Foreign Company Setup

Foreign investors who are willing to expand their business in Australia could choose to register a foreign company in Australia. For the scope of this article, it is assumed that the overseas entity is running under a corporate structure and looking to expand operations within Australia and need a corporate presence and hence in the need of a foreign company setup in Australia.

In Australia, The Australian Securities and Investments Commission (ASIC) is the regulatory authority for all businesses setup under a company or a corporate arrangement. ASIC has strict guidelines based on which companies are allowed to operate. Such businesses can seek a permission to register a foreign company in Australia by following ASIC’s guidelines to be able to officially function. These registered foreign companies in Australia could have similar rights and features as any other local company registered in Australia, however will have more onerous reporting guidelines to follow in comparison to locally owned Australian companies.

Below are certain requirements and considerations to be taken into account in order to start up and operate such a foreign company in Australia:

  • The Corporations Act 2001 requires every Australian Proprietary Limited Company to appoint a local agent and must have a registered office in Australia. (We can manage this aspect for you.)
  • An important aspect with foreign company setup is the appointment of local agent who would be liable for all acts and matters of the company and will also be the contact person in all matters pertaining to ASIC. A local agent can be a person or be a corporate entity and it is critical that this entity and person be covered for any liabilities that may arise.
  • In the process of registering a foreign company, certified copies of documents such as certificate of registration, constitution, memorandum of association and/or articles of association as applicable in place of its origin would be required to be provided along with the payment of applicable fee.
  • The process is time consuming and we do have experience dealing with such circumstances in the past and have successfully been able to register the foreign companies.
  • Similar to an Australian company that has tax obligations, a foreign company too has lodgment and disclosure requirements and these we shall be able toe explain to you once you have made up your mind to take this path. We can help with the lodgment of foreign company tax returns and preparation of financials as required.

If you are looking to register a similar business in Australia, we can put your apprehensions to rest. Feel free to contact us on 03 8609 1889 and we shall assist you with your enquiry and through this process.

Comments are closed.