AFSL (Australian Financial Service License) - Australia

An Australian Financial Services (AFS) license is a legal authorization for an individual or business to conduct financial services operations in Australia and is required for businesses that deal with, advise on, or manage financial products

From scratch

From EUR 40,000

Timeline

From 4 months

Ready made

From EUR 195,000

Quick facts

Regulator / authority

Australian Securities and Investments Commission (ASIC)

Coverage

Financial product advice, dealing in financial products, securities, derivatives, foreign exchange contracts, and portfolio management in Australia and outside of Australia

Best for

The best solution for businesses entering the Australian market: Investment and Wealth Management Firms, Brokerage and Trading Platforms, Fintech Investment Platforms, Managed Funds and Investment Schemes, Crypto and Digital Asset Platforms, and Custody and Financial Infrastructure Providers

Local presence

Required (Australian legal entity)

Substance level

High (it is required a legal entity within Australia, typically a private company (i.e., Pty Ltd.), to hold a valid Australian Business Number (ABN) or Australian Company Number (ACN), to have at least one Australia-resident director, and to have at least two responsible managers with relevant experience)

Banking friendliness

High

Who this is for

Best fit

Investment platforms
Financial advisers
Fund operators
Custody/trust services

Corporate finance or product dealers
Crypto Platforms Offering Financial Products
Wealth Management Firms
Stored-value facilities / e-wallets structured as financial products

What you can do (scope)

Provide financial product advice to clients
Deal in financial products
Make a market for a financial product
Operate a registered managed investment scheme
Provide custodial or depository services
Provide traditional trustee company services
Provide superannuation trustee services
Operate a corporate collective investment vehicle (CCIV)

Requirements overview

Company & presence

It is necessary to establish a legal entity in Australia with ASIC, such as a Pty Ltd company, with at least 1 resident director (the director must pass fit and proper assessments) and a valid ABN/ACN. A physical office is required, and you must demonstrate your presence in Australia. AFSL holders must appoint responsible managers who have relevant financial services experience and demonstrate competence in the licensed activities.

Key persons / governance

At least one Australia-resident director; there can be appointed foreign directors too. Directors and responsible managers must take a fit and proper person test. Responsible managers should each have 3–5 years of relevant experience.

Capital / safeguarding / bonds

Minimum Net Tangible Assets (NTA): 50,000 AUD.

AML/CTF baseline expectations

The baseline AML/CTF expectations for AFSL firms generally include: documented AML/CTF program, risk-based compliance framework, customer due diligence procedures, transaction monitoring systems, suspicious activity reporting, record keeping requirements, AML compliance officer, staff training and periodic independent review.

Reporting / audits

Where applicable, AFSL holders are required to submit regular reports to AUSTRAC and ASIC: Suspicious Matter Reports (SMRs), Threshold Transaction Reports (TTRs), and International Funds Transfer Instructions (IFTIs) are submitted when there are reasonable suspicions of unlawful activity. Periodic internal audits and evaluations of their AML/CTF controls should be conducted by AFSL holders to guarantee that they are still functional and in compliance with regulatory expectations and risk assessments. Annual Financial Statements (balance sheet, profit and loss statement, cash flow statement, notes to the financial statements). Financial Resources Compliance (RG166) (Net Tangible Assets (NTA) compliance, liquidity requirements, ability to meet operating expenses). Compliance Reporting to ASIC (significant compliance breaches occur, financial services laws are violated, investigations into misconduct start). AFSL holders must maintain records for at least 7 years, including client records, transaction records, compliance reports and financial records.

Process (end-to-end steps)

Step 1: Structuring & Regulatory Pre-Assessment

Defining the scope of financial services activities (financial product advice, dealing, market making, custody, managed investments, etc.). Determining financial products involved (securities, derivatives, FX contracts). Identifying target clients (retail vs wholesale investors). Assessing regulatory risk profile and licensing category. Confirming financial resources and Net Tangible Assets (NTA) requirements. Identifying shareholders, directors, responsible managers (RMs), and compliance officer.

Step 2: Incorporation of the AFSL Licensing Entity

Incorporation of an Australian proprietary limited company (Pty Ltd). Registration with ASIC and obtaining an Australian Company Number (ACN). Appointment of directors (usually at least one Australian resident director). Appointment of Responsible Managers (typically two individuals with relevant qualifications and experience). Establishment of a registered office and principal place of business in Australia.

Step 3: Compliance Framework & Documentation Preparation

Preparation of regulatory documentation demonstrating the company's business plan / business description, compliance manual, risk management framework, conflicts of interest policy, compliance monitoring program, training and competency policy, client disclosure procedures (FSG, PDS, SOA where applicable), complaints handling and dispute resolution policy, financial resources and liquidity management framework, AML/CTF compliance framework (if financial transactions are involved).

Step 4: Capitalisation & Operational Readiness

Meeting Net Tangible Assets (NTA) financial thresholds. Preparing financial statements and projections. Obtaining professional indemnity insurance. Establishing internal governance and compliance oversight. Joining the Australian Financial Complaints Authority (AFCA) if retail clients are involved. Ensuring staff training and competency frameworks are in place.

Step 5: AFSL Application Submission & ASIC Review

The application package typically includes: AFSL application forms, corporate documentation, Responsible Manager proof of competence, fit & proper assessments, business model description, compliance and risk management documentation, financial resource calculations and projections.

Step 6: Licence Approval & Post-Licensing Implementation

ASIC issues the Australian Financial Services Licence. The licence holder receives an AFSL number and authorised activities. Post-approval steps typically include: finalizing operational systems and compliance monitoring, activating financial services operations, implementing ongoing reporting and compliance frameworks, maintaining financial resource and audit requirements, ongoing supervision by ASIC and compliance with reporting obligations.

What's included in our support

Registration of the Pty Ltd. in Australia
Liaising with the regulator ASIC during the processing of the application
Corporate documents (certificate of registration of a company, application for director registration)
Preparation of business documentation
Preparation of AML/CTF policies and other compliance framework
Assistance with ASIC Form FS01
Preparation of Responsible Manager personal statements
Preparation of fit and proper declarations
Preparation of financial resources statement

FAQ

With an Australian Financial Services Licence (AFSL) a firm may lawfully offer financial services in Australia. These services include giving financial advice, selling financial goods, keeping money safe, or running investment programs.

Any person or company carrying on a financial services business in Australia—especially where services are provided to retail or wholesale clients—generally needs an AFSL, unless a specific exemption applies.

Depending on the permissions given, AFSLs can cover things such as providing financial product advice, dealing, market making, running managed investment schemes, custodial services, processing claims, and crowdfunding.

ASIC doesn't require a dedicated physical office, but actual operational substance, such as Australian-based Responsible Managers, governance, and good oversight is necessary.

Responsible Managers are key individuals named in the application who possess the skills, experience, and competence needed to handle the financial services and products that the license covers.

The duration of the process is typically 4–6 months, and it is dependent on the complexity of the business, the quality of documentation, and whether or not ASIC issues additional clarification requests.

Yes. Foreign businesses can apply directly or rely on restricted exemptions (usually wholesale-only). Local substance and an Australian entity will be expected in the majority of cases.

No, but it significantly improves credibility. Banks continue to conduct their own anti-money laundering (AML) and risk assessments just before opening accounts or offering payment services.