What is the local resident director requirement?
For all private companies registered in Australia, ASIC (Australian Securities and Investments Commission) requires that a local Australian resident be appointed as a director of the company at all times. This regulation is designed to help ensure that the company remains compliant with its regulatory obligations.
The director residency rule can be a major hurdle for overseas businesses wishing to establish a subsidiary or other business presence in Australia. ABNAustralia.com.au has designed a cost-effective and seamless solution, referred to as a ‘Nominee Director’. Refer to the Corporations Act, ASIC and the ATO (Australian Taxation Office) for more information on the applicable regulations and requirements.