How to start a business as a foreigner in Australia
Synopsis
Learn how foreign entrepreneurs can start a business in Australia, covering ABN, registration, GST, visas, tax compliance, and key considerations.
A step-by-step guide for foreigners to legally start, register, and operate a business in Australia, including visas and taxes.
Key Highlights:
- Over 2.9 million active businesses in Australia; small businesses dominate (~97–98%).
- Foreign nationals can own businesses, but resident directors are required for companies.
- ABN registration, GST, licenses, and visas are mandatory for operational compliance.
- Corporate tax ranges from 25–30%, GST 10%, and withholding taxes apply to non-residents.
- Around 60% of businesses operate without employees; migrants significantly contribute to small business activity.
A foreigner can start and operate a business in Australia by registering a business entity, obtaining an Australian Business Number (ABN), meeting visa requirements if they plan to work in the business, and complying with tax and legal regulations set by authorities such as the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC).
Australia has a large base of registered businesses and a structured regulatory system. According to the Australian Bureau of Statistics (ABS), there were around 2.9 million active businesses in 2025, with most classified as small businesses. Data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) shows that small businesses account for about 97–98% of all businesses.
| Australia Business Snapshot (ABS, ASBFEO) | Approx. Figures |
|---|---|
| Total active businesses | ~2.9 million |
| Small business share | ~97–98% |
| Businesses < $2M turnover | ~90%+ |
| Non-employing businesses | ~60% |
Can foreigners start a business in Australia?
Foreign nationals are allowed to start and own businesses in Australia. There are no general restrictions on ownership in most sectors.
Some investments may require approval from the Foreign Investment Review Board (FIRB). Screening thresholds for many business investments are typically around AUD 310 million, depending on the sector and applicable agreements.
All businesses must follow Australian laws, regardless of where the owner lives.
Do I need a visa to start a business in Australia?
A visa is not required to own a business. However, a visa is required to work in or manage the business while physically present in Australia.
Business-related visa options include investment and innovation streams, as well as skilled or employer-sponsored visas. Processing timelines vary depending on the visa category and application details.
What business structures are available for foreigners in Australia?
Australia allows different types of business structures:
| Structure | Description | Use case |
| Sole Trader | Single owner | Limited for non-residents |
| Partnership | Two or more owners | Small businesses |
| Company | Separate legal entity | Common for foreign founders |
| Trust | Assets held for beneficiaries | Specific financial setups |
Companies are commonly used by foreign owners because they allow shared ownership and limited liability.
Do I need an ABN to run a business in Australia?
An Australian Business Number (ABN) is required to operate a business. It is issued through the Australian Business Register.
An ABN is needed to:
- Issue invoices
- Register for Goods and Services Tax (GST)
- Deal with the Australian Taxation Office
The ATO states that if a business does not provide an ABN, payments may be subject to withholding tax of up to 47%.
How long does it take to register a business in Australia?
The registration process is usually completed within a few days, but full setup may take longer.
| Business Setup Timeline | Time Required |
|---|---|
| ABN registration | 1–3 days |
| Company registration | 1–2 days |
| Bank account setup | 3–10 days |
| Licenses/permits | 1–4 weeks |
Timeframes may vary based on banking checks and licensing requirements.
How much does it cost to register a business in Australia?
Costs depend on the type of business and services used.
| Estimated Setup Costs (AUD) | Amount |
|---|---|
| Business name registration | $39–$92 |
| Company registration (ASIC) | ~$576 |
| ABN registration | Free |
| Professional services | $500–$2,000+ |
Ongoing costs may include accounting, reporting, and insurance.
Can non-residents own a company in Australia?
Non-residents can own Australian companies. However, certain conditions apply:
- At least one company director must live in Australia
- The company must have a registered address in Australia
- Reporting and compliance requirements must be met
This structure is commonly used by foreign founders.
What taxes do foreign business owners pay in Australia?
Businesses operating in Australia are taxed on income earned in the country.
| Tax Structure (ATO) | Details |
|---|---|
| Corporate tax (base rate) | 25% |
| Corporate tax (standard) | 30% |
| GST | 10% (threshold: AUD 75,000) |
| Withholding taxes | Applies to non-residents |
The ATO requires GST registration when annual turnover exceeds AUD 75,000.
Australia has tax agreements with more than 40 countries to avoid double taxation.
Key steps to start a business in Australia as a foreigner
Step-by-Step Business Setup Flow
1. Choose a business structure: Sole trader / Partnership / Company
2. Apply for an ABN: Required for tax and invoicing
3. Register the company (if applicable): Via ASIC
4. Register for GST (if required): Mandatory if turnover ≥ AUD 75,000
5. Open a business bank account: Needed for financial operations
6. Apply for licenses and permits: Depends on industry and location
7. Check visa requirements: Ensure legal eligibility to operate
Startup activity and migrant participation
Australia has a large number of small and independent businesses. ABS data shows that around 60% of businesses operate without employees, indicating a high number of sole operators.
There is no official figure that separates foreign-founded businesses. However, migration data and industry patterns show that overseas-born individuals contribute significantly to small business activity, especially in service-based sectors.
Key factors to consider
- Visa requirements for managing the business
- Requirement for a resident director
- Tax obligations in Australia and overseas
- Access to banking services
- Industry-specific licensing rules
Quick checklist
| Checklist for Starting a Business in Australia |
|---|
| Register business and obtain ABN |
| Confirm visa eligibility |
| Appoint resident director |
| Register for GST if required |
| Open bank account |
| Maintain tax compliance |
FAQs
Q1. Can foreigners legally own a business in Australia?
Yes, foreign nationals can start and own businesses, subject to resident director requirements.
Q2. Do I need a visa to operate a business in Australia?
Visa is required only to work in or manage the business physically in Australia.
Q3. What is an ABN and why is it needed?
An Australian Business Number identifies the business for tax, invoicing, and compliance purposes.
Q4. How long does business registration take?
ABN: 1–3 days, Company registration: 1–2 days, licenses and permits: 1–4 weeks.
Q5. What taxes do foreign business owners pay?
Corporate tax: 25–30%, GST: 10% (if turnover ≥ AUD 75,000), withholding taxes for non-residents.
To know more such tips related start-ups finance, keep reading at Inspirepreneur Magazine.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
