirement.

What is the difference between the 25% and 30% corporate tax rate?

The 25% base rate applies to 'base rate entities' — companies with aggregated turnover of less than AUD 50 million and no more than 80% passive income. All other companies pay the standard 30% rate.

When do I need to register for GST?

GST registration is mandatory once your annual turnover reaches or is expected to reach AUD 75,000 (AUD 150,000 for non-profit). You can register voluntarily below this threshold to claim input tax credits.

Can I run a business in Australia without being there?

Yes. With a nominee resident director and a registered office address (both of which we provide), you can operate an Australian company remotely. Banking can also be managed online once established.

What is the R&D Tax Incentive?

Australia offers one of the world's most generous R&D tax incentives. Eligible SMEs (turnover <$20M) receive a 43.5% refundable tax offset on qualifying R&D expenditure, meaning the government effectively pays you back even if you are not yet profitable.

How does the franking credit system work?

Australia's franking (imputation) system attaches tax credits to dividends paid from after-tax profits. Shareholders receive a credit for the corporate tax already paid, preventing double taxation. For foreign shareholders, the benefit depends on the applicable tax treaty.