Starting a business in Australia: A guide for Indian residents with requirements, fees, and opening a business account

Australia has been an attractive destination for Indians- whether for study, holiday or for business. If you are an Indian entrepreneur looking to start a business in Australia, you can find a business-friendly environment but there are requirements to be met. Read on to learn more about how to register a company in Australia as an Indian, what to expect and what visa programs exist to help make the transition a smooth one.

Can you register a company in Australia from India?

Yes. You can register a company in Australia from India. However, non-citizens require a specific work visa to start and run a business in Australia. Check out the section at the end of the article about required visas.

Local and foreign entrepreneurs must meet specific conditions to start and register a company in Australia. The Australian government has made it easy to register a business and taxes through the Business Registration Services (BRS) website.¹

Indian companies who don’t want to open a separate legal entity in Australia can explore opening a branch office. The branch office is opened in Australia, but the Indian parent company is considered responsible or liable for the branch. Registration with the ASIC is required and the branch is assigned an Australian Registered Body Number (ARBN).

The Australian government’s business website also has a handy tool to help you decide the type of business structure and tax registration you should apply for.

Different types of companies in Australia

There are many different types of business structures in Australia, but here are a few of the most common:²

• Sole trader: a sole trader is one of the simplest business structures where there is typically one business owner and they take full legal responsibility for all aspects of the business. A sole trader can use their individual tax file number (TFN) to lodge tax returns.
• Partnerships: a partnership is between two or more people who decide how to split up the financial and legal aspects of the business. The partner’s liability can be limited to their contribution to the business.
• Companies: a company is a separate legal entity from you as the business owner. It is a more complex business to set up and can be more expensive, but it also protects you from the company’s debts and obligations. A company allows there to be shareholders and directors have to have a director’s ID. Companies must submit an annual return to the Australian Tax Office and register for the Goods and Service Tax (GST) for turnover that is over $75,000 AUD.

Other types of business structures can be established, like a trust, cooperative or joint venture. Take a look at the Australian government's business for the different types of structures and find the one that fits your business best now and for your future goals.

Requirements to start an Australian company from India

Here are the requirements to start a company in Australia from India.^{3 4}

1. Choose a business name - The first step to starting a company in Australia is to choose a business name. The business name can not be identical to any other registered business name in Australia, even if it is unique in India. You can use online tools to check whether a business name is registered in Australia.
2. Decide on the company operations - Before registering your company, you must decide your company’s business plan, structure and articles of association, if necessary. The company structure will dictate how you set up your finances and taxes for the business. You can also start the process of establishing a business address in Australia.
3. Appoint officers for the company - Depending on your company’s articles of association, you must decide your officeholders. Public companies require directors and secretaries, while some companies might need to appoint a secretary. To register the company, you will need to provide the names, addresses, dates, and places of birth of the officeholders. Specific business structures may have rules like at least one director of a company must reside in Australia. Anyone who is holding a role in the business should understand their responsibilities, which can include updating the company’s details, maintaining company records, and paying the annual review fees as required.
4. Register the company - Once you have all the details, you must register the company using the Australian Government’s Business Registration Service (BRS). After a successful registration, you will be provided an Australian Business Number (ABN). The ABN will help clients and the Australia Tax Office identify your business. Depending on the nature of your company, you may need to also register with the Australian Securities and Investment Commission (ASIC). There may be third-party private service providers (PSPs) who can help you through the registration process.
5. Steps after incorporation - Once the business is registered you will need to display the name at the location you are operating the business and keep the company details up to date. You can then begin the process to hire staff, get customers and move forward with growing your business.

What does it cost to run an Australian company

Running a company in Australia will be a mix of fixed and variable costs. Here is a breakdown of common costs that a new business can expect and plan for:⁵

• Employee salaries: Salaries can be one of the largest costs for a business, and the amounts can differ depending on skill, location and role. Ensure you are paying the minimum wage in Australia which is $23.23 per hour.
• Office maintenance: Setting up an office, which includes finding a space and equipping it with the items you need, can be a substantial expense. Remote workers may substitute office rental costs for the costs of a coworking membership, or setting up an office at home.
• Insurance and taxes: Identify insurance policies you will need for you, your employees and your office space. The same goes for taxes, and make sure you are complying with all local, state and national regulations.
• Professional services: Local professionals like lawyers and tax accountants can help keep your business compliant with laws, even if you are not in the country.
• Marketing and business development: Marketing and business development are additional expenses that will help you grow your business. Many new businesses contract marketing work to freelancers to save on overhead.

Each business is different so your business may have fewer or more expenses to consider. Manage your business expenses so that you can build revenue and profit.

Starting costs for setting up the company

Starting a company will have costs that are different than when your company is up and running. For instance, the cost of a business name registration is:⁶

• $42 for 1 year
• $98 for 3 years

The Australian government’s business website has a handy start up costs worksheetto help organize the business expenses at the beginning. No matter the structure of your business, ensure to keep your receipts for any business expenses.

Fees for compliance, annual filings

Compliance and annual filings are required for registered companies in Australia and come with paying the appropriate fees. You can pay the fees in advance, or annually. Here is the fee structure according to ASIC:⁷

Failure to pay the annual review fees on time comes with a late payment fee.

• Up to one month late - $93
• More than one month - $387

Taxes and Government Fees

Australia has unique taxation rules and meeting your tax obligations for your business is critically important. All registered companies in Australia are subject to a 30% federal tax rate on taxable income. The exception is for small or medium businesses which have a lower federal tax rate of 25%.⁸

There are also unique taxes depending on the size and nature of your business. You can learn more about the different types of business taxes through the government website.

Keeping diligent track of your business revenue and expenses is key to navigating the tax system. The Australian government has a record-keeping evaluation tool that can help you decide which records to maintain for your business.⁹

Starting a business account for an Australian company

Opening a business bank account for your company in Australia depends on your type of business. A sole trader is not required to open a separate account, while a partnership or company is. Having a separate bank account for your business in any case is a good idea- you can make payments locally, receive payments and apply for financing like a business loan through a bank.

You may need documents with the following information to open up a business bank account in Australia:¹⁰

• A registered business name.
• A primary business address.
• Australian Business Number (ABN)
• The type of industry or business you are in.
• Identification for all owners and partners in the business.

Want to know more? Read our full guide to opening a business account in Australia.

Challenges in opening and managing accounts from India
While in the age of online banking, it has become easier to manage an account or business from afar, it doesn’t mean there aren’t hurdles. Banks can charge large fees for transferring money from Australia to abroad and exchange rates can fluctuate. It can also be difficult to track transactions if you have Indian and Australian accounts to operate your business.

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Moving to Australia from India

If you want to move to Australia from India to start or manage a business, you will need the appropriate business visa. Business innovation visas are different from employment visas which generally require sponsorship from an employer in the country.

Business innovation visas on the other hand do need sponsorship and nomination from a state or territory government agency or Austrade and you have to be invited to apply. ¹¹

Australia offers a few different types of business innovation visas for Indians:

• Business Innovation and Investment (Permanent) Visa - Subclass 888 - This visa allows entrepreneurs, investors, and business owners to continue their business in Australia on a permanent basis.
• Business Innovation and Investment (Provisional) Visa - Subclass 188 - This visa lets entrepreneurs who are running a new or existing business to do so in Australia for up to five years.
• Business Owner Visa - Subclass 890 - If you have been in Australia for at least 12 months on a valid visa within the past two years, and have owned and operated a business in the country, you can apply for a business owner visa which lets you stay in the country indefinitely.
• Investor Visa - Subclass 891 - An investor visa requires a designated investment of $1.5 million over the course of four years.

There are additional visas that qualifying applicants may apply for. Check out the Australian immigration website for more information.