Doing Business in Australia Without Setting Up a Company

Option 1: Sell from overseas
Option 2: Work with contractors
Option 3: Employ staff through an employer of record
Option 4: Register as a foreign company
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 to | Usually enough | Next step when you grow |
|---|---|---|
| Test demand with Australian customers | Sell from overseas, register for GST if needed | Hire a first salesperson through an EOR |
| Get a defined project done | A genuine contractor | Employ through an EOR if the work becomes ongoing |
| Have one to a few people working for you in Australia | Employer of record | Your own subsidiary |
| Sign contracts and trade locally under your name | Register as a foreign company or set up a subsidiary | Subsidiary with your own payroll |
Questions about doing business in Australia
Can a foreign company do business in Australia without registering?
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.
Can I hire employees in Australia without a company there?
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.
Do I need to register for GST as a foreign business?
Generally yes, once your GST turnover connected with Australia reaches A$75,000 a year. Simplified registration is available for some offshore sellers.
Does employing someone in Australia create a permanent establishment?
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.