How to Set Up an Entity in Australia

Setting up a legal entity in Australia can be very attractive for companies looking to expand into the Asia–Pacific region. Australia offers a stable economy, transparent regulation, and broad access to regional markets. For many foreign investors, establishing a local company provides clarity, legitimacy, and the ability to hire staff, invoice clients, and operate under Australian law.

The process of setting up a company in Australia is relatively straightforward, but still requires careful compliance with registration, naming, director requirements, and post-incorporation obligations. Main challenges include ensuring compliance with local regulatory requirements (especially if foreign investors are involved), meeting director residency rules, and maintaining ongoing reporting and tax obligations. The main benefits include limited liability protection, access to a reputable legal system, and credibility with clients, partners, and employees.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Australia?

In Australia, “opening an entity” generally means incorporating a company under the national company registry. Once registered, the company becomes a separate legal entity, with its own rights and obligations, able to enter into contracts, hire employees, and operate under Australian corporate law. The main option used by foreign investors is a proprietary limited company (Pty Ltd).

Entity overview in Australia

Below is a summary of the typical entity type used by foreign investors and general registration parameters under Australian law:

Step-by-step guide: How to open an entity in Australia

Step 1: Choose the right structure

Most foreign companies choose a proprietary limited company (Pty Ltd). This offers limited liability, flexibility, and is well-suited for small-to-medium operations. A public company is more complex and generally used for larger ventures, while a foreign company may register as a foreign branch with local agent representation if maintaining a headquarters elsewhere.

Step 2: Verify business name availability

Use the ASIC name search tool to check that your proposed company name is not already taken. Company names must end with “Pty Ltd” (or the applicable suffix for a public company) and comply with naming rules. If the name is acceptable, you can reserve or immediately use it during registration.

Step 3: Prepare incorporation documents

Required documents typically include:

• Proposed company name, type, and structure (proprietary or public)
• Details of directors and shareholders (including at least one director residing in Australia)
• Registered office address and principal place of business in Australia
• Share structure (number of shares, class) and shareholders’ consent
• Constitution or adoption of the “replaceable rules” under the law (if not using a bespoke constitution)

Step 4: Register with ASIC

Submit your application through the Business Registration Service (BRS), which feeds into ASIC’s national register. You’ll need to pay the registration fee at filing. After approval, ASIC issues an Australian Company Number (ACN) and a certificate of incorporation. Your company will then be listed on the public companies register.

Step 5: Register for tax and social security

Once incorporated, apply for an Australian Business Number (ABN) and a Tax File Number (TFN) through BRS or the tax authority. If your expected turnover exceeds $75,000 per year, register for GST. If hiring employees, register for PAYG withholding and employer superannuation obligations.

Step 6: Open a corporate bank account

After incorporation and tax registration, you can open a local corporate bank account. Banks generally require the certificate of incorporation, ACN, proof of directors and shareholders, and proof of registered office address. Having a local bank account is strongly recommended if you’ll conduct transactions in AUD.

Step 7: Set up payroll and employment compliance

If you plan to hire staff in Australia, you must set up payroll systems that comply with local employment law, withhold PAYG taxes, and make employer superannuation contributions (currently 12% of ordinary earnings). Ensure employment contracts meet Australian legal requirements and that you meet periodic reporting obligations.

Discover how Elemental Enzymes accelerated regulatory approvals and market entry with Deel.

Post-registration obligations

Once your Australian company is up and running, you must maintain compliance with several ongoing obligations:

• Tax and financial reporting: File annual corporate tax returns with the Australian Taxation Office (ATO), lodge GST returns if registered, and maintain accurate financial and accounting records under Australian accounting standards
• Corporate registers: Keep up-to-date records of directors, shareholders, and beneficial owners. Report any changes to ASIC promptly
• Compliance tracking: Maintain a compliance calendar to monitor deadlines — including annual ASIC company review fees, tax filings, payroll obligations, and corporate changes.
• Licences and renewals: Depending on your business activities and industry, you may need trade licences, professional permits, or other registrations under relevant Australian federal or state legislation
• Recordkeeping: Retain accounting, payroll, HR, and transaction records (often for a minimum of 5 years, depending on law and tax authority requirements).
• Employment law compliance: Ensure employment contracts, payroll, benefits, superannuation, workplace health and safety, and data protection rules are adhered to, including regular reporting and payments

Taxes and financial considerations

You are responsible for:

• Corporate income tax: Australia applies a 25% corporate tax rate for base rate entities (companies with turnover under $50 million and no more than 80% passive income) and 30% for all others. Tax is paid annually, with instalments required for many companies, depending on size and reporting obligations
• GST: 10% Goods and Services Tax applies when annual turnover exceeds $75,000; businesses must register and lodge periodic Business Activity Statements — monthly, quarterly, or annually
• Payroll / social contributions: Employers must contribute 12% of ordinary earnings for employees via the superannuation guarantee (as of 2025)
• Accounting standards: Australian companies are generally required to maintain financial records in accordance with Australian accounting standards; larger companies may need to prepare audited financial statements

Discover how Climate-KIC navigated complex restructuring with Deel.

Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Australia?
Typically, a few business days after the application is lodged with ASIC via the Business Registration Service. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
There is no statutory minimum capital requirement for a proprietary company in Australia.

Can foreign companies own 100% of an entity in Australia?
Yes. Foreign investors can own 100% of a Pty Ltd company. However, at least one director must ordinarily reside in Australia.

Do I need a local director or representative?
Yes. Australian law requires at least one resident director for a proprietary company.

How much does it cost to register an entity?
ASIC registration for a proprietary company currently costs $503–$611 (AUD). Additional setup costs may include legal, notary, and accounting fees, if using external advisors. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. Until your company is registered and you have an ABN/TFN and employer registrations in place, you should not employ staff under the company. However, you can use Deel’s Employer of Record (EOR) service to hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Australia?
Yes. Deel Entity Setup covers the full process from registration through tax onboarding, payroll setup, and compliance.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.