When Does Your Company Need FIRB Approval?
A company qualifies as a foreign person under Australian foreign investment law if a single foreign person holds 20% or more of the company, or if multiple foreign persons together hold 40% or more. This includes indirect holdings through corporate chains and trusts. Australian-incorporated companies with foreign shareholders often discover they need FIRB approval when attempting to purchase property.
The rules extend beyond direct ownership. If your company is a trustee of a trust with foreign beneficiaries, or if foreign persons control voting power in the company, FIRB requirements apply. We analyse your corporate structure to determine your obligations before you commit to a purchase.
Different Rules for Different Property Types
Commercial property foreign investment applications require approval regardless of the property value. The Foreign Investment Review Board assesses whether the acquisition is contrary to the national interest. Most straightforward commercial acquisitions receive approval within 30 days.
Residential land acquisition by foreign corporations faces additional restrictions. Foreign companies generally cannot purchase established dwellings unless they plan to demolish and redevelop. New dwellings and vacant land for development are usually approved with conditions requiring construction within set timeframes.
Agricultural land acquisitions trigger screening thresholds based on cumulative holdings. If your company already owns agricultural land in Australia, previous acquisitions count toward the threshold for your new purchase.
The Application Process for Corporate Buyers
Your FIRB application must include comprehensive details about your company's ownership structure, the proposed acquisition, and how you intend to use the property. For corporate applicants, this means providing:
- Certificate of incorporation and company constitution
- Shareholder register showing all beneficial owners
- Organisational charts for complex structures
- Financial statements demonstrating capacity to complete the purchase
- Contract of sale or heads of agreement for the property
- Development plans if acquiring vacant land
We compile these documents, prepare the formal application, and calculate the applicable fees. Government fees for FIRB applications vary based on property value and type. We provide a complete breakdown of your FIRB approval cost before lodgement.
Timeframes and Conditions
Standard FIRB applications receive a decision within 30 days. Complex acquisitions or those requiring additional information may take longer. The Foreign Investment Review Board can impose conditions on approvals, such as development timeframes for vacant land or reporting requirements for significant acquisitions.
Conditional approvals require ongoing compliance. We advise on what conditions mean for your company and how to satisfy reporting obligations. Breaching conditions can result in penalties or forced disposal of the property.
Why Corporate Buyers Choose Fixed Fee Applications
Hourly billing creates uncertainty. You cannot budget accurately when you do not know how many hours your application will require. Our fixed fee FIRB application service eliminates this problem. You receive a quote covering the entire process from initial assessment through to decision. The fee covers document preparation, lodgement, responding to requests for additional information, and providing you with the final approval.
This approach works because we handle FIRB applications daily. We know how long each step takes and what complications might arise. That experience translates into predictable pricing for your company.
