Setting Up in Australia: An Indian Founder's Accounting Guide
You've decided Australia is your next market. Before you invoice a single Australian dollar, you need an entity there, and the setup looks nothing like the MCA process you ran to start your Pvt Ltd. Different regulator, different tax office. Most of it is manageable, and a lot of it will feel familiar once you know what each piece maps to back home.
This guide walks through the accounting, tax, GST and payroll side of setting up in Australia, framed against the Indian equivalents you already file under. It is general information, not tax advice, so confirm the specifics before you act.
Quick overview: the India-to-Australia map
| What You Know in India | The Australian Equivalent |
|---|---|
| MCA / ROC company registration | ASIC company registration |
| Private Limited (Pvt Ltd) | Proprietary Limited (Pty Ltd) |
| PAN + GSTIN | ABN (Australian Business Number) + GST registration |
| Income Tax Department | ATO (Australian Taxation Office) |
| GST returns (GSTR filings) | GST reported on your BAS |
| Annual ITR | Quarterly BAS lodgement |
| TDS on salaries | PAYG withholding |
| PF / EPF contributions | Superannuation guarantee |
| Tally / ClearTax | Xero |
Do you need an Australian resident director?
Yes, and this is the first requirement that catches most founders out. In India a Pvt Ltd can run with a board that lives entirely in India. Australia's corporate regulator, ASIC, will not register a Pty Ltd unless at least one director ordinarily resides in Australia. You can appoint a local co-founder or trusted local contact as that director, or pay for a nominee-director service, but you cannot skip the requirement. Sort this out before you file anything else, because it shapes how the company is owned and controlled.
How do you register a Pty Ltd and get your ABN and GST?
The core setup runs in a clear order. It is close enough to your MCA-then-GSTIN sequence that the logic will feel familiar.
- Register the Pty Ltd with ASIC. You choose a company name, list your directors (including the resident one), record your shareholders, and pay the registration fee. ASIC issues an ACN, the Australian Company Number, which is the equivalent of your CIN.
- Apply for an ABN with the ATO. The ABN is your business tax identity, the way PAN plus GSTIN identifies you in India. It is free and usually issued quickly online. Every invoice you raise in Australia carries it.
- Register for GST. This is compulsory once your Australian turnover reaches AUD 75,000 in a 12-month period, and you can register voluntarily before that if you want to claim GST credits on your setup costs. Australian GST is a flat 10 per cent, simpler than the multi-slab structure you deal with under Indian GST.
- Set up an Australian business bank account, add a PAYG withholding registration if you plan to hire, then connect your cloud bookkeeping so every transaction lands in one ledger.
That whole sequence is doable in-house if you are comfortable with online government portals, which you are if you have registered a company in India.
How do BAS, PAYG and super differ from ITR, TDS and PF?
This is where the calendar changes, and where founders trip up. In India the rhythm is annual: one ITR a year, TDS deducted through the year, PF paid monthly. Australia works to the quarter instead.
Your main recurring obligation is the Business Activity Statement, or BAS. Most small companies lodge it quarterly, reporting the GST you collected and paid, plus your PAYG amounts, in one form. Miss the deadline and the ATO applies failure-to-lodge penalties, so the dates matter.
PAYG withholding is your version of TDS on salaries: you hold back tax from employee pay and remit it to the ATO. The superannuation guarantee is the closest thing to PF, except the rate is higher. Employers must pay 12 per cent of an eligible employee's earnings into their nominated super fund, and that is on top of salary, not deducted from it. Budget for it properly, because it is a real cost of every Australian hire.
When to bring in a local Australian accountant
Registering your ABN and GST with the ATO is manageable yourself, much like a first GSTIN registration back home, but Australia's quarterly BAS lodgements and PAYG withholding run on a different calendar from the TDS and annual ITR cycle you file under in India. A registered Australian tax agent can lodge your BAS for you and set up cloud bookkeeping in Xero so your Australian entity and your India books stay reconciled. Because Australian company registration and quarterly BAS work differently from the MCA filings and GST returns you know in India, Indian founders often bring in a local specialist once they have an entity running, and one Brisbane-based option is the Walker Hill accounting team, a certified Xero partner that works specifically with startups and small businesses. A good local accountant will also advise on the right structure for a foreign-owned business (a local Pty Ltd subsidiary versus a branch office) and on the resident-director requirement, since ASIC needs at least one director who ordinarily resides in Australia before that becomes expensive to unwind.
Xero deserves a note of its own. In India you have probably run your books in Tally or ClearTax. Xero is the cloud platform most Australian small businesses and their accountants use for GST coding, BAS preparation, bank feeds and payroll. An accountant who is a certified Xero partner can keep your Australian ledger and your Indian accounts reconciled without the monthly export-and-email exercise.
Conclusion
The Australian setup is about as involved as India's; the details are what differ. Get the resident director sorted first, register the Pty Ltd with ASIC, then pick up your ABN and GST from the ATO. The registration you can handle yourself. The ongoing cycle of BAS, PAYG, super and record-keeping is where a local tax agent earns their fee and keeps you clear of penalties.
FAQ
What is the Australian equivalent of a Pvt Ltd?
A Proprietary Limited company, written as Pty Ltd. It is the standard private company structure and the one most Indian startups use for an Australian subsidiary.
Do I have to register for GST straight away?
Only once your Australian turnover hits AUD 75,000 in a rolling 12-month period. Below that it is optional, though registering early lets you claim GST credits on your startup expenses.
How often do I lodge a BAS?
Most small companies lodge quarterly. Larger turnover can trigger monthly reporting, and some very small businesses report annually. The ATO tells you your cycle when you register.
Can all my directors stay in India?
No. ASIC requires at least one director who ordinarily resides in Australia before it will register your Pty Ltd.
Is Australian GST the same as Indian GST?
The principle is the same, the structure is simpler. Australia charges a single 10 per cent rate rather than the multiple slabs you deal with in India, and you report it through your BAS instead of separate GSTR filings.
How much is superannuation?
Employers pay 12 per cent of an eligible employee's ordinary earnings into their super fund, paid on top of wages. It is broadly the Australian counterpart to PF, at a higher rate.
Do I need an Australian accountant or can I use my Indian one?
Your Indian accountant can keep your India books, but BAS lodgement and ATO dealings are best handled by a registered Australian tax agent who knows the local deadlines and can work in Xero alongside your existing records.
