Open a Representative Office in Australia: Registration

Foreign businesses have the possibility to open a representative office in Australia. Also known as a liaison office, this is a type of business establishment that is created for non-commercial purposes only.

In other words, it can be set up by companies for various purposes, as defined by the law, but it can’t operate as a commercial company, which has as a main purpose developing a business activity designed for obtaining profits. There are certain characteristics the office must have, and our consultants in company formation in Australia can help you understand what the Australian liaison office requires.

What are the main registration steps for a liaison office in Australia?

Although the representative office is not set up for commercial purposes, it still needs to comply with various steps for company incorporation in Australia, which are designed specifically for this entity.

Quick Facts
What is a liaison office	A liaison office (or a representative office) refers to an establishment in which a foreign company will engage only in non-commercial activities.
Incorporation obligations	In order to open a representative office in Australia, investors must secure a registered address, appoint a local representative, and register for PAYG withholding and superannuation for its employees.
Types of activities it can undertake	A liaison office will generally conduct market research activities, which will help the parent company in establishing its business strategy if and when will enter the Australian market.
Have a registered office in Australia (yes/no)	Yes
Registration costs	There are registration costs for the representative offices of foreign banks ($10,000 application fee, $3,000 yearly fee).
Capital requirements	One can open a representative office in Australia without submitting any minimum capital.
Duration of the registration process	It can take around 3 to 5 weeks to open a representative office in Australia.
Tax obligations	Its tax obligations mainly derive from paying employment taxes. To this, it is necessary to calculate various operating costs.
Reporting formalities (yes/no)	Yes
Institution in charge with the registration formalities	Australian Securities &Investments Commission (ASIC), Australian Taxation Office (ATO), Australian Prudential Regulation Authority (APRA – in charge with the registration of representative offices of foreign banks).
Law applicable to liaison offices	Some of the provisions of the Corporations Act, the Australian Business Number Act, the Income Tax Assessment Act.
Documents that must be submitted by the parent company	Application form, the foreign company’s incorporation documents and certificates, a letter of appointment of a local representative, proof of having a registered address, proof of paying the registration fee (when applicable).
Licensing requirements	It depends on the industry.
Appointing an accountat (yes/no)	Yes
Services offered by our team	Our team can help foreign investors prepare the documentation for registration, address the local institutions, assist in the employment process and offer ongoing consultancy services, including accounting.

There aren’t many steps foreign companies have to comply with, but it is mandatory to have a registered address in the name of the liaison office. This requirement is necessary for all types of business establishments, and it is imposed to a shelf company in Australia as well.

Another necessary incorporation requirement is to appoint a local agent (an Australian resident individual or a company, s 601CF Corporations Act). The local agent can be a natural person or a company and must also have residency in Australia. Provided that the office will hire employees, they need to be registered with the Australian Taxation Office (ATO).

Open a representative office in Australia for a foreign bank

Foreign investors who want to set up a company in Australia that operates in the banking industry can alsoset up a representative office. However, for theliaison offices of foreign banks, special procedures must be completed, different than the ones imposed to therepresentative offices of overseas companies.

One of the main differences is that foreign bank owners must obtain a written consent from the Australian Prudential Regulation Authority (APRA). The institution will decide if the foreign bank meets the minimum standard imposed in this field.

It must be noted that foreign banks must obtain the approval of this institution for the usage of the word “bank” in connection to the words “representative office”, both of which will appear in the trading name used in Australia.

The basic conditions for approval are given by Section 67 of the Banking Act 1959. For this, the foreign bank must meet 4 basic criteria and provide information on 12 different matters. In order to maintain the right to operate through a liaison office, investors must adhere to 14 basic conditions.

These refer to the operations carried out here, the reporting obligations to APRA, financial obligations, etc. It must be noted that the liaison office can’t engage in any banking operations (such as deposits) or financial transactions. The latter are possible as long as they are connected to the maintenance of the office in Australia.

Our team of specialists in company formation in Australia can offer in-depth advice on other types of obligations the liaison office can have.

Fees charged to the liaison offices of foreign banks in Australia

Among the conditions for the registration of a liaison office set up by a foreign bank, we mention the payment of registration fees. The Act mentioned above (Banking Act 1959) establishes the fees charged in this case. The law mentions 2 types of fees – registration and yearly (operating) fees.

The application for consent obtained from APRA costs $10,000, while the yearly fee, through which the foreign bank shows that it wants to maintain its operations in Australia, is $3,000. Investors should know that it doesn’t matter how many representative offices they will set up in this country.

Thus, if an investor opts to open one or more representative offices for a foreign bank or company, the yearly fee will be paid only once (the fee is not charged per each place of business).

What are the employment obligations in Australia?

Regardless if you have decided to open a company in Australia or to operate through a liaison office, if you will need to hire employees (and this is almost always the case), you will need to complete mandatory employment registration steps.

This is due to the fact that employment in Australia is taxed and a part of the salary is processed as taxes, benefits and social security, charged by the Australian authorities. The taxation is concluded through the company where the employer works, regardless of the nature of the establishment.

This means that it doesn’t matter if you open a representative office in Australia, a non-profit entity, a sole trader or a commercial company. As long as there is an employment contract signed, the owner of the business must conduct the formalities imposed by the tax law applicable here.

Currently, the employment taxes are charged by ATO, where all entities must register for corporate taxation, employment taxation and for any other tax obligation. With regards to employment, we present the following:

for a yearly income of up to $18,200, the tax is 0%;
income above $18,201 and maximum $45,000 is taxed at a rate of 15%;
the employment income of minimum $45,001 and maximum $135,000 is charged at a rate of 30%;
income of $135,001 to $190,000 is taxed with an income tax of 37%;
any income above $190,001 is charged with the highest personal income tax, of 45%.

Please know that the taxes presented above are charged to employees who are Australian residents. They are applicable for the financial year of 2026-2027. In Australia, the financial year starts on 1st of July of the current year and ends on June 30th of the next financial year.

If you are interested in other taxes applicable here and the tax reporting obligations, you can rely on our specialists in company formation in Australia. Mind that the taxes presented above are charged to employees at the same rates regardless of the business establishment in which they are employed.

Therefore, if you hire Australian residents when you open a representative office in Australia, you will need to pay the tax rates presented above, in accordance with the annual income obtained by the employees.

We invite you to contact our consultants for advice on the employment regulations available for non-residents; we can help you register the liaison office and you can rely on us to set up a company in Australia as well.