Doing Business in Australia Without Setting Up a Company

Insights · By Chen ChunJie · Updated 17 October 2026
You can sell to Australian customers, work with Australian contractors and even employ staff in Australia without first incorporating an Australian company. What you cannot do is carry on business in Australia indefinitely without registering with ASIC, or ignore Australian tax and employment rules. This guide sets out the options, from lightest to fullest, and when each one stops being enough.
Last reviewed in October 2026 against ATO, ASIC and Fair Work sources. General information, not legal or tax advice.
Staircase chart of ways to operate in Australia, from selling from overseas and using contractors to an employer of record, a registered foreign company and a subsidiary

Option 1: Sell from overseas

Many companies start by selling to Australian customers from their home country. If your sales connected with Australia reach A$75,000 a year, you generally need to register for GST. Offshore sellers of digital products, imported services and low-value goods can use simplified GST registration without an ABN. ATO
A non-resident can also apply for an ABN if it carries on an enterprise connected with Australia. Without an ABN on your invoices, Australian business customers may have to withhold tax from payments to you. ATO

Option 2: Work with contractors

Contractors suit defined projects done by people who run their own business. They are not a way to avoid employment: since August 2024 the Fair Work Act looks at the real relationship, and sham contracting carries penalties. Contractors paid mainly for their labour can also be owed super. ATO
If you need help structuring compliant contractor work, see on-demand talent in Australia.

Option 3: Employ staff through an employer of record

When you need people on the ground under your direction, an employer of record employs them through its own Australian entity. You do not need an Australian company, and the EOR handles the contract, payroll, PAYG tax, super, workers’ compensation and labour hire licensing. Our Australia EOR cost guide shows what it costs.
Know the limit: an EOR employs your people; it does not register your business in Australia. If your staff regularly negotiate or sign contracts for you, your company may have a permanent establishment for tax purposes. Take advice before giving local staff that authority. ATO

Option 4: Register as a foreign company

A foreign company that carries on business in Australia must register with ASIC before it starts. It receives an Australian Registered Body Number (ARBN), must appoint a local agent and keep a registered office in Australia, and lodges financial reports. Having a place of business in Australia is one clear sign of carrying on business; holding a bank account or an isolated transaction alone is not. ASIC

Option 5: Set up an Australian subsidiary

A proprietary company (Pty Ltd) provides a separate Australian legal entity with limited liability. It requires at least one director who ordinarily resides in Australia, a registered office and the relevant tax registrations. Consider this structure when your operations, team size or contracting needs justify direct local employment. The general two-year restriction concerns fixed-term employment contracts, rather than imposing a universal maximum duration on EOR services.

Which option fits?

You want toUsually enoughNext step when you grow
Test demand with Australian customersSell from overseas, register for GST if neededHire a first salesperson through an EOR
Get a defined project doneA genuine contractorEmploy through an EOR if the work becomes ongoing
Have one to a few people working for you in AustraliaEmployer of recordYour own subsidiary
Sign contracts and trade locally under your nameRegister as a foreign company or set up a subsidiarySubsidiary with your own payroll

Questions about doing business in Australia

It can sell from overseas and work with Australian contractors without ASIC registration. Once it carries on business in Australia, for example through a local place of business, it must register as a foreign company or operate through an Australian subsidiary.

Yes. An employer of record can employ them for you, or your company can register for PAYG withholding and employ them directly, taking on every employer obligation itself.

Generally yes, once your GST turnover connected with Australia reaches A$75,000 a year. Simplified registration is available for some offshore sellers.

Not automatically. The risk arises if the employee habitually concludes contracts for your company or works from a fixed place of business you control. Take tax advice for your situation.

Need people in Australia before you set up a company?

NNRoad employs your chosen hire through our licensed Australian employing partner.