Starting a business in Australia as a foreigner

Are you a budding entrepreneur with your sights set on starting a business in Australia as a foreigner? You’re in good company. More than 400,000 startups entered the market in 2024¹.

In this blog, we’ll break down everything you need to know about getting your business up and running as a non-citizen in Australia. We’ll cover visa types and legal requirements, and introduce Wise as an option for business banking.

Can a foreigner start a business in Australia?

It is possible for a foreigner to start a business in Australia. But they typically face more difficulties than an AU citizen, depending on their resident status. These include acquiring a very specific type of visa — a regular tourist visa isn’t enough — and understanding the unique business registration laws in Australia.

Visa to start a business in Australia

You’ll need a visa to start a business if you aren’t an Australian citizen². Unfortunately, it’s much harder to acquire one in 2025. The government closed its Business Innovation and Investment Program (BIIP) with several visa types in July 2024³.

It has now replaced it with a new National Innovation visa (NIV) Subclass 858, which is invite-only⁴. This visa is for “exceptionally talented migrants,” including entrepreneurs who want to start a business.

You can register your interest by completing the Expression of Interest (EOI) form on the government’s Home Affairs website¹².

With an NIV, you can stay in Australia permanently to work and study, with a path to citizenship if you are eligible. It costs from 4,840 AUD⁵.

Setting up a business in Australia as a foreigner

After securing a visa, you can focus your efforts on setting up a business. The process for foreigners isn’t too different compared to Australian citizens, but there are certain factors to be aware of. Let’s take a look at what’s required to start a business as a foreigner.

Business structure

First, you’ll need to define a business structure. There aren’t any limitations in terms of structure for non-AU residents, but the four most popular are sole trader, partnership, company, and trust⁶. Each of these has different tax and legal obligations.

The business.gov website¹³ has a guide on how to choose a business structure if you’re unsure. The main consideration is selecting a structure that fits your business needs. For example:

• Sole trader - A simple structure where you own and operate a business and are legally responsible for all aspects of it, including finances.
• Company - A more complex structure that’s a separate legal entity offering limited liability.

Registration

Next, it’s time to register a business name, which requires an Australian Business Number (ABN) — an 11-digit number that’s unique to your business for taxes and invoicing. Those two are essential, but you might also need to register for Goods and Services Tax (GST). It’s optional for new startups, but everyone including non-residents have to sign up for GST when business turnover exceeds $75,000 per year⁷.

Another thing you’ll need is a Tax File Number (TFN) to submit your tax returns. This is issued automatically by the Australian Taxation Office (ATO) when you apply for an ABN⁸. Sole traders can use their personal TFN.

There are a couple more steps for companies — registering with the Australian Securities and Investments Commission (ASIC) and applying for a director ID⁹. The latter is a unique identifier that helps prevent fraud.

Licenses

In addition to registration, you must acquire the necessary licences and permits to trade. These usually vary by state, territory, and government areas in Australia. There are also business-specific licences. For example, if you want to open a pop-up restaurant, you’d typically have to get a licence from the local council and a food business permit to ensure you meet food safety regulations.

You can use the Australian Business Licence and Information Service (ABLIS) to find the exact licences you’ll need to start and run your business.

If you’re currently renting a property and planning to use it as a base for the business, you should also notify the landlord about your plans.

Tax

Tax is as much a certainty in business as in general life. You must submit income tax returns annually, even if you don’t expect to surpass the minimum tax threshold. This isn’t an immediate concern after just starting up, but manage your finances with tax reporting in mind. That’s why many startups, even sole traders, open a business bank account to easily track income and expenses.

Additional info: If you plan on having employees or contractors, you’ll have to collect pay as you go (PAYG)¹⁴ withholding when you pay them.

Directors

Companies need to have directors. If you’re just starting a company, it’s likely to be a private or proprietary company. These must have at least one director who resides in Australia. All public companies — those that offer shares and trade on a stock exchange — are required to have three directors, with two of those in Australia¹⁰.

Legal

Australia has specific laws for employment, contracts, fair trading, product safety, marketing and other areas of business that you should be aware of before getting started.

For example, if you want to start a dropshipping business, you should familiarise yourself with import and export rules.

The government has a guide to the ‘legal essentials’ for a business in Australia.

Business bank account

Starting a company, partnership, or trust? You’re legally required to open a business bank account for these structures¹¹. Sole traders can get by with a personal account, but separating business finances for simpler accounting and tax reporting is always a good idea.

You can open a business bank account as a foreigner if the business is registered in Australia with an address in the country. However, you might have to gather and submit more documents as evidence. The essentials you’ll need include:

• Personal proof of identity with a photo ID
• Business name and registration
• Proof of primary business address
• Australian Business Number (ABN)
• Industry type
• Tax File Number (TFN)

A separate business bank account can also help you secure funding, so bear this in mind if you are going to look for loans or venture capital.

If you’re struggling to open a business bank account in Australia because you need proof of address or to verify it in person, you could opt for an online multi-currency account. This will give you the local account details needed to manage your finances.

Wise Business: A global business account for foreign business owners

Wise Business is a flexible, borderless account that gives you the tools to manage transactions within Australia and globally. As an alternative to traditional banks, Wise makes international finances cost-effective.

You can sign up for an account today — there’s no long-winded registration or tedious paperwork. You’ll just need to tell us some details about your business as part of the account verification process.

What's more, you'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

Sources:

1. Australian Bureau of Statistics - Australian business count
2. Business Gov Au - Start a business as a foreigner in Australia
3. Home Affairs - BIIP closure and refunds.
4. Home Affairs - National Innovation Visa
5. Home Affairs - National Innovation Visa overview
6. Business Gov Au - Business structures
7. Business Gov Au - Goods and services tax
8. Business Gov Au - Register for a tax file number
9. Business Gov Au - Register a company
10. ASIC - Starting a small business company
11. Business Gov Au - Set up your business bank account
12. EOI form
13. Choosing a business structure
14. PAYG