How to start a business in Australia

Australia is a super popular place for UK citizens to live, work, study, travel and retire - but what about starting a small business in Australia? If you’re a UK entrepreneur, Australia’s close relationship with the UK, and its status as a Commonwealth country - as well as the huge number of business opportunities - can be an attractive proposition.

This guide walks through how you can start a business in Australia as a UK citizen. We’ll also touch on Wise Business as the ideal solution for international businesses which offers ways to hold and exchange AUD and GBP with low fees and the mid-market exchange rate¹, and Australian account details for receiving payments with no extra charge.

How to start a business in Australia

No matter what type of business you’re hoping to establish in Australia, you’ll need to start by getting a visa. This is the biggest hurdle of the entire process, but there are a couple of options available to you as a non-resident.

Business Innovation and Investment Visa

The business innovation and investment visa - entrepreneur stream² - would allow you and your family to enter Australia for up to 5 years, with the option to move to a permanent visa if you meet certain requirements. The visa allows you to start your own business, in most sectors - although there are a few prohibited options, such as buying an existing franchise.

The steps you need to take to apply for this visa include:

1. Submit an expression of interest in the visa
2. Get nominated by a state or territory, and be invited to apply
3. Gather the required documents which include ID, and business information, proof of your English language skills and a police certificate showing you’re of good character
4. Make your application and pay the required fee
5. Await the outcome of your application - once a decision has been made you’ll be notified

Business Talent Visa

Another option is the business talent visa class³ which has 2 streams based on either having a history of successfully running companies or significant local funding in Australia. In both cases, you’re required to have a lot of money behind you to invest - but the visa is permanent, making this an attractive option if available to you.

To apply under the significant business history stream you’ll usually need:

• a net wealth of at least 1.5 million AUD
• an annual business turnover of at least 3 million AUD for at least 2 of the past 4 years
• a total net assets of at least 400,000 AUD in one or more qualifying businesses for at least 2 of the past 4 years

Under the venture capital stream you need to have at least 1 million AUD in funding from a local Australian venture capital company. In both cases you still need to be invited to apply as in the entrepreneur visa type - so do read all the details carefully before you decide which visa option will work best for you.

Choosing a business structure

Once your visa is taken care of, you can choose from any of the four most common business structures in Australia: sole trader, company, partnership, or trust⁴. Before deciding what structure is best, you may want to seek advice from a business consultant, lawyer, or accountant.

Once you know what type of business entity you need you can follow the step by step process to start a business in Australia⁵ from the UK, including getting an Australian business registration number⁶. Here are a couple of the most important steps you need to take:

Becoming a legal entity

After you’ve chosen your business structure, you’ll need to register for an Australian Business Number (ABN)⁷.

With an ABN in place, you’ll be able to:

• Confirm your business identity for the purpose of ordering and invoicing
• Avoid ‘Pay As You Go’ tax on payments received
• Claim Goods and Services Tax credits
• Purchase an Australian domain name

Registering your Business in Australia

You’ve got a couple of different options when it comes to registering your Australian business:

1. Contract a private service provider (PSP) to manage your application.

A PSP will handle the entire registration process for your company for a fee. Many PSPs in Australia use software with direct access to ASIC’s systems which increases the likelihood that your application is processed swiftly with minimal intervention. It’s best to conduct your own preliminary research before choosing a firm.

2. Apply directly with the ASIC

You can also register your company directly by filling out Form 201- Application for Registration as an Australian Company⁸ and sending it to the ASIC. The form must be sent with the required fees (paid by check or money order) in order to be processed.

Once your application is processed, the ASIC will:

• Provide you with an ACN (Australian Company Number) which then allows you to apply for an ABN (Australian Business Number) if necessary
• Send you a certificate of registration
• Give you a corporate key⁹ for managing your company’s online account.

To learn more about the process, you can use ASIC’s checklist for registering a company to ensure you’ve taken all the correct steps for completing your registration.

Take your business to new places with Wise Business

• Get the international business account with no monthly subscription
• Hold 40+ currencies, send payments to 160+ countries, and get local details for 9+ currencies including GBP, EUR, USD and AUD.
• Enjoy low-cost currency exchange using the mid-market exchange rate and transparent fees
• Use batch payments to pay up to 1,000 recipients at a time in multiple currencies with one spreadsheet.
• Set up multi-user access. Manage user permissions and choose from 5 roles to control what your team members can view, access, and manage
• Order business debit expense cards for you and your team. Get up to three digital cards per team member, and set spending limits according to your business needs
• Integrate your accounting software to connect with Xero, QuickBooks, FreeAgent and more.

Here’s how to register a Wise Business account in just a few simple steps:

1. Download the Wise app or head to the Wise desktop site
2. Tap Register and follow the prompts to apply for a business account
3. Add your personal and contact information
4. Upload the documents needed which are detailed online and in this Wise Business account requirements guide
5. Pay the one time fee to register your account and get a linked payment card if you need one
6. Once your account is verified you can start transacting - your account will be live in the Wise app, your physical card will be posted to you, and you can get a digital card right away for mobile spending

Discover Wise for business

Australia presents an enormous opportunity for many different business types, as well as a wonderful place to live. Use this guide to start your planning - and remember to take a look at Wise Business as a good way to manage your money across both GBP and AUD, with low fees and great exchange rates.

Sources used in the article:

1. Pricing/fees: Please seeTerms of Use for your region or visit WiseFees & Pricing for the most up to date pricing and fee information
2. Business innovation and investment visa - entrepreneur
3. Business talent visa (Permanent)
4. Business structures in Australia
5. ASIC - steps to register a company
6. Australian business registration service
7. Apply for an ABN
8. Form 201- Application for Registration as an Australian Company
9. ASIC - corporate key
   Sources last checked on 01-02-2024