How to start a business in Australia as a foreigner (2026)

Legal framework

Corporations Act 2001 (Cth), administered by the Australian Securities and Investments Commission (ASIC); Foreign Acquisitions and Takeovers Act 1975 administered by the Foreign Investment Review Board (FIRB); Australian Business Register (ABR) for ABN/tax registrations.

Key points: starting a business in Australia

1. 01Foreign ownership

   100% foreign ownership of an Australian proprietary company is generally permitted; there is no general cap for private investors. FIRB pre-approval is only required where thresholds are crossed (e.g. AUD 347m for non-sensitive business acquisitions in 2026, lower for sensitive/agriculture/media) or where the acquirer is a foreign government investor.

   firb.gov.au whitecase.com

2. 02Choose structure and register with ASIC

   Most foreign founders incorporate a Pty Ltd (subsidiary) by lodging ASIC Form 201; a foreign parent can alternatively register a branch as a 'foreign company' under Part 5B.2 of the Corporations Act. The ASIC registration fee is AUD 611 (rising to AUD 636 from 1 July 2026) and processing is typically 1-3 business days.

   asic.gov.au asic.gov.au

3. 03Resident director requirement

   Under s201A of the Corporations Act 2001, a proprietary company must have at least one director who ordinarily resides in Australia (public companies need at least two). Every director, including foreign nationals, must first obtain a Director Identification Number (Director ID) from the Australian Business Registry Services.

   www5.austlii.edu.au abrs.gov.au

4. 04No minimum capital

   Australia does not impose a statutory minimum paid-up capital for proprietary or public companies; a Pty Ltd can be formed with a single share of nominal value. Concepts of authorised capital and par value were abolished in 1998.

   asic.gov.au asic.gov.au

5. 05Tax and business registrations

   After incorporation, businesses typically register (free) for an Australian Business Number (ABN) via the Australian Business Register, register a business name with ASIC if trading under a name other than the company's, and register for GST if turnover is expected to exceed AUD 75,000. All can be done in one online session via the Business Registration Service on business.gov.au.

   business.gov.au register.business.gov.au

6. 06Timeline and cost benchmark

   The World Bank's Doing Business dataset ranked Australia 7th globally for 'Starting a Business' with 3 procedures, ~2 days to complete, cost of 0.7% of income per capita, and 0% paid-in minimum capital. Practical setup for a foreign founder (incorporation, Director ID, ABN, bank account) typically runs 1-4 weeks, most of the delay being KYC for opening a bank account.

   archive.doingbusiness.org business.gov.au

Timeline of decisions

1. 1 Jul 2025Decision · official
   ASIC indexes company and business-name fees

   Standard proprietary company registration fee rose to $611 and the annual review fee to $329 under ASIC's annual CPI fee indexation, marginally raising the cost of incorporating and maintaining a company.

   ASIC

2. 25 Mar 2025Decision · official
   2025-26 Budget funds ASIC RegistryConnect to stabilise registers

   The federal Budget committed significant funding to ASIC's RegistryConnect program to stabilise and uplift the company and business-name registers after the failed modernisation effort, the key step in returning registry administration to ASIC.

   ASIC

3. 28 Aug 2023Decision · official
   Government halts Modernising Business Registers program

   Assistant Treasurer Stephen Jones cancelled the MBR program after an independent review found costs could reach $2.8 billion (over five times the original estimate); registry functions are to return from the ATO to a new ASIC division, reshaping who administers business registration.

   Australian Taxation Office

4. 30 Nov 2022Enforcement · official
   Director ID deadline for existing directors

   All directors appointed on or before 31 October 2021 had to obtain a director identification number by this date; the ABRS applied a pragmatic compliance approach to applications lodged by 14 December 2022, with over 1.8 million directors registered.

   Australian Taxation Office

5. 1 Nov 2021Law · official
   Director identification number regime commences

   The new director ID requirement launched via the Australian Business Registry Services, requiring every company director to verify their identity once and hold a lifelong unique identifier to combat illegal phoenixing and fraudulent directorships.

   Australian Business Registry Services (ABRS)

6. 22 Jun 2020Law · official
   Modernising Business Registers program legislated

   The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 authorised consolidating the ABR and 31 ASIC registers onto a single ATO-run platform (ABRS) and created director IDs, aiming to streamline business registration.

   Australian Taxation Office

7. 28 May 2012Law · official
   National Business Names Register commences

   Under the Business Names Registration Act 2011, ASIC replaced eight separate state and territory business-name registers with a single national online register and fee, automatically transferring existing compliant registrations.

   AustLII / Commonwealth legislation

8. 1 Jul 2001Law · official
   Corporations Act 2001 and ASIC Act 2001 commence

   Following a referral of powers from the states, these Acts established the uniform national corporate-law framework still governing company formation, directors' duties and ASIC's role as the single national company registrar.

   Federal Register of Legislation

9. 1 Jul 2000Law · official
   ABN and GST introduced; Australian Business Register created

   The A New Tax System (Australian Business Number) Act 1999 introduced the 11-digit ABN as a single business identifier alongside the new GST, replacing multiple agency-specific numbers and establishing the ATO-run Australian Business Register.

   AustLII / Explanatory Memorandum

10. 1 Jul 1998Law · official
    ASC becomes ASIC

    The corporate regulator was renamed the Australian Securities and Investments Commission and given expanded consumer-protection responsibilities, consolidating its role overseeing company registration nationally.

    ASIC

Sources

1. 1.asic.gov.au/for-business-and-companies/starting-a-company-or-business/starting-a-
2. 2.asic.gov.au/for-business-and-companies/foreign-companies/register-a-foreign-compa
3. 3.www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s201a.html
4. 4.abrs.gov.au/director-identification-number
5. 5.business.gov.au/guide/starting
6. 6.register.business.gov.au/
7. 7.firb.gov.au/guidance-resources/guidance-notes/gn02
8. 8.archive.doingbusiness.org/content/dam/doingBusiness/country/a/australia/AUS-LITE.pdf
9. 9.whitecase.com/insight-our-thinking/foreign-direct-investment-reviews-2026-australia
10. 10.asic.gov.au/for-business-and-companies/companies/company-share-and-shareholder-ru
11. 11.asic.gov.au/regulatory-resources/financial-reporting-and-audit/preparers-of-finan
12. 12.business.gov.au/registrations/register-for-an-australian-business-number-abn