company decision only; personal tax residency is covered elsewhere.
Good to know
Good to Know
- You do not need to be an Australian citizen, permanent resident, or even hold a visa to own 100% of an Australian company — but a Pty Ltd company legally cannot register with ASIC unless at least one director actually lives in Australia, so budget for a paid resident director service if you're doing this fully remotely.
- Registering the company itself does not give you the right to work in it day-to-day in Australia — that still requires an appropriate visa if you plan to be personally on the ground running things.
- ASIC's fees are indexed every 1 July, so the exact registration and annual review numbers creep up slightly each financial year — always check the live ASIC fee schedule before lodging.
- The ASIC registration fee only buys the legal entity and ACN — it does not include the ABN, a company constitution, a registered office service, or tax registration, which is why 'setup cost' quotes online vary so widely.
- If you're not planning to relocate to Australia yourself, you'll need to arrange an Australian-resident director (a paid resident-director service is common) since a Pty Ltd company legally requires at least one local resident director.
- Freelancing as a straightforward sole trader is generally not workable for a non-resident — most overseas founders use a Pty Ltd company instead, even for a one-person consulting business.
- GST registration (10%) only becomes compulsory once your turnover passes AUD 75,000/year, but many founders register earlier anyway so they can claim GST credits on setup costs and equipment.
- Budget for two separate ongoing costs beyond initial setup: the annual ASIC company review fee and a separate annual company tax return lodgement — these apply regardless of how small the business is.
Corporate Tax Rate
- Base Rate Entity Test
- A company qualifies as a base rate entity — and therefore pays 25% instead of 30% — only if its aggregated turnover is under a set threshold AND no more than 80% of its assessable income is passive income (dividends, interest, rent, royalties, capital gains).
- Sole Trader Personal Rate Comparison
- A sole trader pays personal income tax at progressive marginal rates (up to 45% plus Medicare Levy) rather than the flat company rate — company structures generally become more tax-efficient once profits are meaningfully above the point where the marginal personal rate exceeds 25–30%.
- Structure
- two-tier system
- Current Thresholds
- For the 2025–26 income year the aggregated turnover threshold is AUD 50 million, and the passive-income cap is 80% of assessable income.
- Note On Reassessment
- Base rate entity status is not permanent — it must be reassessed every income year based on that year's turnover and income mix.
Standard Rate
- Rate Percent
- 30
- Eligibility
- Applies to companies that don't meet the base rate entity tests.
Base Rate Entity Rate
- Rate Percent
- 25
- Eligibility
- Australian company income tax rate is either 25% or 30% depending on Base Rate Entity (BRE) status.
Freelancer Sole Trader Vs Company For A Foreigner
- No Visa Required To Register
- Registering a company, obtaining an ABN, or making ASIC lodgements can all be done without an Australian visa or physical presence — a visa is only needed if the founder personally intends to live in Australia and work in the business day-to-day.
Pty Ltd Company
- Ownership
- The company can be wholly foreign-owned, has a minimum of one shareholder, and is governed by the Corporations Act 2001.
- Compliance Burden
- Higher than sole trader: a separate company tax return, the annual ASIC review, more detailed financial record-keeping, and director's duties under the Corporations Act — companies are more difficult and expensive to set up and run than a sole-trader operation.
- Residency Requirement
- A Pty Ltd company must have at least one director who is an Australian resident (and any company secretary, if appointed, must also be Australian-resident) — foreigners without a local resident willing to be director typically need to engage a professional resident-director service to meet this.
- Why Foreigners Use It
- The Proprietary Limited (Pty Ltd) company is the structure used by the large majority of overseas founders doing business in Australia because it is globally recognised, offers limited liability, can be 100% foreign-owned, and lets the business apply for an ABN, TFN, GST and PAYG registrations in its own name.
Setup Cost
- ASIC Registration Fee
- A$636
- Annual ASIC Review Fee
- A$342
- Business Name Registration Optional
- A$47
Typical All In Cost For A Foreign Founder Using Professional Services
- Low Estimate
- A$1,500
- High Estimate
- A$6,000
- Note
- Range reflects government fees plus a resident-director/local-agent service, registered office, and ABN/GST setup handled by a corporate services provider; branch registrations tend to sit at the higher end and subsidiary (Pty Ltd) registrations at the lower end of comparable ranges.
Sole Trader Or Partnership
- Liability
- No limited liability — the individual is personally responsible for all business debts, so personal assets are exposed.
- Cost And Admin
- Cheapest and simplest structure: free ABN, no ASIC company registration fee, only a small annual fee if a trading business name is registered, and just one individual tax return lodged per year.
- Availability For Foreigners
- Operating as a sole trader or partnership is generally not a realistic option for a non-resident foreigner — this structure is essentially off the table unless the person actually lives in Australia, since there is no legal separation between the individual and the business and it relies on the individual's own Australian tax residency and TFN.
Foreign Company Branch Alternative
- What It Is
- Instead of incorporating a new Australian subsidiary, an existing overseas company can instead register as a foreign company (branch) carrying on business in Australia, receiving an ARBN rather than an ACN.
- Obligations
- Foreign companies registered this way must maintain a registered office in Australia, display the company's name, appoint a local agent who resides in Australia, and report to ASIC — generally heavier ongoing reporting than a locally incorporated subsidiary.
- When Not Required
- If a foreign company instead simply incorporates a new Australian subsidiary (Pty Ltd) to carry on the business, and the foreign parent itself does not carry on business in Australia directly, the parent does not need to separately register as a foreign company.
Jurisdiction Note
Business/corporate tax law in Australia is set federally by the ATO and company registration is handled nationally by ASIC — there is nothing Cairns-specific about the rules below; a company registered while based in Cairns is taxed identically to one registered in Sydney or Perth.
Filing Obligations
- GST Bas
- GST-registered businesses must lodge periodic (usually quarterly) Business Activity Statements (BAS) reporting GST collected and paid.
- Payg Instalments
- Companies generally pay tax progressively through quarterly PAYG instalments during the year, with a final balancing payment or refund after the annual return is lodged.
- ASIC Annual Review
- A Pty Ltd company must pay an annual ASIC review fee and keep company details (directors, registered office, shareholders) current with ASIC every year.
- Company Tax Return
- A registered company must lodge its own annual company income tax return with the ATO, separate from any personal tax return of its owners/directors.
- Dividends And Franking
- Company profits are taxed once at the 25% or 30% company rate; if profits are then distributed as dividends, franking credits attached to the dividend reduce double taxation for the recipient.
Core Registrations Needed
Core Registrations Needed
- ABN (Australian Business Number) — free, via the Australian Business Register; required for invoicing, GST registration, and dealing with government bodies.
- TFN (Tax File Number) — the company's unique tax ID for filing its corporate income tax return.
- ACN (Australian Company Number) — issued by ASIC only if incorporating a Pty Ltd company (a foreign company registering as a branch instead gets an ARBN).
- PAYG withholding registration — required only if the business will hire employees or pay contractors and needs to withhold tax on their behalf.
- Resident public officer — the ATO requires an Australian-resident public officer to be appointed as the company's tax contact within 3 months of the company starting to derive income.
GST Goods And Services Tax
- Rate Percent
- 10
- Rule
- GST registration becomes compulsory once annual turnover exceeds AUD 75,000; a business under that threshold can register voluntarily to claim input tax credits.
- Status
- Fully legal and regulated
- Mechanics
- GST is a broad-based consumption tax that applies to the supplies of most goods and services, and businesses remit GST collected to the ATO while generally being able to claim credits for GST paid on business purchases.
- Registration Threshold
- A$75,000
Incorporation Process And Requirements
- No Visa Required To Register
- No Australian visa or physical presence is required just to register a company, apply for an ABN, or lodge ASIC paperwork remotely — documents can be signed electronically or posted. A visa is only needed if the foreign owner intends to personally live in Australia and work day-to-day in the business.
- Can A Foreigner Own A Company
- A foreign national or foreign company can own up to 100% of the shares in an Australian company and does not need to be an Australian citizen or permanent resident to do so.
- Local Partner Or Sponsor Mandate
- There is no requirement for a local Australian shareholder or business partner. However, under the Corporations Act 2001 (s201A), every Australian proprietary limited (Pty Ltd) company must have at least one director who "ordinarily resides" in Australia — this is a director-residency rule, not an ownership rule, and a company cannot be registered with ASIC without satisfying it. If the foreign owner cannot personally meet this by living in Australia, the usual workaround is engaging a paid professional resident director / nominee director service. An alternative path — registering as a branch of an existing foreign company (getting an ARBN instead of an ACN) — avoids the resident-director rule but instead requires appointing an Australian-resident local agent who accepts legal responsibility for compliance.
- Jurisdiction Note
- Company incorporation in Australia is a federal (national) process administered by ASIC and the ATO/ABR — it is identical whether the business is based in Cairns or any other Australian city. There is no separate Cairns-specific company registry; local Cairns Regional Council permits (e.g. food business licences, signage, health permits) are a separate, additional layer on top of national incorporation, not covered here.
Timeline
- ABN
- Often instant for Australian residents; foreign applicants may wait several business days for manual review.
- Director ID
- Can take from about 15 minutes to a few days depending on identity-verification steps for non-residents.
- Pty Ltd ASIC Registration
- Typically 1 to 3 business days once all documents (including a Director ID and a qualifying resident director) are in place; can sometimes be completed online within hours.
- Foreign Branch ASIC Registration Form 402
- Around 2 to 4 weeks, since ASIC must review certified constitutional documents from the home jurisdiction.
Typical Cost
- ABN Application
- A$0.00
- ASIC Annual Review Fee
- A$342
- DIY Total Setup Low End
- A$900
- ASIC Pty Ltd Registration Fee
- A$636
- Foreign Branch Registration Fee
- A$636
- Business Name Registration 1 Year
- A$47
- Business Name Registration 3 Years
- A$108
- Resident Director Service Per Year
- A$3,500
- Professional Full Setup Typical Range
- A$2,500
- Note On Costs
- The bare ASIC government fee only creates the legal entity; it does not include a resident director/local agent, registered office service, company constitution, or tax/accounting setup. Total realistic first-year cost for a foreign founder using professional help typically lands well above the bare ASIC fee once a resident director or local agent service is added.
Official Sources
- ASIC (Australian Securities and Investments Commission) — company and foreign company registration
- Australian Business Register (ABR) — ABN applications
- Australian Business Registry Services (ABRS) — Director ID
- Australian Taxation Office (ATO) — GST/PAYG registration
Structure Choice
- Sole trader — simplest, no ASIC company registration, but unlimited personal liability; still requires a free ABN.
- Pty Ltd (proprietary limited) subsidiary — most common choice for foreign founders; separate legal entity, limited liability, requires a resident director.
- Branch of an existing foreign company (registered foreign company, ARBN) — used when trading in Australia under the existing overseas legal entity rather than creating a new one; requires a resident local agent instead of a resident director, and a longer review process.
Steps To Incorporate Pty Ltd
- 1. Choose and reserve a company name (checked for availability via ASIC Connect).
- 2. Obtain a Director Identification Number (Director ID) for every proposed director — mandatory before lodging any registration application, available to non-residents via the Australian Business Registry Services (ABRS) portal.
- 3. Arrange for at least one director who ordinarily resides in Australia (personally, or via a paid resident director service) — non-negotiable for a Pty Ltd.
- 4. Set a registered office address in Australia — must be a street address, not a PO Box.
- 5. Lodge ASIC Form 201 (Application for registration as an Australian company) with company name, registered office, director/shareholder details, share structure, and signed director consents, and pay the ASIC registration fee.
- 6. ASIC issues the Australian Company Number (ACN) and Certificate of Registration.
- 7. Apply separately for an Australian Business Number (ABN) via the Australian Business Register (free) — required to invoice and trade.
- 8. Register for GST and PAYG withholding with the ATO if turnover or employment thresholds require it.
Steps To Register Foreign Branch
- 1. Obtain a Director ID for the foreign company's directors.
- 2. Choose an Australian-resident local agent who will accept legal responsibility for the branch's compliance under the Corporations Act.
- 3. Lodge paper Form 402 with ASIC together with a certified 'ASIC equivalent' certificate of incorporation from the home jurisdiction and a certified copy of the company's constitution (certified no more than 3 months before lodging).
- 4. Pay the ASIC foreign company registration fee.
- 5. ASIC issues an Australian Registered Body Number (ARBN) instead of an ACN.
- 6. Apply for an ABN and register for GST/PAYG as needed.
AI-generated estimateData refreshed July 2026
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Data last updated July 2026 · Verify anything important.