Australian Branch Setup

Australia is a good place to do business – stable legal system, clear regulation and free movement of capital. Getting set up properly is the part that takes local knowledge. We help overseas companies choose between a branch and a subsidiary, register it, and then keep the Australian arm compliant year after year: tax, payroll, bookkeeping and reporting to ASIC.

We work with clients online and over the phone, so you do not need to be in Sydney to work with us.

Branch or subsidiary

Which structure suits your plans, and what each means for tax, liability and reporting – in Australia and at home.

A resident director

If nobody in your team lives in Australia, our founder can act as the Australian-resident director – and we can be your local agent and registered office.

Registrations

ASIC registration, director IDs, and the ATO registrations the business needs before it trades.

Running the Australian arm

Bookkeeping, payroll, BAS, tax returns and the annual ASIC obligations, kept up to date.

Branch or subsidiary?

An overseas company can do business in Australia in two main ways: register itself here as a foreign company (a branch), or incorporate an Australian company that it owns (a subsidiary). The rules below are from ASIC, checked October 2026.

Branch (registered foreign company)Subsidiary (Australian company)
What it isThe overseas company itself, registered with ASIC to do business hereA separate Australian company owned by the overseas company
ASIC identifierAustralian Registered Body Number (ARBN)Australian Company Number (ACN)
Local presence requiredA local agent resident in Australia, and a registered office in Australia open during set hoursA proprietary company must have at least one director who normally lives in Australia
Reporting to ASICFinancial statements lodged at least once each calendar yearAnnual review and the reporting that applies to Australian companies
LiabilityThe overseas company is directly responsible for the Australian operationsThe Australian company is a separate legal entity

If the overseas company sets up a subsidiary and does not itself carry on business in Australia, it does not also have to register as a foreign company. Either way, every director needs a director ID – for a foreign company, directors must have one or have applied for one before it registers.

Which is better depends on what you are doing here, how long for, how profits will flow back home and how your home country taxes them. We look at the cost of compliance, the tax on both sides, asset protection and how the Australian arm will be financed, and recommend a structure. See also business structuring and our post on the company structure.

A director who lives in Australia

A subsidiary set up as a proprietary company needs at least one director who ordinarily resides in Australia. If none of your people are based here, that is often the first practical hurdle – and one we can solve. Our founder, Thomas Murmylo, acts as the Australian-resident director for the Australian operations of overseas companies, and can do the same for yours.

Directors have real legal duties under the Corporations Act, so this is not a name on a form. As your resident director we:

  • fill the requirement for at least one director who ordinarily resides in Australia
  • advise the board on Australian legal, tax and reporting requirements as they come up
  • run the Australian company's accounts, so that it stays compliant and the board has what it needs to make decisions

Local agent and registered office

A foreign company registered in Australia as a branch needs a local agent who lives in Australia, and every Australian company and registered foreign company needs a registered office here. We can act as your local agent and provide the registered office, alongside the accounts and compliance work.

Anti-money laundering checks

Since 1 July 2026, Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws apply to some of the services accountants provide – including acting as a director of a company on a client's behalf and providing a registered office or principal place of business address. These are regulated by AUSTRAC.

In practice, before we take on any of these roles we must verify who we are acting for: the company, its directors and its beneficial owners – the people who ultimately own or control it. Expect us to ask for identity and ownership documents at the start, and to update them from time to time. It is the law, and it protects the company as much as us. See AUSTRAC's guidance on professional services for the detail.

Registrations

Depending on the structure and what the business will do, setting up usually involves:

  • ASIC – registering the foreign company (with its certified documents and local agent) or incorporating the subsidiary
  • Director IDs for every director
  • ATO – tax file number, ABN, and GST registration if the business must or chooses to register
  • Payroll – PAYG withholding, super and, for NSW employers, workers compensation, once you start employing people here

We handle the registrations and tell you what else applies – licences, for example, depend on the industry. Our post on 10 essential points in setting up a business in Australia is a good overview, and business setup covers the Australian entities in more detail.

Ongoing compliance

Once you are trading, the Australian arm has the same obligations as any local business, plus some of its own:

  • bookkeeping and management reporting, in Xero or another platform
  • payroll, Single Touch Payroll and super for Australian staff
  • GST and BAS lodgements
  • the annual tax return, including cross-border questions such as transfer pricing and dealings with the parent company
  • ASIC obligations – keeping details up to date and, for a branch, lodging financial statements each year

Our founder, Thomas Murmylo, is a Chartered Tax Adviser who specialises in Australian and international taxation.

What it costs

Acting as your resident director, local agent or registered office has no fixed fee: it depends on the business, its risk profile and what our engagement covers, and we agree it with you up front.

Setting up an Australian company costs $1,500 including GST, which includes the government charges, GST registration and a consultation on running the entity – see our price list. Foreign company registration, structuring advice and ongoing compliance are charged at our hourly rates of $220 to $420 an hour plus GST, or a fixed periodic fee once the work settles into a regular cycle. We will give you a quote before we start.

Moving to Australia yourself as well? Your personal tax position changes too – see tax for travellers.

Questions people ask

Should we set up a branch or a subsidiary in Australia?

It depends on what you will do here, for how long, how profits will go back home and how your home country taxes them. A branch is the overseas company itself registered with ASIC; a subsidiary is a separate Australian company. We look at the tax, liability and compliance on both sides and recommend one.

Does an Australian company need a director who lives in Australia?

Yes. ASIC requires a proprietary company to have at least one director who normally lives in Australia. If none of your people are based here, our founder Thomas Murmylo can act as the Australian-resident director – he already does this for the Australian operations of overseas companies.

What does a foreign company need to register with ASIC?

An application with certified copies of its certificate of incorporation and constitution, and the appointment of a local agent who is resident in Australia. Directors must have, or have applied for, a director ID before the company registers. ASIC then issues an Australian Registered Body Number (ARBN).

Can you be our local agent and registered office?

Yes. We can act as the local agent for a registered foreign company and provide its registered office in Australia, as well as act as the Australian-resident director of a subsidiary.

Why do you need identity documents for our company?

Since 1 July 2026, acting as a director on a client's behalf and providing a registered office are covered by Australia's AML/CTF laws. Before we take on these roles we must verify the company, its directors and its beneficial owners.

What are the ongoing obligations of a registered foreign company?

Among other things, it must keep a registered office in Australia, have a local agent, display its name and ARBN correctly, and lodge financial statements with ASIC at least once each calendar year – on top of its Australian tax obligations.

Do we need to be in Sydney to work with you?

No. We work with overseas clients online and over the phone. You are welcome to visit us in Bondi Junction when you are here.

Talk to us about Australian Branch Setup

Tell us a little about your situation and one of our accountants will get back to you. There is no obligation and no cost to ask.

Prefer to talk? Call us on (02) 9386 0500

  • Monday – Friday 10 am – 6 pm
  • Saturday By appointment only

Already a client, or ready to meet? Book an appointment