Good to know
Good to Know
- You do not need a visa or Australian citizenship to own shares in, or incorporate, an Australian Pty Ltd company — but you do need at least one director who genuinely lives in Australia on an ongoing basis, which trips up a lot of solo foreign founders.
- If you can't find a resident director yourself, paid resident-director and local-agent services exist, but they're an ongoing annual cost (not one-off), and the person taking on that role carries real personal legal liability under the Corporations Act — choose carefully.
- The headline ASIC registration fee (~AUD 636) is only the government fee; budget separately for professional setup help, especially for the foreign-branch route where certified/apostilled documents are required.
- As of July 2026, ASIC's statutory fees increased slightly from their 2025-26 levels (CPI indexation applies each 1 July), so always check the current ASIC fee schedule before budgeting.
- There's no Margaret River- or WA-specific business tax — company tax, GST, and ASIC/ATO filing rules are set nationally, so the obligations are identical whether the company is based here or in Sydney.
- If you're not planning to live in Australia, budget for a resident director requirement for a Pty Ltd company — you'll likely need to pay for a nominee/resident director service if you don't have a trusted Australian-resident co-founder.
- Freelancing as a plain sole trader from overseas is generally not the practical route for non-residents — most foreign founders end up incorporating a Pty Ltd company even for a small operation, partly because personal tax residency and sole-trader status are closely tied together.
- GST registration only bites once turnover hits AUD 75,000 in a 12-month period — many small nomad-run businesses can legally stay unregistered below that.
Corporate Tax Rate
- Residency Scope
- Australian resident companies are taxed on their global income, while non-resident companies (e.g. a foreign parent operating via an Australian branch) are taxed only on income earned within Australia, generally limited to income linked to a 'permanent establishment' here.
- Foreign Ownership Note
- Foreign ownership does not change the rate — a foreign-owned resident subsidiary is taxed exactly like a locally owned one: 25% if it is a base rate entity, 30% otherwise. However, aggregated turnover counts connected entities worldwide, so a subsidiary of a large foreign group can be pushed into the 30% bracket even if its own Australian turnover is small.
Structure
Base rate entity (small/medium company)
- Rate Percent
- 25
- Eligibility
- Aggregated annual turnover under AUD 50 million, and no more than 80% of assessable income is 'base rate entity passive income' (dividends, rent, interest, royalties, net capital gains).
All other companies
- Rate Percent
- 30
- Eligibility
- Applies to companies that don't meet the base rate entity test above.
Filing And Registration Obligations
- Penalties
- Failure-to-lodge penalties currently run at one penalty unit (AUD 330 / roughly USD 229) per 28 days overdue, capped at AUD 1,650 (roughly USD 1,146) for small entities; multipliers apply for larger/multinational-linked entities.
For Any Structure
- Obtain a free Australian Business Number (ABN) from the Australian Business Register — required for invoicing, GST credits, and to avoid a 47% no-ABN withholding on payments received.
- Register a business name with ASIC if trading under a name other than your own/the company's registered name.
For A Pty Ltd Company Specifically
- Register the company with ASIC (obtains an Australian Company Number/ACN) — a foreign owner needs at least one Australian-resident director; nominee/resident-director services exist for founders with no one based locally.
- Apply for the company's own Tax File Number (TFN), separate from any individual TFN.
- Appoint an Australian-resident 'public officer' with the ATO, generally within 3 months of starting to carry on business — this is the ATO's point of contact for tax matters.
- Lodge an annual company tax return with the ATO (separate from any personal return).
- Complete ASIC's annual company review and pay the annual review fee.
- If turnover is at/above the GST threshold, lodge Business Activity Statements (BAS) on a monthly or quarterly cycle.
- Register for PAYG withholding if the company pays staff or certain contractors.
For A Registered Branch Of A Foreign Company
- Foreign companies carrying on business directly (not via an Australian subsidiary) must register with ASIC as a foreign company and are issued an Australian Registered Body Number (ARBN); this requires a local agent resident in Australia and involves heavier ongoing reporting than a subsidiary.
Structure Comparison For A Foreigner
- Visa Note
- No Australian visa is required just to register a business, ABN, or company remotely — but a visa is required if the foreign owner intends to personally work/manage day-to-day operations on the ground in Australia. (Personal visa/tax-residency mechanics are covered separately under this city's Visa & Legal category.)
Pty Ltd Company
- Liability
- Limited liability — creates a separate legal entity, so personal assets are generally shielded from business debts (subject to normal exceptions like personal guarantees or insolvent trading).
- Who It Suits
- The standard route for overseas founders who want to operate remotely — described as the best fit for the large majority of overseas founders setting up in Australia.
- Tax Treatment
- Pays company tax on profits at the corporate rate (25% or 30% as above) rather than the founder's personal marginal rate; profits distributed as dividends can carry further personal tax consequences for the recipient.
- Key Requirement
- Needs at least one director who is ordinarily resident in Australia — a genuine hurdle for a fully overseas-run business, commonly solved by engaging a paid resident-director service.
Setup Cost
- ASIC Registration Fee
- A$636
- ASIC Annual Review Fee
- A$342
- Optional Business Name Registration Per Year
- A$47
Foreign Company Branch
- Who It Suits
- An overseas company that wants to trade in Australia directly under its existing name rather than via a local subsidiary.
- Key Requirement
- Must register with ASIC as a foreign company (ARBN) and appoint a local agent resident in Australia; involves heavier ongoing reporting than a Pty Ltd subsidiary.
- Typical Setup Cost Estimate
- Industry estimates put a foreign branch registration, including professional fees, in the range of roughly AUD 4,000–6,000, versus roughly AUD 1,500–3,000 for setting up a subsidiary instead.
Sole Trader Or Freelancer
- Setup
- Free ABN application; a small annual fee only if registering a trading name other than your own; minimal ongoing compliance (one individual tax return).
- Liability
- Unlimited personal liability — no separation between the individual and the business.
- Who It Suits
- Individuals who are actually resident in Australia (e.g. on a relevant visa) and personally doing the work.
- Practical Reality For A Non Resident Foreigner
- In practice this route is generally not workable for someone based overseas — most guidance treats sole trader/partnership status as off the table for non-residents unless they are living in Australia, since it ties business income directly to an individual's own personal tax return and TFN.
GST
- Status
- Fully legal and regulated
- Registration Threshold
- A$75,000
- Note
- Registration for Goods and Services Tax (10%) is mandatory once turnover reaches or is likely to reach this threshold; voluntary earlier registration is allowed.
Scope Note
Corporate/business tax in Australia is administered federally by the ATO — there is no separate Margaret River (local council) or Western Australia state-level corporate income tax. All figures below apply the same way whether the company trades from Margaret River or anywhere else in Australia.
Dividend Withholding On Repatriation
- Note
- Dividends paid to non-resident shareholders are generally subject to withholding tax of up to 30% (unfranked), reduced to typically 5–15% under a relevant double tax agreement (DTA); Australia has DTAs with more than 40 countries. There is no DTA with some jurisdictions (e.g. Hong Kong), meaning the full unfranked rate can apply there.
Incorporation Process And Requirements
- Can A Foreigner Own 100 Percent
- Yes. There is no requirement to be an Australian citizen or permanent resident to own shares in, or otherwise own, an Australian company.
- Jurisdiction Note
- Company registration in Australia is a national (federal) process handled by the Australian Securities and Investments Commission (ASIC) and the Australian Business Register — there is no separate Margaret River or Western Australia state-level company registry. A nomad or foreign founder based in Margaret River would use the exact same national process as anyone else in Australia.
Costs
- ABN Registration
- A$0.00
Free via the Australian Business Register.
- Annual ASIC Review Fee
- A$342
Recurring annual fee to keep a company/branch registered.
- Pty Ltd ASIC Registration Fee
- A$636
Statutory ASIC fee for Form 201, effective from 1 July 2026 (was AUD 611 until 30 June 2026 — fees are CPI-indexed annually).
- Business Name Registration 1 Year
- A$47
- Business Name Registration 3 Year
- A$108
- Foreign Company Branch ASIC Registration Fee Form 402
- A$636
Same statutory fee as a Pty Ltd, but total branch setup cost is higher due to certified/apostilled document requirements and a mandatory local agent.
Professional Setup Fees Typical Range
- Amount USD Low
- 347
- Currency Local
- AUD
- Amount USD High
- 1041
- Amount Local Low
- 500
- Amount Local High
- 1500
- Note
- Typical range charged by an accountant/registered agent for lodging the ASIC application, constitution, and consent documents on top of the statutory fee, for a straightforward Pty Ltd.
Resident Director Service Annual Cost
- Amount USD Low
- 1041
- Currency Local
- AUD
- Amount USD High
- 4164
- Amount Local Low
- 1500
- Amount Local High
- 6000
- Note
- Ongoing annual cost if a foreign founder has no Australia-resident person to act as director and hires a professional nominee/resident director service.
Foreign Branch Total First Year Estimate
- Amount USD Low
- 2429
- Currency Local
- AUD
- Amount USD High
- 6944
- Amount Local Low
- 3500
- Amount Local High
- 10000
- Note
- Includes ASIC fee, document certification/translation, local agent, and registered office for the branch route.
Realistic Timeline
- Foreign Branch
- ASIC typically processes Form 402 within 14–28 business days once all documentation is complete and correctly certified. Gathering and certifying/apostilling constitutional documents in the home jurisdiction beforehand commonly adds another 4–8 weeks, so realistic end-to-end timing is closer to 2–3 months.
- Pty Ltd Subsidiary
- Once a resident director and DIN are in place, ASIC generally processes the Form 201 application online within 1–3 business days, sometimes within a few hours; the ACN/certificate is issued on approval.
- Biggest Time Bottleneck For Foreigners
- Securing a genuinely Australia-resident director (or a compliant resident-director service) before lodgement, and — for the branch route — certifying/apostilling home-country company documents, are the steps most likely to slow things down, not the ASIC processing itself.
Official Government Links
- ASIC Fees Information Sheet
- https://www.asic.gov.au/for-business-and-companies/forms-and-fees/all-fees/fees-for-commonly-lodged-documents/
- Australian Business Register
- https://www.abr.gov.au/
- ASIC Register Foreign Company
- https://www.asic.gov.au/for-business-and-companies/foreign-companies/register-a-foreign-company-in-australia/
Step By Step Process Pty Ltd
- 1. Decide on structure (Pty Ltd is the standard choice for most foreign founders) and choose a company name not already registered in Australia.
- 2. Arrange an Australian-resident director (personally, an employee, or a paid resident-director service) — this is mandatory before lodging the application.
- 3. Each director obtains a Director Identification Number (DIN) via the Australian Business Registry Services before appointment — this is free but mandatory.
- 4. Lodge ASIC Form 201 (Application for Registration as an Australian Company) online, including director consents.
- 5. ASIC issues an Australian Company Number (ACN) and Certificate of Registration once approved.
- 6. Register for an Australian Business Number (ABN) via the Australian Business Register — free, and usually needed to trade, invoice, and deal with tax.
- 7. Register for GST if annual turnover is expected to exceed AUD 75,000.
- 8. Maintain a registered office address in Australia for official correspondence.
Local Partner Or Sponsor Mandate
- Detail
- For a Pty Ltd (the standard route), Australia does not require a local partner or local shareholder, but it does require at least one director who 'ordinarily resides' in Australia. Corporate law does not require this person to be an Australian citizen — a permanent resident or long-term visa holder living in Australia can qualify — but if a foreign founder has no such person, they generally need to hire a paid resident director / nominee director service or itself relocate and satisfy residency to act as director. If a company has multiple directors, only one needs to be Australian-resident; other directors can be based anywhere.
- Applies
- Yes
- Alternative If No Resident Director
- Register instead as a foreign company branch (using the existing overseas legal entity) rather than incorporating a new Pty Ltd. A branch does not need a resident director, but it must appoint a local agent registered with ASIC who accepts legal documents on the company's behalf.
Structures Available To Foreigners
- Sole trader — cheapest, simplest, unlimited personal liability, no ASIC company registration needed
- Partnership
- Proprietary limited company (Pty Ltd) — most common choice for foreign founders wanting limited liability and a local legal entity
- Trust (with a corporate trustee)
- Registered branch of an existing foreign company (not a new Australian entity — operates under the overseas company's own legal identity)
Step By Step Process Foreign Branch
- 1. Choose a company name not already used in Australia.
- 2. Appoint a local agent registered with ASIC (required under section 601CG of the Corporations Act) — no resident director needed for this structure.
- 3. Lodge Form 402 (Application for Registration as a Foreign Company) with certified/apostilled constitutional documents from the home jurisdiction (certified true copy, dated no more than 3 months before lodgement).
- 4. ASIC issues an Australian Registered Body Number (ARBN) on approval.
- 5. Register for ABN and GST as applicable.
- 6. Ongoing: lodge annual returns (Form 6010) and financial statements, and keep local agent/registered office current.
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
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Data last updated July 2026 · Verify anything important.