Need a resident director for your Australian business operations?
As part of our speciality helping overseas companies set up in Australia, International Accounting Solutions offers Australian Resident Director Services, for when businesses are unable to provide eligible candidates themselves.
Finding an eligible Resident Director can often be an obstacle for overseas companies wanting to establish an Australian subsidiary or branch office.
This cost-effective and flexible solution overcomes that hurdle, ensuring your company can meet its regulatory obligations.
Our Resident Director service includes:
- The provision of an accredited nominee to act as Australian Resident Director for your company.
- The Resident Director appointed will be in name only and will not have any business responsibilities.
- Liaising with regulatory authorities and financial institutions.
- Managing your annual compliance obligations.
Why choose International Accounting Solutions as your Australian Resident Directors?
- Knowledgeable in regulatory and compliance requirements, with over 20 years’ experience providing resident director services here in Australia.
- Our nominee directors are members of the Australian Institute of Company Directors, Chartered Accountants Australia & New Zealand, and the Tax Institute. Background checks, as well as credit and police checks, have also been carried out.
- Trusted as Resident Directors for many Australian subsidiary companies with head offices in countries such as the UK, USA, Canada, Europe & China.
- We add value to your business, not just fill a legal requirement, and can provide additional services, such as a Virtual CFO or accounting and taxation advice.
- Access to a network of invaluable business contacts.
- The maintenance of privacy and confidentiality at all times.
- A professional name to represent your company.
Resident Director FAQ
What is a resident or nominee director?
One of the requirements of the Corporations Act 2001 is that all companies registered in Australia must have a local Australian resident appointed as a director of the company at all times.
Private, or proprietary companies (Pty Ltd) must have at least one director. A public company must have at a minimum, three directors, at least two of whom must ordinarily reside in Australia.
What are the role’s responsibilities?
Aside from the ordinary responsibility of an Australian director (acting in the best interests of the company, avoiding conflicts of business and personal interests and avoiding trading while being insolvent), a resident or nominee director is also responsible for ensuring the company:
- has a current registered office– A company must have a current registered office in Australia and must inform ASIC (Australian Securities and Investments Commission) of its location.
- has a principal place of business– A company that operates a business from a location different from its registered office must inform ASIC.
- discloses personal details of directors– A company must inform ASIC of the name, date of birth and current residential address of directors.
- keeps financial records– A company must keep up-to-date financial records that correctly record and explain transactions and financial position. Larger companies have additional obligations to lodge financial reports with ASIC.
- notifies ASIC of key changes– Whenever there are certain key changes to the company’s details (e.g. principal place of business, directors), ASIC must be notified.
- pays relevant fees to ASIC– For example, the annual review fee.
- checks annual statements– A company’s details on the ASIC register must be accurate and up-to-date.
Who is eligible to be a director of an Australian company?
To be a company director in Australia, you must:
- be at least 18 years of age
- ordinarily, reside in Australia
- consent to taking on the role and responsibilities of a director.
Can a non-resident be a director of an Australian company?
Yes, someone who is not ordinarily resident in Australia can be appointed as a director of an Australian company, provided the company has first nominated a Resident Director. The Resident Director must be one who resides in Australia and is either a permanent resident or Australian citizen.
Does the Resident Director run the company?
A resident director can be appointed in name only and does not have to be given an active role in operating and managing the business. Their role is to liaise with regulatory authorities and financial institutions and manage your company’s regulatory compliance.
Can the managing director be appointed to the role?
Yes, as long as they meet the criteria set out under ASIC law.
We do advise, however, the person appointed to be your resident director has compliance and Australian tax law experience. This person must also have the time to adhere to the role. If your managing director does not have the skills nor the time to comply, we would recommend appointing someone else.
Do I need to appoint a company secretary as well as a resident director?
No. There is a common misconception an Australian proprietary company needs both a resident director and a company secretary. This is not true.
When a company appoints an Australian resident director they have the choice of whether to appoint a company secretary or not. The company secretary must reside in Australia.
If your company does not appoint a company secretary, the role and responsibility of the company secretary must be assigned to another person. In most cases, these tasks are undertaken by the resident director.
How to appoint an Australian Resident Director?
Given the role’s responsibilities, choosing a Resident Director is an important and even challenging decision.
Because of the inherent risks involved, thorough checks need to be made on both sides, and we always advise proceeding with caution before appointing a nominee. International Accounting Solutions sets out an Australian Resident Director agreement detailing the arrangement and essential legal protection.
From you, we will need:
- Proof of identities,
- Incorporation if already an established entity,
- Letters of reference,
- Proof of insurance held in place,
- Deed of Indemnity
Our team here at International Accounting Solutions can assist you with this documentation.