10 Steps to a Successful Business Setup in Australia

Australia’s thriving economy, political stability, and strong trade ties make it a magnet for global companies – but entering the market is just the beginning. Whether you choose to expand via a subsidiary, branch, or Employer of Record (EOR) partnership, the real challenge lies in setting up operations that are fast, compliant and sustainable.  

Yet the expansion process is rarely linear. Some companies are ready to launch with a full entity from day one. Others take a phased approach, testing the waters before diving in.  

In this article, we outline 10 essential steps in business setup that will help you build a strong, sustainable foundation for success in Australia. 

The 10 Steps

Step 1: Choose your market entry route 

There are multiple options for setting up your business in Australia. Some businesses opt for a local entity whereas some go for quick and hassle-free setup options via an EOR. Some start with an EOR and later scale up to a local entity. Depending upon your strategy, resource availability, timeline, and risk appetite, choose what’s right for your business using this quick guide. 

Step 2: Register your business entity 

To establish your local business entity, you must register with the Australian Securities and Investments Commission (ASIC). This process involves several key steps to ensure your company is legally compliant and ready to do business. 

• • Choosing a company name: Your company name must be unique and not already registered by another entity. If you choose not to register a specific name, the company can operate under its Australian Company Number (ACN). 

• • Deciding on a company structure: Most businesses opt for a proprietary limited company (Pty Ltd). This structure limits the liability of shareholders and is suitable for small to medium-sized enterprises. 

• • Providing a registered office and principal place of business: You must nominate physical addresses located in Australia (PO Boxes are not accepted). The registered office must be accessible during standard business hours. You can also opt for a virtual office address.  

• • Appointing company directors: A proprietary company must have at least one director who ordinarily resides in Australia. Public companies require a minimum of three directors, with at least two residing locally. A company secretary is optional for proprietary companies but mandatory for public ones. Learn more about appointing company directors. 

• • Registering the company with ASIC: ASIC will issue your business an ACN.  

• • Applying for tax identifiers: An Australian Business Number (ABN) as well as a Tax File Number (TFN) will be required for invoicing and taxation purposes. These are issued by Australian Taxation Office (ATO). Depending on your business activities, you may also need to register for Goods and Services Tax (GST), Pay As You Go (PAYG) Withholding and Fringe Benefits Tax (FBT). 

• • Opening a business bank account: Setting up a local Australian bank account is essential – even if your head office is overseas. Please note that most banks require at least one Australian resident director to visit in person to open the account. 

Step 3: Understand regulatory and licensing requirements 

Australia has a robust regulatory environment, and compliance is non-negotiable. Depending on your industry, you may need to secure specific licences, permits, or registrations before you can legally operate. Examples include:  

• • Hospitality businesses require food safety permits. 

• • Construction companies must register with the relevant building authority. 

• • Financial services providers must meet AFSL (Australian Financial Services Licence) requirements.  

Regulatory requirements can vary between states and territories, so it’s essential to check both national and state-level obligations. Tools like business.gov.au and state-specific portals can help you identify what applies to your business.   

Also consider sector-specific regulations such as environmental compliance, data privacy laws, or health and safety standards – especially if you’re in technology, healthcare, or manufacturing.  

Step 4: Hire employees in Australia 

With your financial infrastructure in place, it’s time to focus on building your team. Employee rights are a big deal in Australia – and that’s a good thing. But it also means the rules around employment are strict and there is not much wiggle room. If you are planning to hire locally, here is how you should proceed: 

• • Complying with the Fair Work Act 2009: If you’re going to hire employees, this is your rulebook. 

• • Identifying Modern Awards and National Employment Standards (NES): Based on your industry and job type, you need to determine which award applies to your employees – and follow it to the letter. 

• • Setting up superannuation: You need to ensure mandatory contribution to employee retirement funds which is currently 12% of an employee’s base salary. 

• • Establishing leave entitlements: You also need to manage annual, personal, parental, and long service leaves. Each comes with specific rules around accrual, usage, and payout.  

• • Configuring payroll: You need to have payroll process aligned with federal and state laws, including Single Touch Payroll (STP) compliance.  

• • Preparing employment contracts: When you hire someone, an employment contract act as a legally binding document. It outlines key details like parties involved, compensation, working hours etc for each employee.  

• • Establishing clear HR policies: When you work with people, having clear HR policies and systems in place is essential for compliance and employee wellbeing. While employment contracts define the legal relationship, clear HR policies guide daily operations, from onboarding and performance to conduct and conflict resolution. 

• • Hiring: If you plan to relocate existing overseas employees who are already familiar with your operations, consider using an On-Hire labour Agreement (OHLA) provider to facilitate their legal employment in Australia along with immigration. If you face local skill shortages or cannot find the right expertise locally in Australia, OHLA also enables you to hire qualified talent from anywhere in the world to work legally in Australia. Find out how you can access a global talent pool through OHLA.  

Step 5: Choosing workspace setup 

Many businesses entering Australia begin with remote teams, virtual offices or co-working space especially during early-stage operations. However, if your business needs a physical presence, there are several commercial space options available depending on your industry and operational needs: 

• • Serviced officers – ideal for flexible, short-term setups. 

• • Retail spaces – suitable for customer-facing businesses. 

• • Industrial sites – best for manufacturing or production. 

• • Warehouses/logistics hubs – for storage and distribution. 

Step 6: Set up accounting and reporting systems 

Australia has strict financial reporting standards, and getting your systems right from the start will help you stay compliant and avoid tax surprises.  

Here’s what to set up:  

• • Registering for GST if your annual turnover exceeds AUD 75,000 

• • Setting up quarterly BAS (Business Activity Statement) to report GST, PAYG withholding, and other tax obligations. 

• • Preparing annual financial statements, director declarations, employee income statements and lodging company tax returns with the ATO. 

• • Choosing accounting software that supports Australian standards. 

Step 7: Localise your marketing 

To build trust and connect with your Australian audience, your marketing needs to speak their language – literally and culturally.  

Here’s how to localise effectively:  

• • Adapt your website and content to use Australian English, local spelling, and relevant references.  

• • Showcase local credibility by highlighting case studies or testimonials from Australian clients.  

• • Use a .com.au domain to signal your local presence and boost search visibility.  

If you’re investing in digital marketing, ensure compliance with Australian privacy laws (like Privacy Act 1988) and anti-spam regulations (like the Spam Act 2003). This includes obtaining proper consent for email marketing and handling customer data responsibly.  

Step 8: Outreach and build partnerships 

Building strong local relationships is key to long-term success in Australia. Strategic partnerships can open doors, accelerate trust, and help you navigate the local business landscape.  

Here’s how to get started:  

• • Network through chambers of commerce, industry associations, and local events to uncover collaboration opportunities.  

• • Explore government support programs like Austrade and state-level grants designed to encourage international investment.  

• • Join LinkedIn local groups and attend industry meetups to strengthen your local footprint and stay connected to market trends.  

These connections not only help with visibility – they also provide valuable insights, referrals, and credibility in a new market.  

Step 9: Review and adjust 

Your first year in Australia will be a learning curve – and that’s perfectly normal. Regularly track your sales performance, customer feedback, and compliance obligations to identify what’s working and where adjustments are needed.  

Consider these actions:  

• • Conduct a local audit or compliance check within 6-12 months to ensure you’re meeting regulatory standards.  

• • Gather employee feedback to assess cultural fit, team dynamics, and operational efficiency.  

• • Refine your marketing, staffing, and service delivery based on insights from the local market.  

Staying agile and responsive will help you build a resilient, high-performing operation in Australia.  

Step 10: Stay compliant and grow  

Once you are operational, staying compliant will be an ongoing task. You will need to: 

• • Keep up with changes in employment law, tax regulations, and industry standards. 

• • Maintain accurate records for audits and reporting. 

• • Ensure directors and officers meet their legal obligations under Australian corporate law. 

Ensure your business meets compliance requirements in Australia—here’s how. 

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The Crux

Expanding into Australia isn’t just about ticking legal boxes. It’s about blending your global experience with local insights. With the right preparation, phased investment and strategic partnerships, you can confidently navigate Australia’s business landscape.  

The real key to success lies in adaptability i.e. being willing to adjust your approach as you learn more about the market. Businesses that listen to local customers, respect workplace culture, and stay proactive with compliance are the ones that build long-term growth in the country. The stronger the foundations you build now, the easier it becomes to scale in the future.  

Got questions about expanding your business to Australia? We are here to help.