Branch Office (Registered Foreign Company) (Branch)
Registered Foreign Company
Company formation in Australia
The Branch is best suited for: Foreign companies testing the Australian market before committing to a subsidiary, Multinational firms that need a local presence for specific contracts or government tenders, Companies that want to repatriate profits without dividend withholding complications. A branch is taxed at the standard 30% corporate tax rate on Australian-sourced income (the base rate entity concession of 25% does not apply to foreign-owned branches). Profits repatriated to the parent are not subject to dividend withholding tax. The branch may benefit from Australia's double tax treaty network if the parent company is resident in a treaty country. Transfer pricing rules apply to transactions between the branch and its parent.
- Foreign companies testing the Australian market before committing to a subsidiary
- Multinational firms that need a local presence for specific contracts or government tenders
- Companies that want to repatriate profits without dividend withholding complications
Key Facts
Step-by-Step Formation Process
Appoint a local agent
Designate at least one locally resident agent authorised to accept service of process on behalf of the foreign parent company. This person must be ordinarily resident in Australia.
Prepare parent company documents
Gather certified copies of the parent company's certificate of incorporation, constitution, and a board resolution authorising registration of the branch in Australia. All foreign-language documents must be accompanied by certified English translations.
Register with ASIC
Lodge Form 402 (Registration of a foreign company) with ASIC, including the parent's details, local agent information, registered office address in Australia, and the AUD 559 registration fee.
Ongoing compliance
File annual financial statements with ASIC (including the parent company's accounts), lodge tax returns with the ATO, and maintain a registered office and local agent at all times.
Required Documents
- Certified copy of parent company's certificate of incorporation
- Certified copy of parent company's constitution
- Board resolution authorising Australian branch registration
- Particulars of directors of the parent company
- Passport and proof of address of the local agent
- Registered office address in Australia
- Certified English translations of all foreign-language documents
Cost Overview
Tax Treatment
A branch is taxed at the standard 30% corporate tax rate on Australian-sourced income (the base rate entity concession of 25% does not apply to foreign-owned branches). Profits repatriated to the parent are not subject to dividend withholding tax. The branch may benefit from Australia's double tax treaty network if the parent company is resident in a treaty country. Transfer pricing rules apply to transactions between the branch and its parent.
Pros & Cons
- Not a separate legal entity — seamless integration with global operations
- Can repatriate profits to the parent without dividend withholding tax (subject to treaty provisions)
- Simpler to wind down than a subsidiary if the Australian venture does not succeed
- Appropriate for project-based or time-limited operations in Australia
- Parent company has unlimited liability for all obligations of the branch
- Must lodge the parent company's audited accounts with ASIC annually, exposing group financials
- Not eligible for the small business tax concessions available to Australian-incorporated entities
- Less credible with local partners and clients compared to a Pty Ltd
- Higher annual compliance cost due to dual filing requirements
Other Structures in Australia
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.