Answer:
You can operate an Australian business with a business partner that lives overseas. However, there are a few implications to be aware of, depending on the business structure that you use:
| Australian Business Number | A partner may live overseas. |
| Company | Directors may live overseas, as long as there is at least one company director that ordinarily lives in Australia. |
| Discretionary Trust | If the business trust holds property (i.e. land or buildings), and the business partner who is not a resident is a beneficiary of the trust, the trust can be considered a ‘foreign person’. Therefore, it will be subject to duty or land tax surcharge (or both). |
Business partners that are not Australian residents will not be taxed on the partnership’s net income obtained from overseas sources.
