Author: Manu Rao | Updated: March 2026
At a Glance
| Indian Diaspora | 916,330 Indian-born (June 2024 ABS data, second-largest overseas-born group). 783,958 declared Indian ancestry at 2021 Census (3.1% of population). Fastest-growing migrant community. Youngest average age (34) among major groups. |
| FDI Route | Automatic route for most sectors |
| DTAA | 15% dividend withholding |
| Document Authentication | Apostille (Hague Convention member) |
| Realistic Timeline | 6-10 weeks |
| Currency | AUD |
Why Australian Businesses Are Expanding into India
Something shifted in December 2022. That is when ECTA -- the India-Australia Economic Cooperation and Trade Agreement -- came into force. Since then, bilateral goods trade has climbed to $24.1 billion in FY 2024-25, roughly double the $12.2 billion recorded in FY 2020-21.
The acceleration is not slowing down. From January 2026, every single Australian tariff line sits at zero duty for Indian exports. That is 100% tariff elimination. On the Indian side, over 85% of Australian goods already enter at preferential rates.
Both governments are now pushing for the full upgrade: CECA (Comprehensive Economic Cooperation Agreement), which will cover services, investment, digital trade, education, and critical minerals supply chains. Eleven rounds of CECA negotiations have been completed, with both sides targeting AUD 100 billion in bilateral trade by 2030.
India exported $8.58 billion to Australia in FY 2024-25 and imported $15.52 billion, creating a $6.94 billion trade deficit driven largely by Australian coal, gold, LNG, and alumina. That deficit is actually an opportunity for Indian operations: it shows strong Australian export demand that a locally registered entity can tap into.
The Institutional Money Pipeline
Australian superannuation funds manage over AUD 3.5 trillion in retirement savings. Increasingly, those funds are looking at India. AustralianSuper, Future Fund, and Macquarie Group are among the institutional investors with India exposure. The National Investment and Infrastructure Fund (NIIF) actively engages Australian superannuation funds for co-investment in Indian infrastructure.
FDI from Australia into India has been modest in absolute terms -- around $1.5 to $2 billion cumulative between April 2000 and March 2024, placing Australia outside the top 15 FDI sources. But the direction is clear. The trade agreement infrastructure is being built. The capital is following.
On the reverse side, Indian companies including Adani Group, Infosys, TCS, Wipro, and Sun Pharma have already built a large presence in Australia.
916,000 Indian-Born Australians
Per the Australian Bureau of Statistics (June 2024 data), 916,330 Indian-born people live in Australia. That makes India the second-largest overseas-born group, behind only England. At the 2021 Census, 783,958 people declared Indian ancestry, representing 3.1% of the population.
This is the fastest-growing migrant community in Australia, with the youngest average age (34 years) among all major migrant groups. India is now the top source country for Australian permanent migration. Highest concentrations are in Sydney, Melbourne, Perth, and Brisbane.
Many of these residents maintain business and family ties to India, creating a natural corridor for cross-border company formation.
Choose Your Entity Type
Australian investors have four main options for establishing a business presence in India. The right choice depends on whether you want to earn revenue in India, the level of control you need, and your FDI route preferences.
| Feature | Private Limited Company | LLP | Branch Office | Liaison Office |
|---|---|---|---|---|
| FDI Route | Automatic (most sectors) | Automatic (limited sectors) | RBI approval | RBI approval |
| Minimum Directors/Partners | 2 directors, 1 must be Indian resident | 2 partners, 1 must be Indian resident | Not applicable | Not applicable |
| Resident Requirement | 1 director with 120+ days stay in India in preceding year | 1 designated partner with 120+ days stay in India | Authorized representative in India | Authorized representative in India |
| Annual Audit | Mandatory | Mandatory if turnover exceeds INR 40 lakh or contribution exceeds INR 25 lakh | Mandatory | Mandatory |
| Separate Legal Entity | Yes | Yes | No (extension of parent) | No (extension of parent) |
| Can Earn Revenue in India | Yes | Yes | Yes | No |
The Private Limited Company is the standard choice for Australian investors. It gives you a clean automatic-route FDI path, limited liability, and full operational independence.
Branch Offices and Liaison Offices require RBI approval and are extensions of the Australian parent -- meaning the parent is liable for the Indian operations. Liaison Offices cannot earn revenue in India; they are limited to communication and liaison activities.
One fact that trips people up: the resident director/partner requirement is 120 days of stay in India, not 182 days. Many advisory websites still cite the wrong number.
FDI Route and Sector Rules for Australian Investors
Australia does not share a land border with India. Press Note 3 (which subjects investments from China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan to government approval) does not apply to Australian investors.
Under the automatic route (no prior government approval needed), Australians can invest 100% in:
- Information technology and business process outsourcing
- Manufacturing and industrial production
- Mining and exploration (subject to mining law)
- Renewable energy and clean technology
- Pharmaceuticals (greenfield projects)
- E-commerce (marketplace model only)
- Infrastructure, including roads, bridges, and ports
Government approval route sectors:
- Defence beyond 74%
- Print media beyond 26%
- Multi-brand retail (51% cap, needs state government consent)
- Broadcasting (varies by segment, 49% to 100%)
Prohibited: atomic energy, lottery and gambling, chit funds, Nidhi companies, tobacco manufacturing, and real estate business (with exceptions for townships and construction development).
Where Australian investors tend to focus in India: mining and critical minerals, clean energy, infrastructure (Macquarie Group is a major player in Indian toll roads and airports), education services, and IT.
The India-Australia Critical Minerals Investment Partnership, signed in 2022, adds a strategic dimension. Joint ventures in lithium, rare earths, and cobalt are being developed through the India-Australia Critical Minerals Research Hub, with off-take agreements from Australian mines already in place.
Step-by-Step Registration Process
Here is what the incorporation process actually looks like for an Australian resident or NRI.
Select entity type and state of registration. Most Australian investors go with a Private Limited Company. State choice affects stamp duty and local regulatory requirements.
Obtain a Digital Signature Certificate (DSC). Takes 1 to 3 days. You will need your passport and address proof. The DSC is required for all electronic filings with the Ministry of Corporate Affairs (MCA).
Apply for Director Identification Number (DIN). Filed through the SPICe+ integrated form along with the incorporation itself. Each proposed director receives a unique DIN.
Reserve the company name. Done through the RUN (Reserve Unique Name) service on MCA's portal. You get to submit two name options. Approval comes in 1 to 4 days.
Prepare and notarize documents. Memorandum of Association (MOA), Articles of Association (AOA), director declarations, and registered office proof. Australian documents need to be notarized by an Australian Notary Public before apostille.
Get documents apostilled through DFAT. Australia is a Hague Convention member. The Department of Foreign Affairs and Trade (DFAT), through Australian Passport Offices in each state capital, handles apostille issuance. For private documents, first get them notarized, then submit to DFAT. Processing takes 5 to 10 business days in person, or 2 to 4 weeks by mail. DFAT verifies signatures, stamps, and seals against specimens on file, then attaches the apostille certificate.
File SPICe+ with MCA. The single integrated form covers company registration, PAN, TAN, EPFO, ESIC, and bank account opening request. MCA processing: 5 to 15 working days.
Receive Certificate of Incorporation. Comes with your PAN (Permanent Account Number) and TAN (Tax Deduction Account Number). The company is now legally registered.
Document Checklist and Authentication
Documents required from the Australian side:
- Valid Australian passport (or Indian passport for NRIs) -- notarized copy
- Address proof in Australia (utility bill, bank statement, or government document dated within 2 months)
- Passport-size photographs
- Recent bank statement showing address (for each director)
- Board resolution from the Australian parent entity (if applicable)
- MOA and AOA -- executed and notarized in Australia
- Director declarations (Form INC-9)
All documents go through DFAT for apostille. The apostille process in Australia is straightforward compared to many countries, but still budget 1 to 3 weeks for preparation and processing. Mail-in processing from regional areas takes longer than in-person submission at passport offices in Sydney, Melbourne, Perth, Brisbane, or Canberra.
DTAA Tax Table: Australia-India
The India-Australia DTAA was signed in 1991 and entered into force on December 30, 1991. A Protocol amending the treaty was signed in December 2011 and became effective in April 2013.
| Income Type | With DTAA | Without DTAA (Indian domestic rate) |
|---|---|---|
| Dividends | 15% | 20% |
| Interest | 15% | 20% |
| Royalties (equipment) | 10% | 10% |
| Royalties (copyright, patent, trademark) | 15% | 10% |
| Fees for Technical Services | No separate FTS article | 10% |
The India-Australia DTAA has a distinctive feature: there is no separate article for Fees for Technical Services. This is different from India's treaties with the US, UK, and Canada. Technical services income is treated either as business profits (taxable in India only if a Permanent Establishment exists) or falls under the broader royalty definition.
What this means in practice: if your Australian company provides technical services to an Indian subsidiary but does not have a PE in India, those fees may not be taxable in India at all under the treaty. This can be a meaningful advantage over treaty structures from other countries. However, Indian domestic law rates (10 to 20%) may still apply if the treaty treatment is challenged.
The 2011 Protocol added Mutual Agreement Procedure and exchange of information provisions aligned with OECD standards. The Multilateral Instrument (MLI) also applies to this treaty.
Surcharge and health and education cess are not levied on top of treaty rates.
To claim treaty benefits, obtain a Tax Residency Certificate from the Australian Taxation Office (ATO).
Superannuation Considerations
Australian superannuation is generally locked until preservation age (currently 60). Early access is limited and taxed. India does not treat superannuation the same way Australia does -- it may not classify distributions as "pension" income, which changes how they are taxed under the DTAA.
If you permanently leave Australia, withdrawals from super may be subject to Australian tax, but DTAA adjustments can apply. Self-Managed Superannuation Funds (SMSFs) can invest in overseas property and shares, including Indian assets, but must meet the sole purpose test and arm's length dealing requirements.
Realistic Timeline
Here is the honest timeline, not the marketing version.
| Step | Timeframe |
|---|---|
| DSC and DIN | 1 to 3 days |
| Name Reservation (RUN) | 1 to 4 days |
| Document Preparation + DFAT Apostille | 1 to 3 weeks |
| SPICe+ Filing to Certificate | 5 to 15 working days |
| Bank Account Opening | 2 to 4 weeks |
| GST Registration | 1 to 3 weeks |
Total: 6 to 8 weeks from start to operational.
Websites quoting 7 to 15 days are leaving out apostille processing and bank account setup. The time zone gap between Australia and India (4.5 to 8 hours depending on your state) is manageable -- it is less of a barrier than for US or Canadian investors. Morning calls in India overlap with early afternoon in eastern Australia.
Post-Registration Compliance Calendar
Once the company is registered, the annual compliance cycle kicks in:
- FC-GPR filing with RBI: Within 30 days of share allotment to the foreign investor. Reports the investment to the Reserve Bank of India.
- Board meetings: Minimum 4 per year for a Private Limited Company. First meeting within 30 days of incorporation.
- AGM: By September 30 each year.
- AOC-4 (financial statements): Within 30 days of AGM.
- MGT-7 (annual return): Within 60 days of AGM.
- Statutory audit: Annual, mandatory regardless of turnover.
- Income tax return: October 31 deadline for companies requiring audit.
- GST returns: Monthly or quarterly depending on turnover and registration type.
- Transfer pricing documentation: Required for related-party transactions between the Australian parent and Indian subsidiary. Indian tax authorities will scrutinize these arrangements.
Bank Account Opening
Plan for 2 to 4 weeks to open a current account for your Indian company. Foreign-owned companies face enhanced KYC procedures. The bank needs to verify identities through Authorized Dealer channels, process FATCA and CRS declarations, and run internal compliance checks.
Required: Certificate of Incorporation, company PAN, board resolution authorizing the account, KYC documents for all directors, and proof of registered office.
Banks with good track records handling foreign-owned company accounts include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and State Bank of India. Some smaller banks may not have the internal compliance infrastructure to handle foreign-owned entities efficiently.
Profit Repatriation
Moving profits from India to Australia follows FEMA regulations and requires specific documentation.
Available methods: dividends, royalties, management or consultancy fees, and share buyback. Dividend Distribution Tax was abolished in 2020 -- shareholders now pay tax at the applicable DTAA rate.
The process:
- Indian company deducts TDS at the DTAA rate (15% for dividends)
- Issues Form 16A to the Australian shareholder
- A Chartered Accountant certifies the payment via Form 15CB
- Company files Form 15CA as an online declaration with the Income Tax Department
- Authorized Dealer bank processes the outward remittance to Australia
Australia has no capital controls or restrictions on receiving foreign remittances. The Foreign Income Tax Offset (FITO) available to Australian tax residents helps avoid double taxation on income already taxed in India.
Exit Strategy
You should understand the exit options before you start. Nobody talks about this, but it matters.
Strike-off (Section 248, Companies Act): For companies that have been dormant for two or more years. The Registrar removes the company from the register. This is the simpler route.
Voluntary liquidation (Insolvency and Bankruptcy Code): For active companies. Requires a special resolution, appointment of a liquidator, and NCLT clearance. Takes 6 to 12 months.
Note that the India-Australia BIT was terminated in March 2017 as part of India's mass BIT termination program. However, investments made before that date remain protected under the 15-year sunset clause (until 2032). For new investments, the CECA investment chapter being negotiated will provide the replacement framework.
How Beacon Filing Helps
We handle the complete India entry process for investors based in Australia. From initial structuring through post-incorporation compliance, here is what we cover:
- Foreign Direct Investment advisory — route selection, sector analysis, RBI compliance, and FC-GPR filing
- Resident Director services — appointment of a qualified Indian resident director who meets the 120-day requirement
- Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
- Tax and DTAA advisory — treaty benefit structuring, transfer pricing documentation, and annual compliance
- Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns
For a detailed walkthrough, see our case study: Australian Professional Services Firm Entering India.
Related Country Guides
Setting up from a different country? These guides cover similar territory:
- Register a Company in India from New Zealand
- Register a Company in India from United Kingdom
- Register a Company in India from Singapore
Get in Touch
Setting up an Indian company from Australia? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.
WhatsApp: +91 874 501 3644 | Email: hello@beaconfiling.com
Frequently Asked Questions
- ECTA in force since Dec 2022: 100% tariff-free for Indian exports to Australia from Jan 2026. Over 85% of Australian goods at preferential rates into India.
- CECA under negotiation: 11 rounds completed. Full upgrade covering services, investment, digital trade, critical minerals.
- DTAA (1991, amended 2013): Dividends 15%, Interest 15%, Royalties 10%/15%. No separate FTS article.
- No Press Note 3: Australia is not a border country -- automatic route FDI applies.
- Critical Minerals Partnership (2022): Joint ventures in lithium, rare earths, cobalt with institutional backing.
- BIT terminated 2017: Sunset clause protects pre-2017 investments until 2032. CECA investment chapter to replace.
- Apostille via DFAT: 5-10 business days in person, 2-4 weeks by mail.
Indian Embassy / Consulates
High Commission of India, Canberra (3-5 Moonah Place, Yarralumla, ACT 2600). Consulates in Sydney (265 Castlereagh Street), Melbourne (344 St. Kilda Road), Perth (12 St. Georges Terrace), Brisbane (301 Coronation Drive, Milton).
Explore More Country Guides
New Zealand
India and New Zealand just signed a free trade agreement in December 2025 — the first ever between the two countries. Nearly 300,000 Kiwi Indians are already bridging both economies. Here is how to set up your Indian entity before the competition catches on.
Read guide🇦🇷Argentina
Bilateral trade rebounded to $5.23 billion in 2024 after Argentina's drought-driven dip. India is Argentina's 5th largest trading partner. But there is no DTAA — and that changes your tax math. Here is the full picture.
Read guide🇦🇹Austria
India-Austria bilateral trade reached $2.98 billion in 2024. Over 150 Austrian companies already operate in India, from voestalpine steel to Andritz hydro. With a uniform 10% DTAA rate, the tax treaty is one of India's most favorable.
Read guide🇧🇩Bangladesh
Bangladesh is India's largest trading partner in South Asia at $13.5 billion in FY25. But Press Note 3 changes the rules. All Bangladeshi FDI into India needs government approval. Here is exactly how it works.
Read guide