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If you’re not a resident of Australia and you’re thinking of expanding your business operations across borders, then Australia remains a great place to consider in 2025. The nation continues to be a hotbed for innovation and business opportunities, attracting international companies eager to capitalise on its robust economic and regulatory environment.
Australia enjoys a strong economy and is both socially and politically stable, creating a solid foundation on which to plant the roots of your venture. This stability, combined with modern infrastructure and forward-thinking regulatory updates, makes Australia an ideal destination for foreign businesses.
However, setting up a business in Australia from overseas requires careful consideration of various legal and commercial obligations. Major factors that need to be accounted for include:
- The process of registering a foreign business in Australia
- Compliance with current tax obligations and regulatory bodies
- Having the correct legal documents in place
In this article, we’ll walk you through key legal considerations and best practices to ensure a smooth process when establishing your business presence in Australia from overseas in 2025.
Can I Set Up A Business In Australia From Overseas?
Yes, you can expand your business to Australia as long as you meet all the legal requirements, complete the necessary documentation, and follow the process diligently. With modernised online registration systems and updated regulatory frameworks, establishing your presence is now more straightforward than ever.
Expanding into the Australian market has been an attractive option for many business owners. Beyond its stable economy, Australia is a participant in numerous contemporary free trade agreements that offer cost efficiencies and market access benefits. Additionally, the country’s ongoing digital transformation means that processes—from registration to compliance—are becoming increasingly streamlined.
Australia opens up new opportunities for businesses looking to extend their reach overseas, whether you are planning to set up a local office, a digital presence, or a full-scale subsidiary.
Depending on your business’ long-term goals, you’ll need to decide on the optimum way to establish your operations locally. A common and effective method is setting up a subsidiary.
Setting Up A Subsidiary
Setting up a subsidiary in Australia means that your local operation is treated as a separate legal entity. This structure is particularly attractive as it can limit your liability for any debts or legal issues arising in the Australian market. For further insight into business structures and their implications, read our guide on how business structure matters.
When establishing your subsidiary, you must carefully consider which business structure suits your needs—be it a partnership, a company, or operating as a sole trader. Each option impacts your operations, liability, tax obligations, and administrative requirements. Our article on partnership structures provides additional clarity for those considering a collaborative approach.
It’s also important to remember that a holding company can still be liable for its subsidiary’s debts under certain circumstances. Ensure that your corporate structure and documentation fully comply with current laws to uphold any benefits of limited liability.
Next, you will need to have the following arrangements in place:
- An Australian address and an account with a local bank (many banks now offer streamlined digital solutions for overseas businesses)
- A registered company name that complies with Australian naming rules
- Application for an Australian Business Number (ABN) and an Australian Company Number (ACN) or ARBN if you are a foreign entity
- Hiring a local representative for the subsidiary
Coordinating all these factors is essential to successfully set up your subsidiary. If you need assistance during this process, don’t hesitate to contact us.
How Do I Register A Business In Australia?
Registering a business in Australia is now easier than ever. You can complete the process online via the Business Registration Service or directly through the Australian Securities and Investments Commission (ASIC). The streamlined digital verification procedures introduced in recent years ensure that both domestic and foreign companies can register with minimal hassle.
Once registered, your business will be issued an ABN (or an ARBN if you are a foreign entity). Do note that if you are a foreign company, the requirements may differ slightly. For more information on setting up your business, see our guide on legal requirements for starting a business.
Setting Up An Online Business In Australia
ARBN Or ABN
Acquiring the appropriate business number is crucial, as it is how your business is identified in government and commercial transactions. Australian‐originated businesses generally apply for an ABN; however, foreign companies will typically receive an ARBN. Recent digital updates now allow for instant verification, significantly reducing turnaround times.
Tax File Number (TFN)
A Tax File Number (TFN) is required when you receive income from an Australian source that isn’t limited to royalty payments, interest, or dividends. If your business in Australia begins to generate profits, you will need to apply for a TFN through a free online application process provided by the ATO. Additionally, in 2025, you should also consider whether GST registration is necessary based on your turnover threshold.
Business Name
When setting up a foreign business in Australia, be prepared for the possibility that your existing business name may already be in use locally. It might be necessary to select a slightly altered name that still captures your brand identity. You can check name availability on the business names registry. Once you’ve found an available name, you can register it online.
Tax Obligations
Operating in Australia means you will need to comply with local tax laws. Taxes in Australia are generally levied on profits earned from operations within the country. As of 2025, ensure you’re aware of any updates to tax brackets, digital economy levies, or new relief schemes by consulting the latest ATO guidelines. For more guidance on tax and other legal obligations, check out our article on legal requirements for starting a business.
ACL Compliance
Australian Consumer Law (ACL) remains the primary regulatory framework governing the conduct between businesses and consumers. In 2025, adherence to ACL is even more critical as digital marketing and online sales continue to grow. Familiarise yourself with ACL provisions concerning misrepresentation, consumer guarantees, warranties, returns, and refunds. For further reading, explore our guide on avoiding misleading conduct.
Compliance with ACL not only shields your business from legal disputes but also strengthens consumer trust—an essential factor in the competitive 2025 marketplace.
Any Additional Requirements For Companies
It’s important to note that companies and other business structures have distinct requirements. If you are establishing a foreign company in Australia, you will need to apply for an ARBN in addition to an ACN. The ASIC now offers enhanced digital solutions, including additional forms specifically for foreign companies (learn more here).
Moreover, companies must meet strict requirements regarding auditing, management, reporting, and organisational structure—details that are comprehensively outlined in the Corporations Act 2001. Be sure to review these criteria to avoid unexpected complications.
What Documents Do I Need?
Gathering the right legal documentation is just as important as having a brilliant business idea. You want to safeguard your intellectual assets and formalise your interactions with various parties. Here are some of the key documents you should have in place as you establish your business operations in Australia:
Employment Agreements
If you are hiring workers in Australia, it is essential to comply with local employment standards. Fair Work Australia governs wages, leave entitlements, awards, and working hours. To build a solid relationship with your employees and avoid future disputes, ensure their contracts are comprehensive. For a detailed explanation of what makes an employment contract effective, check out our article on employment contracts.
Privacy Policies
If any part of your business operates online, you must comply with the Privacy Act 1988 and Australia’s Privacy Principles. All companies that collect personal customer information are legally required to display a Privacy Policy on their website. This document should work in tandem with your Terms and Conditions and Cookie Policy to ensure full legal compliance.
With recurring updates in privacy law into 2025, keeping your policies current is crucial—reach out to our team for professional assistance if you need help updating your Privacy Policy.
Founders Term Sheet
If you are operating as a company, it is likely that your business has a Founders Term Sheet that outlines significant details regarding dividends, directors, shares, and other key matters. As your business grows, especially with new investors or partners, it is advisable to update this document to reflect current agreements and expectations.
Business Plan
A business plan is a vital document created during the early stages of your venture. For a foreign business entering the Australian market, this plan should be updated or even completely revised in light of the latest market conditions, digital trends, and consumer preferences in 2025. A well-prepared business plan will help you navigate new competition and economic challenges effectively.
Supply Agreements
Supply Agreements formalise the relationship between your business and your suppliers, outlining dispute resolution, payment terms, product or service details, delivery schedules, and warranties. Having robust supply agreements is particularly important when managing international supply chains or local partnerships.
These agreements help minimise disruptions and ensure your operations continue smoothly. For additional guidance on drafting contracts that hold up across multiple jurisdictions, see our article on internationally enforceable contracts.
Can I Go Into Business With A Foreign Partner?
Yes, foreign businesses can comfortably venture into the Australian market with the support of a resident Australian partner. The legal and regulatory considerations discussed throughout this article still apply, with the added benefit of having local market expertise on board.
A local partner can help you navigate cultural, legal, and economic nuances more effectively. Be sure to formalise your relationship with a detailed Partnership Agreement to outline roles, responsibilities, and dispute resolution measures from the outset.
Can I Hire Overseas Workers?
Hiring overseas workers is a common practice; however, it must be managed with care to comply with both Australian Fair Work regulations and the employment laws of the worker’s home country. In 2025, as remote and hybrid work models become the norm, ensuring fair contractual terms has never been more important.
Australian Fair Work standards may still apply if overseas workers have a ‘sufficient connection’ to Australia. It is advisable to seek professional legal advice on how best to structure these arrangements so that you remain compliant on all fronts.
For more on dealing with employment complexities, check out our insights on employment contracts.
Key Takeaways
Starting a foreign business in Australia in 2025 is an exciting opportunity, provided you comply with all legal requirements. Here’s a quick recap of the main points:
- Depending on your business structure (company, sole trader, or subsidiary), you may need an ABN, ACN, or ARBN.
- Online forms and applications to register your business are available through ASIC and the Business Registration Service.
- Tax obligations, including potential GST registration and obtaining a TFN, depend on your business activities in Australia.
- Compliance with Australian consumer and employment regulations, as well as ACL requirements, is essential for legal and operational success.
- Legal documentation such as Founders Term Sheets, Employment Contracts, Contractor Agreements, and Supply Agreements must be in place.
- For further details, consult our Legal Guides which cover these topics in depth.
Expanding your business into Australia not only opens up new markets but also provides access to advanced technological infrastructure and a stable legal framework that protects your commercial interests. With continual updates to regulatory standards and digital processes in 2025, now is an ideal time to seize the opportunity. Our team at Sprintlaw stays on top of every legislative change to ensure your expansion is as smooth and compliant as possible.
There’s a lot that goes into setting up a foreign business in Australia—so consider getting professional legal services to assist with every step of your journey.
If you would like a consultation on setting up a foreign business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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