Starting a Business in Australia: GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

---

Thinking of starting a business? Australia has a lot to offer. Its tech sector has grown 80% in the past five years, making it one of the strongest options for global expansion. The economy is stable, the systems are clear, and the digital infrastructure is solid. You also get easy access to key Asia-Pacific markets when you register your business in Australia.

For global businesses, Australia offers both opportunity and predictability. It’s a place where you can grow without getting caught up in red tape.

In this guide, GEOS walks you through what it takes to set up a business in Australia. From registration and compliance to hiring and payroll, we break it down so you can move quickly and stay focused on growth.

Why Should You Expand to Australia?

Australia offers a strong, low-risk market with high spending power and access to the Asia-Pacific region.

A Prosperous Market with Strategic Access to Asia-Pacific

The country ranks high on global business readiness, with a GEOS Global Subsidiary Index score of 81.6 and a perfect 10/10 for GDP per capita. Over 73% of working-age people have jobs, and households earn well above the OECD average. That gives you a reliable customer base with money to spend.

The country scores 5/5 on political risk. It has stable governance, clear regulations, and steady policies. The recent election result signals continuity, not disruption. For business, that means fewer surprises when you register your business in Australia and a safer path to long-term growth.

Its location makes it a natural hub for companies targeting Asia-Pacific. You get direct access to fast-growing markets like China and Southeast Asia, without the risks tied to less stable regions. Expanding to Australia means gaining a secure, high-income market with regional reach. It’s a practical choice for companies ready to grow.

Competitive Tax & Business Incentives

Australia offers a fair and well-structured tax system. The standard corporate tax rate is 30%, but small and medium businesses with under AUD 50 million in turnover pay just 25%. To qualify, passive income like rent or interest must stay under 80% of total income. Businesses with an annual turnover of $75,000 or more must register for the Goods and Services Tax (GST).

Employers must contribute 11% to employee superannuation. This is mandatory and adds to payroll costs. Payroll tax may also apply depending on where your employees work. Each state sets its own threshold.

For example, in 2024–25, the monthly threshold is $75,000 in Victoria and $125,000 in South Australia. Managing cash flow is crucial for maintaining financial health, as it helps anticipate income and expenses and predict potential surpluses or shortages.

Local companies pay tax on global income. Foreign companies pay tax only on Australian-sourced income. Tax treaties usually prevent double taxation and limit what Australia can tax.

From 2024, new global tax rules will apply to large multinationals with over €750 million in annual revenue. These include a 15% minimum tax to stop profit shifting and protect local tax revenue.

A few key points to keep in mind when you register your business in Australia:

• 25% tax rate available to smaller businesses that meet income and activity requirements
• Payroll tax only applies if you pass the state-specific wage threshold
• Tax treaties help limit double taxation risks for foreign companies

The rates aren’t the lowest, but the system is clear. That makes Australia a stable and reliable place to do business.

Skilled Workforce & Favorable Hiring Regulations

Australia offers a strong talent pool and a straightforward hiring process. Engineering talent stands out with a perfect 5/5, while finance, sales, and marketing each score a solid 4/5. That kind of availability makes it easier for companies to build well-rounded, high-performing teams.

Employment laws are detailed but predictable. The Fair Work Act outlines employee rights, flexible work rules, and anti-discrimination measures. Employers must pay attention to industry awards and state-specific rules, but overall, the system is well-structured.

Unions are active in sectors like construction and maritime but have a limited presence in tech and professional services. Most businesses can manage union interactions without much difficulty.

In short:

• Talent availability is high, especially for engineering.
• Hiring rules are clear, though slightly complex.
• Union activity is low in professional industries.

Australia gives you access to skilled workers and a stable hiring environment. It’s a solid choice for companies looking to grow in APAC.

How to Set Up a Business in Australia

Setting up a business in Australia starts with picking the right business structure. The structure you choose affects how you pay tax, your legal responsibilities, and how much control you have. It also changes how much paperwork and cost you’re dealing with.

Choosing the Right Legal Structure

Selecting common business structures is crucial as it directly affects tax obligations, legal responsibilities, and overall business operations.

Popular business structures

A Proprietary Limited Company (Pty Ltd) works well for most foreign businesses. It offers limited liability and gives you room to grow. You’ll need at least one Australian resident as a Nominee Director. Registering as a legal entity is crucial as it establishes a separate legal structure from its owners, providing corporate privileges and protection.

Certain company types cannot be registered online and require a paper registration process. For these unavailable company types, you must submit a request with specific details in the online enquiry.

If you’re testing the market, you might choose a Branch Office or Representative Office. These options let you build a local presence without full incorporation.

Other common structures include:

• Sole trader: Simple and cheap to set up. You run the business and take on all the risk.
• Partnership: Good if you’re working with others and want to share profits and decisions.
• Trust: More complex. Often used for asset protection and long-term planning.
• Co-operative: Member-owned, usually for community-focused businesses.

What to think about

Deciding on the best business structure is crucial as it affects:

• What licenses you need
• How much tax you pay
• Whether you’re personally responsible for debts
• How much admin work is involved
• Whether you’re seen as the owner or an employee

When you register your business in Australia, it’s important to understand how the choice of business structure impacts your tax obligations, as different structures have varying requirements and consequences.

Just keep in mind that you can change your structure as your business grows. Many start small, then move to a company setup later. For most foreign-owned businesses, a Pty Ltd gives the right mix of protection and flexibility.

Incorporation & Compliance Essentials

Setting up a company in Australia is a clear process. Most businesses complete registration in one to two months through the Australian Securities and Investments Commission (ASIC). Obtaining a director ID for company directors is a legal requirement under the Corporations Act, ensuring compliance and distinguishing it from an Australian Business Number (ABN).

Registering your company

You can choose a company name or use your Australian Company Number (ACN). If you use a name, it must show your legal structure, like “Pty Ltd.” Register through the Business Registration Service.

Providing the company’s details during the registration process is essential to receive an Australian Company Number (ACN) and apply for a director ID. Decide if your company will be proprietary or public, and know your legal obligations under the Corporations Act.

Paperwork and Compliance

The process is mostly online and runs smoothly. You’ll still need some certified documents, especially if you’re appointing overseas directors. You also need a registered office in Australia. Understanding insurance obligations is crucial to protect your business from financial loss and ensure legal compliance. Overall, paperwork is reasonable and manageable.

Using a private service provider, such as an accountant or solicitor, can facilitate the registration process through ASIC for a fee. These providers offer efficient management of applications and quicker processing times due to direct access to ASIC’s systems.

Financial & Banking Considerations

Australia has a strong, stable financial system. Its banks are well-capitalized, profitable, and have easy access to global markets. The financial infrastructure gets a 5/5 score for good reason, it supports business growth and can handle economic shocks.

Establishing a business bank account is crucial for creating a clear business structure and improving financial management. Managing business income effectively by separating it from personal finances is essential for accurate tax reporting and financial stability.

Banks hold high levels of capital and liquidity. Most funding comes from deposits, but bond issuance remains strong. Even with rising interest rates and market volatility, banks continue to lend and meet regulatory requirements. Stress tests show they can manage tougher conditions without major risk.

Superannuation funds and insurers also remain stable. Returns dipped in recent months due to market drops, but long-term performance holds up. Insurers face rising claims from natural disasters and higher costs, yet their capital positions stay strong.

Tax and Accounting

Australia’s tax system is clear but detailed. It scores 7/10 for complexity. Businesses must manage GST, company tax, and regular financial reports. The rules are well defined, but compliance takes effort.

Lodging a tax return with the Australian Taxation Office (ATO) annually and submitting business activity statements are essential. Businesses with an annual turnover of $75,000 or more are required to register for the Goods and Services Tax (GST). State-level taxes and reporting add more layers.

Ongoing Risks

Cybersecurity and climate change are growing concerns. Recent data breaches have pushed banks and regulators to tighten controls. Managing cybersecurity risks is crucial to protect the business from data breaches and financial loss. Climate-related risks are also being tracked closely. Banks and regulators are developing plans to manage them, but reporting standards are still being built.

Overall, Australia offers strong financial support for businesses. The systems are stable and well-regulated. Just be ready for detailed tax rules and rising expectations around risk management when you register your business in Australia. .

Things To Consider When Expanding into Australia

Hiring foreign workers in Australia takes some planning, but the process is straightforward if you follow the rules. Most visas require employer sponsorship and proof that the role is in demand. The Australian government plays a crucial role in business registration, providing official services through the Australian Government Business Registration Service.

It’s important to note that legal requirements vary based on specific business activities, and obtaining the right licenses and permits is crucial for compliance.

Start by choosing the right visa:

• Short-stay visas work for brief projects
• Temporary work visas fit longer contracts
• Permanent visas suit long-term roles in high-demand areas

Hiring in regional areas can speed things up and give you access to more visa options.

Make sure the job is on the Skilled Occupation List. Workers also need to submit an Expression of Interest through SkillSelect and may need a skills assessment to confirm their qualifications.

Foreign hires have the same rights as Australian workers, including fair pay and safe conditions. Some visas come with limits on work type or hours, so it’s important to stay compliant. With a bit of prep and the right approach, bringing in global talent can be a smooth part of your expansion.

Cost of Living & Office Space

You don’t have to be in Sydney to build a strong team. Australia has skilled talent and solid infrastructure across the country. But costs vary depending on where you set up. Cities like Sydney and Melbourne offer access to major clients and a deep talent pool, but they’re expensive.

Office space and housing cost more, which can push up salaries and overhead. If you want to keep costs in check, secondary cities are a smart option. They’re more affordable and still offer access to qualified professionals.

Here’s how the main cities compare:

• Sydney: High costs, strong talent, and global business access.
• Melbourne: Similar prices. Known for education, tech, and creative industries.
• Brisbane: Lower costs, solid infrastructure, and a growing business scene.
• Perth: More affordable. Strong in mining, energy, and engineering.
• Adelaide: Cheapest of the five. Good infrastructure and a growing tech sector.

Australia’s workforce is well educated. Most people have university or TAFE qualifications. No matter the city, you’ll find skilled people. Your choice comes down to budget and how fast you want to grow.

Regulatory & Compliance Risks

If you’re expanding into Australia, expect tight rules and active enforcement. Businesses must meet strict standards around reporting, payroll, taxes, and governance. Directors and officers can be held personally liable if things go wrong. Understanding tax registrations, including obtaining a Tax File Number and Australian Business Number (ABN), is crucial as part of the broader business registration process.

Here’s what to watch for:

• ESG Reporting: Climate and sustainability reporting became mandatory in mid-2024. Directors must oversee clear, accurate disclosures. ASIC is cracking down on greenwashing.
• Insolvent Trading: Company failures are up. Directors can’t let businesses take on debt if insolvency is likely. You need strong financial oversight.
• Cybersecurity and Privacy: Privacy laws now carry massive fines, up to A$50 million. Directors must make sure systems are in place to manage risks and respond to breaches.
• AI and Emerging Tech: Boards must understand how AI is used in their business. Poor oversight could lead to legal and compliance issues, even if the director isn’t directly involved.

Regulators in Australia don’t look the other way. Make sure your team knows the rules and builds strong compliance processes from day one.

Talent Availability & Scaling Considerations

Growth starts with the right people in the right place, and Australia makes that possible. The country offers a skilled, English-speaking workforce, so hiring and scaling feel straightforward for global companies.

Most professionals have postsecondary education, and there’s strong talent across key sectors. An effective business plan is crucial to set clear objectives and secure funding, ensuring a smooth expansion process.

The economy is broad, with established industries in mining, tech, healthcare, and finance. Newer sectors are also gaining momentum:

• Clean energy, cybersecurity, and digital infrastructure are growing fast
• Government support and limited local competition create space for new players

Some fast-moving fields face talent shortages, especially in tech and renewables. Many companies address this by training locally or bringing in skilled workers from abroad.

With trade deals and targeted incentives, the government helps businesses scale, especially those aligned with national priorities.

If you’re looking to grow in a stable, forward-looking market, Australia offers the talent and support to make it happen. Just make sure you know what to expect when you register your business in Australia.

Protecting Your Intellectual Property

Protecting your intellectual property (IP) is vital for any business, as it helps prevent others from using your unique ideas, products, or services without permission. In Australia, you can protect your IP by registering trademarks, patents, and copyrights.

The IP Australia website allows you to search for existing trademarks and patents to ensure your business name, logo, or product does not infringe on existing IP rights.

Developing a comprehensive IP strategy is essential, which includes protecting your business name, logo, and any unique products or services you offer. Consulting with a professional advisor, such as an IP lawyer, can help ensure your IP is adequately protected, safeguarding your business’s unique assets.

Creating a Unique and Memorable Brand

Creating a unique and memorable brand is crucial for any business. Your brand should reflect the values, mission, and vision of your business, and it should be consistent across all marketing channels. Start by developing a comprehensive brand strategy that includes your business name, logo, tagline, and marketing messaging.

Ensure your brand is consistent across all social media platforms, your website, and marketing materials. Conduct market research to understand your target audience and develop a brand that resonates with them. A strong brand identity helps attract potential customers and sets your business apart from competitors.

Finding and Retaining Customers

Finding and retaining customers is essential for the success of any business. Develop a comprehensive marketing strategy that includes social media, advertising, and public relations to find new customers. Focus on providing excellent customer service to build a loyal customer base.

Use data and analytics to understand your customers’ behavior and preferences, and develop targeted marketing campaigns to reach them. Consider offering loyalty programs, discounts, and other incentives to retain existing customers and encourage repeat business. By building a strong brand and customer base, you can establish a successful business that generates revenue and grows over time.

How GEOS Simplifies Your Expansion into Australia

In 2023–24, over 436,000 new businesses launched in Australia, a 16.8% entry rate. That kind of momentum makes it clear: Australia is a great place to grow. GEOS helps you take the leap with less hassle, using a platform built to make expansion simple and stress-free.

End-to-End Entity Setup & Compliance Management

We handle the back-end work so you can focus on the big picture. We manage:

• Business incorporation, including tax registration and local filings
• Ongoing compliance for GST, payroll, and reporting
• Registered office address and nominee director appointments

It’s important to get professional advice to navigate legal requirements and set your business up for success. All of our services run through an all-in-one platform, built specifically to support global expansion. We make it easy to register your business in Australia.

AI-Powered Global Expansion Support

Geovanna is your digital assistant, designed to make expansion easier. She keeps track of compliance deadlines, handles documents and filings, and helps you stay up to date with local regulations. Using the right tools for managing business finances effectively is crucial, and Geovanna ensures you have the support you need. With Geovanna taking care of the admin, you’ve got more time to focus on growth.

Is Australia the Right Fit for Your Business?

With a GEOS Global Subsidiary Index Score of 81.6, Australia ranks as a strong option for companies looking to scale in a stable, high-growth region.

📩 Contact GEOS to get your tailored expansion strategy started.

This article does not constitute legal advice.