Market Insights
Access market specific business content, the most recent information, and insights for conducting business in Australia.
Find information using market resources below:
-> Doing Business in Australia
Reference: Data provided by Grantthornton
Can a foreigner register a company in Australia?
Can a foreigner register a company in Australia?
Yes, a foreigner can register a company in Australia, but they need to meet certain requirements, including having an Australian resident director and obtaining a director identification number (director ID). They also need to secure the appropriate Australian visa to legally run a business in the country.
Steps for a Foreigner to Register a Company
Obtain a Visa:
You must apply for and be granted an Australian visa that allows you to run a business in Australia.
Get a Director Identification Number (Director ID):
If you plan to be a director, you'll need to apply for a director ID before registering your company with the Australian Securities and Investments Commission (ASIC).
Appoint an Australian Resident Director:
A private Australian company must have at least one director who ordinarily resides in Australia.
Register Your Business Name and Get an ABN:
You'll need an Australian Registered Business Name (ARBN) and an Australian Business Number (ABN) to register your company.
Register Your Company with ASIC:
You can apply to register your company with ASIC, which involves lodging specific documents, including a certified copy of the entity's current certificate of incorporation or registration and its constitution.
Key Considerations for Foreigners
Australian Resident Director:
You cannot be the sole director of an Australian company; you will need at least one Australian resident director.
Australian Business and Tax Obligations:
Understand the different taxes and licences your business may need to operate in Australia.
Business Structure:
Decide on the most suitable business structure for your needs, such as a proprietary company (Pty Ltd), which is a common option for private businesses.
Other Facts:
It is certainly possible for non-residents to establish a business in Australia, but not on their own.
A foreign individual or business may own stock in an Australian corporation, but they are not permitted to serve as its sole director.
According to Australian law, every Australian corporation must have at least one director who resides in Australia. Additionally, in order for an Australian public company to register with ASIC, two of its directors must be residents.
According to Section 1.5.5 5.1 of the Corporations Act of 2001:
A director can only be a person who is at least eighteen years old. A company's only director must typically be an Australian citizen. At least one of the directors must typically reside in Australia if the company has more than one.
Note: A person who resides in Australia is considered an Australian resident.
Costs of Investments Required to Enter the Australian Market
Costs of Investments Required to Enter the Australian Market
Understanding the required investment costs is essential for success because expanding internationally is a big undertaking.
Note: Depending on your company's industry, scale, entry strategy, and other variables, actual expenses will vary significantly.
1. Market Research, Site Visits, and Testing the Market
It's crucial to start by comprehending Australian market trends, consumer preferences, and the competitors. Work with regional consultants or research companies, and think about going to Australia to get first-hand knowledge. Assessing consumer wants through market research might help you refine your approach.
Estimated Cost:
10,000 – 50,000 AUD
Key Activities:
Acquiring research reports and attending local visits or trade shows
Conducting surveys and interviews to understand customer needs and preferences
Analysing competitors to identify unique value propositions and competitive advantages
Researching local laws and regulations to ensure compliance
Performing test sales and marketing activities
2. Business Registration, Legal, and Financial Setup
Sustainable expansion requires establishing a financial and legal framework that complies with Australian laws. By consulting experts, you may create a solid basis for operations in the long run.
Estimated Cost:
15,000 – 80,000 AUD
Key Activities:
Company registration and legal filing fees
Opening business accounts and setting up financial management systems
Managing taxes and foreign exchange risks
Establishing governance and contract guidelines that meet local standards
3. IT Infrastructure and Staffing
You'll need a local team and a strong IT infrastructure to manage operations effectively. To guarantee seamless operation, carefully evaluate your manpower and IT requirements.
Estimated Cost:
IT Infrastructure: 5,000 – 100,000 AUD
Employee Costs: 50,000 – 500,000 AUD per full-time employee per year
Key Activities:
Setting up internal IT systems, including internet and software
Installing management and back-office software solutions
Covering salaries, benefits, training, and administrative costs for employees
4. Sales, Marketing, and Building Local Partnerships
Building relationships with local partners and using efficient sales and marketing techniques are essential to establishing a clientele in a new area. Try to build a strong brand awareness and adjust your strategy to appeal to the Australian market.
Estimated Cost:
20,000 – 150,000 AUD
Key Activities:
Developing sales and marketing strategies
Covering sales expenses and advertising costs
Investing in digital marketing
Brand development and design
Costs related to selecting and building partnerships with local entities
5. Real Estate, Equipment, and Supply Chain Management
Operational success depends on choosing the right locations for offices or retail spaces, making the required equipment investments, and creating a productive supply chain. Depending on your company's requirements, prepare thoroughly.
Estimated Cost:
Real Estate & Equipment: Initial costs range from 30,000 – 150,000 AUD , with monthly costs from 2,000 – 20,000 AUD (month)
Logistics & Warehousing: 10,000 – 100,000 AUD
Key Activities:
Securing real estate, interior setup, and utilities (water, electricity, gas)
Acquiring office and store equipment, inventory management tools
Covering logistics, warehousing, and transportation expenses
Australia Top Advantages as the Best Destination for Exporters
Australia Top Advantages as the Best Destination for Exporters
The Australian market stands out as a very alluring location with lots of potential. owing to its strong economy, varied customer base, and advantageous trade regulations.
1. Prosperous and Stable Economy
Australia's economy is renowned for its steady expansion and stability. Apart from 2020 during the coronavirus shock, its GDP has been expanding favourably for over 30 years. Despite its reputation for having abundant natural resources, over 70% of Australia's GDP comes from the tertiary services industry. It is among the safest and most stable nations in the world, offering a dependable setting for international investment and company growth.
2. An expanding populace and a bright future market
The population of Australia is expected to keep increasing as a result of both natural growth and government immigration policies. The population was anticipated to be over 26.6 million as of June 2023, and it is projected to reach about 40 million in 50 years.
3. An English-speaking and multicultural community
Australians are multicultural; almost one in three of them were born outside of the country. Because of this, it has a wide range of customers and is generally receptive to foreign goods. It is also a good market for pilot testing and new business creation among English-speaking nations due to its size and makeup. Additionally, the multicultural Australian society places a high value on innovative and high-quality products.
4. Strong Bilateral Trade Relations
The Free Trade Agreement and other agreements have supported the long-standing economic connection between Asia and Australia, which makes it easier for products to enter new markets and reduce tariffs.
5. Cutting-edge digital infrastructure
With a cashless society, digital technology in public spaces, and the digitalisation of federal government services, Australia is more technologically sophisticated than other countries. Australia is a perfect market for e-commerce and digital marketing methods because of its highly developed digital infrastructure and high internet penetration rates.
6. Assistance for start-ups and SMEs
Australia makes it simpler for international companies to start and expand operations by providing a range of incentives and assistance programs. Australia's start-up ecosystem has gained more international exposure since the National Innovation and Science Agenda was introduced in December 2015. It offers a variety of support programs for start-ups and SMEs, including global businesses.
7. Increasing awareness of sustainability
Environmentally friendly items and sustainability are becoming more and more popular in the Australian market. People are willing to pay more for high-quality, organic products, and the government has stated ambitions to achieve nearly zero greenhouse gas (GHG) emissions by 2050.
8. Strategic location that connects the Asia-Pacific region to Europe and North America
Australia is ideally situated to act as a bridge between North America, Europe, and the Asia-Pacific area. It serves as a platform for operations for North American and European companies looking to navigate the Asia-Pacific markets and boasts a number of trade commitments. Furthermore, Australia is a perfect place for companies thinking about expanding into English-speaking regions to conduct pilot studies due to its multicultural population and varied market size. Leveraging Australia's vast network and well-established trade ties to expand your company's reach into the Asia-Pacific region offers unmatched strategic advantages.
International Businesses' Top 5 Consumer Behaviour Insights for Australia Market
International Businesses' Top 5 Consumer Behaviour Insights for Australia Market
For international exporters hoping to break into this dynamic market, understanding these nuances might make all the difference.
1. High regard for sustainability
Consumers in Australia are becoming more and more interested in sustainable and eco-friendly products. Global exporters should prioritise sustainability and green credentials in the creation and promotion of their products. Moreover, ethically made goods are also highly preferred by Australians. Your brand's attractiveness can be greatly increased by being open and honest about your workforce and production methods.
2. Prioritising Quality Over Quantity
High-quality, handcrafted goods are preferred by Australian consumers over mass-produced ones. Australian consumers are likely to be drawn to foreign exporters who are renowned for their painstaking attention to quality and detail. Australian customers are accustomed to purchasing online due to the country's high internet penetration and smartphone usage. Make sure your digital platforms are set up to provide a smooth and interesting user experience.
3. Health-Conscious Decision Making
Australians are becoming more and more interested in health and wellness items. There will be a market for foreign exporters who provide natural, organic, or healthful solutions, particularly in the food and personal care sectors.
4. Adherence to Companies That Give Back
Brands that support social causes or the local community enjoy the loyalty of Australian consumers. Putting your charitable endeavours or contributions on display can improve the perception of your brand. Showcase your products and interact with your customers by using social media sites like Facebook and Instagram.
5. Receptivity to Foreign Goods
As long as foreign goods satisfy local norms and preferences, Australians are accepting and open to them. Due to its multicultural society, Australia is generally open to new and distinctive items and has a high degree of interest in and understanding of various cultures. Foreign exporters will succeed if they can adjust and satisfy Australian tastes without sacrificing the quality of their goods.
