Expand into Australia: Unlock the vibrant business opportunities down under.
Australia is an attractive destination for businesses due to its stable economy, skilled workforce, and strong trade relationships with key markets like China, the U.S., and the European Union. The country offers a business-friendly environment, a straightforward regulatory framework, and one of the world’s most transparent tax systems.
However, setting up a company in Australia comes with its own complexities, from understanding local regulations to ensuring compliance with employment and tax laws. An alternative, such as an Employer of Record (EOR), can simplify your market entry and reduce administrative burdens.
Continue reading to learn how to register a company in Australia and find out if an EOR might be a more efficient solution for you. But first, let’s explore the business benefits of expansion here.
The business benefits of registering your company in Australia
Australia offers several advantages for foreign businesses:
- Strong economy: A resilient economy with low inflation and a high standard of living.
- Ease of doing business: Ranked among the top countries for business-friendly regulations.
- Skilled workforce: The country boasts a highly educated workforce with strong English proficiency
- Strategic trade location: Access to the Asia-Pacific market, one of the fastest-growing global economies.
- Robust legal system: Transparent corporate laws that protect investors and businesses.
- Innovation and R&D support: Government grants and incentives for startups and research-driven businesses.
However, setting up an independent entity and adhering to the local labor laws and tax systems can be complex. Partnering with an Employer of Record (EOR) can simplify things, freeing you of many responsibilities and expenses—and making expansion here even more favorable.
What is the difference between standard company registration and expanding through an EOR?
You have two options for operating in Australia. Either register a company or use an Employer of Record (EOR).
Below is a comparison:
Aspect | Company registration | Employer of Record (EOR) |
Purpose | Establish a legal entity for long-term operations or trade. | Begin hiring and operations without registering. Useful for testing the market or managing teams remotely. |
Control | Full control (and liability) of operations | Limited control (EOR handles HR/admin responsibilities) |
Cost | High initial investment (registration, legal fees) | Predictable, bundled service fee |
Compliance | Full responsibility for legal and tax compliance | EOR ensures compliance with Australian laws |
Setup time | Several weeks to months | A few weeks |
Scalability | Complex and time-consuming | Quick and flexible workforce adjustments |
While direct registration offers complete control, an EOR simplifies processes for businesses that want a low-risk, cost-effective market entry. Let’s explore these benefits in a little more detail.
How an EOR simplifies Australia company registration
Partnering with an EOR can simplify your Australian operations. Here’s how:
- Quick market entry: Skip the lengthy registration process and begin operations within weeks.
- Regulatory compliance: EORs handle employment laws, payroll taxes, and contract regulations.
- Cost efficiency: Avoid expenses like office setup, share capital requirements, and local documentation.
- Streamlined payroll management: Manage salaries, benefits, and tax filings efficiently, compliantly, and effectively.
- Focus on business growth: Offload administrative burdens to the EOR while you focus on your core business.
Would an EOR suit your business needs? Understanding the registration process can help you make an informed decision. In the next section, we explore this process.
A step-by-step guide to registering a company in Australia
Here’s a step-by-step, country-specific guide to registering a company in Australia tailored to your chosen business structure.
Step 1: Choose the right business structure
Selecting the correct legal structure is crucial. The main options include:
- Sole trader: A simple structure where an individual operates in their name and has full liability.
- Partnership: When two or more people or entities run a business together, sharing profits and responsibilities.
- Company (Pty Ltd): A private limited company; a separate legal entity registered with the Australian Securities and Investments Commission (ASIC), offering limited liability to its shareholders.
- Trust: A legal entity managing assets for its beneficiaries, often used for investment or estate planning.
Each structure has distinct legal and tax implications. You many need to consult legal or financial professionals to help you decide.
Step 2: Select and reserve a company name
Ensure that you have a unique property name. Check the availability via the Australian Securities and Investments Commission (ASIC) and register it to ensure exclusivity. To register your company, lodge Form 201 through ASIC.
Step 3: Register for an Australian Business Number (ABN)
You require an ABN for tax and business transactions. Apply through the Australian Business Register (ABR).
Step 4: Obtain an Australian Company Number (ACN)
Every company must have an ACN issued upon registration with ASIC.
Step 5: Appoint directors and shareholders
A company must have at least one director residing in Australia. Shareholders can be individuals or corporate entities. While not mandatory, a company can also appoint secretaries. All appointed individuals must provide written consent to their roles, and you should document this with company records.
If you wish to run operations in Australia remotely, without Australian residency, you can do so via an EOR. The EOR will legally hire employees on your behalf and manage administrative tasks like payroll, benefits management, etc. in compliance with Australian laws.
Step 6: Register for Goods and Services Tax (GST)
Businesses with annual turnover exceeding AUD 75,000 must register for GST with the Australian Taxation Office (ATO).
Step 7: Establish a Registered Office and Principal Place of Business
Your company must have a registered office address and a principal place of business in Australia. Official communications are sent to the registered office while the principal place of business is where daily operations occur.
You may also need to set up an Australian bank account for business transactions and to manage your tax obligations.
Step 8: Comply with ongoing reporting and taxation
After registration, companies must continue complying with statutory requirements:
- Update ASIC on key changes: Notify ASIC of any changes to the company’s registered office, principal place of business, directors, or business name within 28 days to avoid late fees.
- Maintain financial records: Maintain accurate financial records explaining transactions and the company’s financial position.
- Pay annual review fees: As of July 1, 2024, the annual review fee for a proprietary company is AUD 321.
In addition to the annual fees, you will incur expenses at various steps of the registration process, including registration costs and share capital. Understanding these expenses is vital for finalizing your expansion plans.
The real cost of registering a business in Australia
Below is an estimated breakdown of how much it will cost you to register a legal entity in Australia
- Company registration fee: The fees for registering a business name are $44 for one year or AUD 102 for three years. As of July 1, 2024, the registration fee for a proprietary company with share capital is AUD 597.
- Annual company review fee: AUD 321 (for a Pty Ltd company)
- Legal and accounting fees: These fees can vary widely based on the complexity of your business structure and specific requirements, typically ranging from AUD 1,000 to AUD 5,000.
- GST registration: Registering for the Goods and Services Tax (GST) is free. Businesses with an annual turnover of $75,000 or more are required to register.
- Corporate tax rate: For 2023-24, corporate tax rates were 25–30%, depending on turnover.
If you opt for an EOR, you avoid many registration costs and reduce administrative expenses.
Cost savings with an EOR
An EOR also handles various employment-related responsibilities, potentially reducing administrative costs and legal fees. They consolidate many expenses into a single predictable fee.
Cost Category | Company registration (AUD) | EOR with Multiplier (AUD) |
Setup fees | $1,000–$5,000 | $0 (covered by EOR) |
Legal documentation | $500–$2,000 | Included |
Payroll & compliance | $300–$800/month | Included |
Ongoing maintenance | $1,000+/year | Included |
Time investment | 3–6 months | 2–4 weeks |
Note: The above costs are approximations. Your savings will depend on individual business circumstances and should be evaluated accordingly.
Talk to our team today to learn how Multiplier can help you save costs, reduce risks, and build efficiency while you expand operations in Australia.
Make your Australian expansion stress-free with Multiplier
Expanding into Australia is easier with the right support. Multiplier ensures a smooth, compliant, and cost-efficient market entry, handling complexities so you can grow your business confidently.
Why choose Multiplier in Australia?
- Effortless hiring: Easily onboard Australian talent with legally compliant contracts.
- Seamless payroll management:
- We ensure accurate salary payments with automated payroll processing.
- Ensure full compliance with Australian Taxation Office (ATO) obligations including state-based obligations.
- Automate the calculation and payment of mandatory employer contributions.
- Visa & work permits: We assist you in securing work rights and immigration compliance for international hires.
- Regulatory compliance & localized HR management:
- We align your time-off management with Australia’s minimum leave entitlements.
- Ensure compliance with Modern Awards & National Employment Standards (NES).
- Help you tailor competitive packages to attract top talent and manage employee benefits administration, including health insurance and pension schemes.
- Employee termination & risk mitigation
- We guide you on redundancy, notice periods, and unfair dismissal laws under the Fair Work Commission.
- Help you ensure legally compliant offboarding.
With an EOR like Multiplier, you can hire employees and expand into the Australian market without establishing a local entity— reducing costs and minimizing risks.
Book a demo today and learn how Multiplier helps businesses like yours expand into Australia, effortlessly.
