Subsidiary set-up Australia

Setting up a subsidiary in Australia: Key steps

Emmanuel Bisi
Author

September 10, 2025
Published on

Setting up a subsidiary in Australia is a strategic step for any company wishing to expand its presence in the Asia-Pacific region (APAC zone).
However, to ensure success, it is crucial to follow a well-defined process.

This article describes the key stages involved in setting up a subsidiary in Australia, with a focus on practical aspects and local particularities.

Création de filiale en Australie Les étapes clés (1)

1. Understanding and preparing for the Australian market

Even if your business is already well established in your sector, it's essential to take into account the particularities of the Australian market before setting up a subsidiary.
Understanding local expectations, business culture and the country's legal and regulatory specificities will enable you to better anticipate the challenges your subsidiary may encounter.

2. Choosing the right legal structure

One of the first decisions to be made when setting up a subsidiary in Australia is to choose the most appropriate legal structure.Here are some common options:

Private Company: This is the most common form for subsidiaries. It offers limited liability protection and helps limit risk.

Branch Office: An option for companies wishing to retain centralized management from their head office. This is the most common form for subsidiaries. It offers limited liability protection and risk mitigation.

Partnership: Useful for companies wishing to partner with a local company

Each structure has its advantages and disadvantages in terms of taxation, regulation and management. Understanding these aspects is essential to making an informed choice.

3. Registering with local authorities

Once the legal structure has been chosen, it is necessary to register the subsidiary with the Australian Securities and Investments Commission (ASIC). Obtaining an Australian Business Number (ABN) is also essential for carrying out commercial transactions. This number identifies your company to the Australian government for all tax and legal purposes.

4. Setting up banking services

Opening a bank account is an essential step for a subsidiary in Australia.
The "Big 4" Australian banks (ANZ, Commonwealth Bank, NAB, Westpac) are the main options. Each offers different advantages in terms of online banking, KYC (Know Your Customer) support, and account management.
Expandys particularly recommends Westpac for its international expertise, the quality of its KYC customer service, and the ease of use of its online banking services, including via a high-performance mobile application.

Création de filiale en Australie : Les étapes clés

5. Human resources management and legal compliance

Australia has a strict legal framework governing the hiring and management of employees. As an employer, you must comply with local labor laws, particularly those relating to employment contracts, occupational health and safety, and employee rights.

If you don't want to get directly involved in large-scale human resources management, a "portage salarial" solution may be ideal. This solution simplifies the administrative and tax management of your employees, while ensuring compliance with Australian laws. Expandys offers freelance administration services to enable you to concentrate on your core business, while effectively managing your human resources.

6. Complying with tax obligations

Australian taxation can be complex, especially for international companies. It's crucial to understand the different taxes and tax obligations, such as Goods and Services Tax (GST),Income Tax and Fringe Benefits Tax (FBT). Your subsidiary will also need to register with the Australian Taxation Office (ATO).

In addition, if you plan to operate cross-border, it's important to understand the tax arrangements between Australia and your home country to avoid double taxation.

7. Assistance every step of the way from Expandys

At Expandys, we support our clients throughout the process of setting up a subsidiary in Australia. Our expertise covers not only the legal and tax aspects, but also human resources management, banking set-up and regulatory compliance.

We work in partnership with our customers to offer a turnkey solution, facilitating their entry into the Australian market.