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Setting up a Canadian company in Australia can be a highly advantageous way to expand your business globally in 2025. With Australia’s robust commercial environment, stable economic conditions, and a commitment to innovation, the Australian market continues to be a prime destination for international expansion.
There are several legal aspects to consider before making the leap – we’ll discuss them in this article. Mainly, it’s important to consider:
- The requirements for registering a company in Australia
- Whether you will be setting up as a subsidiary or a branch
- Important contracts and agreements
- The regulatory bodies you need to report to
- Tax obligations, including GST and corporate filings
Once you have ensured you’ve covered all the main legal concerns, you’ll be one step closer to venturing down under for business in 2025.
Why Should I Expand My Canadian Business To Australia?
Australia and Canada continue to share strong diplomatic ties, a collaborative trade relationship, and similar socio-political and legal frameworks. This means that the transition from operating in Canada to establishing a presence in Australia is relatively smooth and promising.
The robust partnerships between Australia and Canada have led to the establishment of not-for-profit organisations such as the Canadian Australian Chamber Of Commerce (CACC), which actively facilitate and promote commercial interactions between the two nations. Leveraging these networks can be invaluable for your market entry strategy.
As the relationship between Australia and Canada continues to evolve in 2025, it’s a particularly opportune time for Canadian companies to broaden their reach and capitalise on Australia’s dynamic market.
Can A Foreigner Register A Company In Australia?
Yes, Australian business laws permit foreign companies to register and operate within Australia. However, the method you choose will dictate the processes you need to follow.
There is a clearly defined registration process, associated fees, and local rules and regulations that must be adhered to. Keep reading to find out more details about the steps involved.
Free Trade Agreements
In 2025, Australia is party to multiple free trade agreements across regions including the Americas, Asia, and the Pacific. For Canadian companies expanding to Australia, these trade agreements can reduce tariffs and streamline customs procedures, helping to eliminate much of the red tape often encountered when trading internationally.
How Do I Register My Company In Australia?
The Australian Securities and Investments Commission (ASIC) is the primary regulatory body responsible for company registration in Australia. All registrations must be completed through ASIC’s online portal.
You can find the forms and detailed instructions to register your company online. The main steps involved include:
- Registering a company name
- Attaining a unique identifying number
- Filling out all the relevant forms
- Providing supporting documentation
- Having an Australian address and local agent
After you have submitted all required documents and met the necessary conditions, your company can be legally registered in Australia.
Local Subsidiary Company Vs Branch Office
An important decision when establishing a Canadian company in Australia is whether to operate as a branch or a subsidiary. Both options have their benefits:
A subsidiary is a separate legal entity, typically owned wholly or in part by the parent company. This structure limits the parent company’s liability based on the shareholding, while offering tax and operational advantages.
A branch is simply an extension of your main company, meaning you will bear full liability for its operations. The choice between a branch and a subsidiary depends on your risk appetite, operational requirements, and long-term business strategy.
What Else Should I Consider?
Beyond the basic formalities, there are several additional considerations to ensure your business is well-prepared for the Australian market.
Competition
Conduct thorough and up-to-date market research to understand the competitive landscape in Australia. Identifying what your local competitors offer can help you differentiate your products or services, particularly in a dynamic market environment like Australia’s in 2025.
It is also essential to comply with Australian Consumer Laws and ensure that any exclusivity clauses in your contracts are reasonable and fair.
Shipping
Shipping goods to and from Australia requires an in-depth understanding of customs, duty regulations, and the latest Border Force requirements. With regulatory frameworks continuously updated in 2025, staying informed is critical.
Foreign vessels entering Australia with goods are subject to specific tax and duty obligations. A legal expert can help clarify the relevant requirements, ensuring you remain compliant. Additionally, if your supplier is based overseas, it’s recommended to have a comprehensive Supply Agreement outlining all key terms.
Market Entry
Adapting your product offerings and business model to the local culture and economic climate is key. In 2025, factors such as pricing strategies, local consumer preferences, and cultural sensitivities can significantly impact your success in the new market.
Internationally Enforceable Contracts
When expanding internationally, it is essential to ensure that your contracts are enforceable across all the jurisdictions in which you operate. This includes incorporating clauses that allow for judgments to be recognised in both Canada and Australia. For guidance on this matter, refer to our guide on drafting internationally enforceable contracts.
Ecommerce Terms & Conditions
If your business operates online, it is crucial that your website’s terms and conditions comply with Australian law. This ensures transparency and builds trust with your Australian clientele.
To help meet these regulatory requirements, we offer a tailored online service terms and conditions package at a fixed fee, designed specifically for businesses entering the Australian market.
How Do I Set Up My Canadian Company In Australia?
ACN or ARBN
A common question for foreign companies is whether to obtain an Australian Company Number (ACN) or an Australian Registered Body Number (ARBN). While an ACN is typically used for companies based in Australia, foreign entities generally register using an ARBN.
Do Foreign Companies Pay GST In Australia?
We always recommend consulting a financial professional to understand which tax obligations apply to your situation. Generally, a foreign business that has operated in Australia for more than 183 days within a 12‐month period is required to register for Goods and Services Tax (GST), provided its annual turnover from Australian operations exceeds $75,000.
Corporate Filings
Annual corporate filings are a critical part of maintaining your company’s legal standing. Depending on your business structure – whether it’s a company, partnership, or sole trader – your filing requirements will differ. For instance, companies must undergo annual audits and submit financial statements to ASIC.
In 2025, with enhanced digital reporting options and streamlined processes, keeping up with corporate filings is more straightforward. Regular audits, board resolutions, and updates on changes in shareholding or directorship are essential to avoid non-compliance and potential fines. If you’re unsure about your obligations, our team can help clarify your requirements – learn more about business structures and their compliances.
Business Name Or A Company Name
When setting up your company, you may need to register a separate business name if it differs from your registered company name. For example, your company name might be “Green Apple Juice Pty Ltd,” while your trading name could simply be “Green Apple Juices.” For more details, refer to our comparison of business names versus company names. If you’re unsure which option suits your expansion strategy best, our guide on does business structure matter can provide valuable insights.
What Do I Tell ASIC?
Once your Canadian company is established in Australia, your ongoing relationship with ASIC is vital. ASIC requires you to submit annual reports and notify them of any significant changes to your company’s details, such as:
- A change in director
- Shareholders joining or leaving the company
- Changes to your registered address or location
- Alterations in the company structure
- Any important financial disclosures
Maintaining your obligations to ASIC is critical, as non-compliance can result in significant fines and damage your company’s reputation.
Key Takeaways
Expanding a Canadian company to Australia in 2025 offers many benefits, but careful attention to legal and regulatory details is essential. Ensuring your business legals are in order not only paves the way for a successful market entry but also helps safeguard your interests in a competitive landscape.
To summarise:
- Registering a foreign company in Australia requires accurate completion of forms and proper supporting documentation.
- It’s crucial to understand whether you need an ARBN, a company name, or a business name – and you can decide based on your business structure.
- You have the option to set up as either a subsidiary or a branch, each with distinct legal implications.
- Tax obligations, shipping regulations, and contract enforceability must be carefully managed.
- Getting to know the local market and staying informed on regulatory updates is key to your success.
As 2025 brings new developments in international business law, it is more important than ever to have up-to-date legal advice. At Sprintlaw, we stay on top of these changes so that you can focus on growing your business.
Here at Sprintlaw, we can help with all of these aspects! If you would like a consultation about expanding your Canadian business to Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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