Doing Business in Australia

Published 25 August 2026

In short

To register an Indian business in Australia, you must appoint at least one director resident in Australia with a Director Identification Number, register the company with ASIC for an Australian Company Number, obtain an Australian Business Number and Tax File Number, register for GST if turnover exceeds AUD 75,000, and comply with state payroll tax thresholds.

Key facts

Capital: Canberra
Currency: Australian Dollar (AUD)
Trade with India: US$ 24.1 billion in FY 2024-25, with India's exports at US$ 8.5 billion (Press Information Bureau, Ministry of Commerce and Industry, April 2026). In Australian dollar terms, total two way goods and services trade was AUD 50.21 billion in 2025, down from AUD 53.06 billion in 2024 (High Commission of India, Canberra).
Indian community: Over 976,000 people of Indian origin, about 3 percent of Australia's population, per the Australian Census 2021 as cited by the High Commission of India in Canberra. Around 350,000 hold Indian passports. India is the second largest migrant group after England.

The market

Australia is a wealthy market of about 27 million people, heavily urbanised, with strong demand for imported consumer goods, food, textiles, pharmaceuticals and services. Bilateral trade was US$ 24.1 billion in FY 2024-25, with India’s exports at US$ 8.5 billion, more than double the US$ 4 billion of FY 2020-21, per the Ministry of Commerce and Industry. In Australian dollar terms, two way goods and services trade was AUD 50.21 billion in 2025 according to the High Commission of India in Canberra. India is Australia’s sixth largest trading partner.

Why Indian businesses go there

The Economic Cooperation and Trade Agreement, signed on 2 April 2022 and in force from 29 December 2022, is the main reason. Australia gave preferential access on all its tariff lines, with 98.3 percent duty free immediately and the remaining 113 lines phased over five years. From 1 January 2026, all Indian exports are eligible for zero duty entry into Australia. That is a complete tariff opening, which no other developed market has given India. Beyond tariffs, Australia is English speaking, uses common law, has a familiar accounting framework, and company registration through the Australian Business Registration Service is done online in a day. Australia also supplies India with raw materials it genuinely needs, including coal, base metals, cotton, chemicals, fertilisers and pulses.

The diaspora and business community

Over 976,000 people of Indian origin live in Australia, about 3 percent of the population, per the Australian Census 2021 as cited by the High Commission of India in Canberra, with around 350,000 holding Indian passports. After England, India is the second largest migrant source. Victoria has about 350,000, New South Wales about 316,000 and Queensland about 120,000. This is a young, educated, professionally employed community, and it functions well as a first customer base for Indian food, retail, media and services businesses, and as a hiring pool.

Sector strengths

Textiles and apparel, pharmaceuticals and generics, gems and jewellery, engineering goods and auto components, IT and professional services, agricultural and processed food, and education and skills services. Indian IT firms have a large Australian client base, and ECTA addressed the long standing problem of Australia taxing the offshore income of Indian firms supplying technical services.

The honest difficulties

Directors are the first practical problem. Every Australian proprietary company must have at least one director who ordinarily resides in Australia, and every director must obtain a Director Identification Number from the Australian Business Registry Services before appointment. That means you cannot incorporate from India alone; you need a resident director or your own visa first. Second, there is no longer a straightforward investor visa. The Business Innovation and Investment Program closed permanently to new applications on 31 July 2024, so buying or founding a business no longer buys residence. Skilled and employer sponsored routes remain, but they are salary and occupation list driven. Third, biosecurity is severe. The Department of Agriculture, Fisheries and Forestry applies some of the strictest import conditions in the world on food, plant and animal products, wooden packaging and even shipping containers, and a failed inspection means the container is treated, re-exported or destroyed at your cost. Fourth, distance and freight cost are real, and domestic distribution across a continent with few population centres is expensive. Fifth, Australian Consumer Law gives buyers strong statutory guarantees that cannot be contracted out of, and the ACCC enforces country of origin and safety labelling actively. Sixth, superannuation, payroll tax and workers compensation make employment costlier than the headline salary suggests.

How to apply

Decide whether to incorporate an Australian proprietary company or register the Indian company as a foreign company carrying on business in Australia.
Identify at least one director who ordinarily resides in Australia. This is a legal requirement for every proprietary company and cannot be waived.
Have every proposed director apply for a Director Identification Number through Australian Business Registry Services before appointment. Directors outside Australia must verify identity with certified documents, which takes longer.
Check name availability on the ASIC register and reserve the name if needed.
Register the company with the Australian Securities and Investments Commission, usually through the Australian Government Business Registration Service, which issues the Australian Company Number.
Apply through the same service for an Australian Business Number and a Tax File Number from the Australian Business Register.
Register for Goods and Services Tax with the Australian Taxation Office if turnover is or will be AUD 75,000 or more, and set up Business Activity Statement reporting.
Register your trading name as a business name with ASIC if it differs from the company name.
Open an Australian business bank account. Identity checks on non-resident directors and shareholders are thorough, so allow time.
Register for Pay As You Go withholding with the ATO before your first employee is paid, and set up Single Touch Payroll reporting.
Set up superannuation contributions for employees through a complying fund, and take workers compensation insurance with the scheme of each state where you employ people.
Register for state payroll tax in each state where your wage bill crosses that state's threshold, since the thresholds and rates differ by state.
Obtain product approvals before shipping, for example Therapeutic Goods Administration registration for medicines and devices, Food Standards Australia New Zealand compliance for food, and the Department of Agriculture, Fisheries and Forestry import permit and biosecurity clearance for food, plant, animal and timber products.
Set up your ECTA certificate of origin process in India so Australian buyers receive the zero duty preference, and confirm your labelling meets Australian Consumer Law country of origin and safety requirements.

What the trade actually looks like

→ India sells

Textiles, apparel and made-upsA major gainer from ECTA, and from 1 January 2026 all Indian tariff lines enter Australia duty free.
Pharmaceuticals and generic medicinesRequires Therapeutic Goods Administration registration, but duty free entry improves competitiveness against other suppliers.
Gems and jewelleryA long standing export line to the Australian retail trade.
Engineering goods and auto componentsIndia's exports to Australia grew 8 percent year on year in FY 2024-25, with engineering among the drivers.
IT and professional servicesIndian IT firms have significant Australian contracts, and ECTA addressed the taxation of offshore income from technical services.
Agricultural and processed food productsRice, spices and processed foods, subject to strict biosecurity clearance.

← India buys

CoalCoking and thermal coal are the largest single Australian export line to India, feeding Indian steel and power.
Base metals and mineralsNamed by PIB among the essential raw materials Australia supplies to Indian industry.
Raw cottonECTA gave Indian textile mills duty free access to Australian cotton, which lowers input cost for the export chain.
PulsesChickpeas and lentils for the Indian food market, a politically sensitive but commercially significant flow.
Chemicals and fertilisersListed by PIB among Australia's essential raw material supplies to India.
Education servicesAustralia is a major destination for Indian students, and education is one of its largest services exports to India.

Treaties and agreements with India

India Australia Economic Cooperation and Trade Agreement (IndAus ECTA) Signed 2 April 2022, in force 29 December 2022

Australia gave preferential access on all its tariff lines, with 98.3 percent duty free from day one and the remaining 113 lines phased over five years. From 1 January 2026 every Indian export line enters Australia at zero duty. India in return opened lines including raw materials such as coal and cotton. You must meet the rules of origin and issue the correct certificate of origin to claim it.

India Australia Comprehensive Economic Cooperation Agreement (CECA) Under negotiation; 11th round August 2025, comprehensive offers exchanged June 2026

The intended successor to ECTA, widening coverage to services, investment, government procurement and digital trade rather than mainly goods. Until it concludes, services access rests on each side's existing commitments, so check professional recognition and licensing rules sector by sector rather than assuming reciprocity.

Double Taxation Avoidance Agreement Signed 25 July 1991, in force 30 December 1991, amended by protocol in December 2011

Prevents double taxation and sets withholding tax ceilings and the permanent establishment threshold. The 2011 protocol updated exchange of information and assistance in collection. Alongside ECTA, Australia addressed the taxation of offshore income earned by Indian firms providing technical services to Australian clients, which had been a long standing irritant for Indian IT.

Which company type to use

Proprietary company limited by shares (Pty Ltd)	The standard vehicle. Up to 50 non-employee shareholders, no minimum capital, but at least one director must ordinarily reside in Australia. Most are small proprietary companies exempt from lodging audited accounts.
Public company limited by shares (Ltd)	Needed for public fundraising or listing. Requires at least three directors, two of whom must ordinarily reside in Australia, plus a company secretary and audited accounts.
Registered foreign company (branch)	The Indian company registers with ASIC as a foreign company carrying on business in Australia and appoints a local agent. It must lodge the parent's financial statements, which become public.
Branch or subsidiary of a foreign company as an Australian trust	Discretionary and unit trusts with a corporate trustee are common in Australian business, particularly for property and family owned operations, but the tax treatment for a foreign beneficiary is complex.
Partnership or sole trader	Simple and cheap but with unlimited personal liability, and it still requires an ABN and, for a foreign national, valid work rights. Rarely appropriate for an inbound business.

Visas and tax

Getting yourself there

There is no current business investor visa, because the Business Innovation and Investment Program closed permanently to new applications on 31 July 2024. Practical routes are the employer sponsored Skills in Demand visa subclass 482, the Employer Nomination Scheme subclass 186 for permanent residence, the points tested subclass 189 and state nominated subclass 190, and the National Innovation visa subclass 858 for globally recognised talent. Business visitors use subclass 600, which excludes productive work.

What you will pay

Company tax is 30 percent for most companies. A reduced rate of 25 percent applies to base rate entities, meaning companies with aggregated turnover below AUD 50 million whose passive income does not exceed 80 percent of assessable income. GST is 10 percent with a AUD 75,000 registration threshold. State payroll taxes and workers compensation premiums apply on top of wages, and compulsory superannuation is an additional employer cost. A Double Taxation Avoidance Agreement with India exists, signed on 25 July 1991 and in force from 30 December 1991, amended by a protocol in December 2011.

Indian government support for this market

Federation of Indian Export Organisations (FIEO)

The apex export body under the Department of Commerce. It issues Registration cum Membership Certificates, organises Australian buyer seller meets, and has run the main exporter awareness programmes on claiming ECTA preference, including how to complete the certificate of origin correctly so Australian customs accepts the zero duty claim.

Apparel Export Promotion Council (AEPC)

The Department of Commerce council for garments, the sector that gained most from ECTA's tariff elimination. AEPC runs Australian buyer programmes, supports members on retailer compliance and social audit requirements, and advises on rules of origin for apparel and made-ups where fabric sourcing can decide whether you qualify for preference.

Pharmaceuticals Export Promotion Council of India (Pharmexcil)

The Department of Commerce council for pharmaceuticals. Australia is a regulated market where the Therapeutic Goods Administration controls registration, and Pharmexcil helps members navigate TGA listing and registration pathways, GMP clearance and dossier requirements, and raises regulatory barriers through official channels.

Trade Connect ePlatform, Directorate General of Foreign Trade

The Department of Commerce single window launched on 11 September 2024. It links Importer Exporter Code holders with the High Commission of India in Canberra and the consulates, export promotion councils and trade experts, and carries an FTA benefit lookup covering ECTA so you can confirm your HS code qualifies before quoting a duty free price.

Frequently asked questions

Can I register an Australian company from India without being there?

No. Every Australian proprietary company must have at least one director who ordinarily resides in Australia. This legal requirement cannot be waived. Every director must also obtain a Director Identification Number from Australian Business Registry Services before appointment.

What is the Australian Company Number and how do I get it?

The Australian Company Number is issued by the Australian Securities and Investments Commission when you register your company. Registration is done through the Australian Government Business Registration Service, which typically completes it online in one day.

Do I need to register for GST in Australia?

Yes, if your turnover is or will be AUD 75,000 or more, you must register for Goods and Services Tax with the Australian Taxation Office and set up Business Activity Statement reporting.

What happens with payroll tax for Indian businesses in Australia?

You must register for Pay As You Go withholding before paying your first employee and set up Single Touch Payroll reporting. Additionally, payroll tax registration is required in each state where your wage bill exceeds that state's threshold, since thresholds and rates differ by state.

Do I need workers compensation insurance for Australian employees?

Yes. You must take out workers compensation insurance through the scheme of each state where you employ people. Superannuation contributions for employees must also be set up through a complying fund.

From when do Indian exports get zero duty into Australia?

From 1 January 2026, all Indian exports are eligible for zero duty entry into Australia under the India-Australia Economic Cooperation and Trade Agreement. Currently 98.3 percent enter duty free.

Before you apply: confirm every date, fee and eligibility rule on the official website linked on this page. Public and Policy is an independent portal, not a government body, and details change without notice.