- Starting a company in Australia is a structured, multi-step process; market research, structure choice, and director appointments all come before the $611 ASIC registration fee. Getting the order right from day one avoids costly restructuring later.
- A company pays corporate tax at 25% for base rate entities or 30% for larger companies, offers limited liability, and exists as a separate legal entity from its owners. That separation is the point but it comes with ongoing ASIC reviews, director duties, and compliance obligations that don’t stop after incorporation.
- The most commonly missed step when starting a company in Australia is the Director ID; a free 15-digit identifier every director must obtain via ABRS before appointment. Without it, your ASIC application cannot proceed.
To start a company in Australia, you need to register a Pty Ltd with ASIC (costing $611), appoint at least one Australian resident director, and apply for an ABN. The process typically takes 1–2 business days for company registration, plus additional time for tax registrations.
Setting up a company in Australia is exciting, but the process can quickly become confusing when legal requirements, government registrations, and compliance obligations come into play.
In this guide, we’ll walk you through:
- Deciding whether a company structure is right for you
- Choosing directors and shareholders
- ASIC registration
- What to do immediately after setup
By the end, you’ll have a clear understanding of the company registration process and the confidence to set up your business correctly from day one.
Choose your structure: Confirm a Pty Ltd is right for your situation
Appoint directors: At least 1 Australian resident, Director ID required before appointment
Register with ASIC: $611 fee, ACN issued within 1–2 business days
Set up tax accounts: ABN, GST if turnover exceeds $75,000, PAYG if hiring
Stay compliant: $329 annual ASIC review fee, 12% Super Guarantee on staff wages
What are the steps to start a company in Australia?
Before we dive in, here’s a simple roadmap on how to start a company in Australia in ten practical steps, from testing your idea to getting fully registered and ready to trade.
Step 1: Decide if a company structure is the right way to register a business in Australia
Before registering anything, it is important to confirm whether a company is the right structure for your business. In Australia, you can operate as a sole trader, partnership, trust, or company, each with different legal, tax, and compliance implications.
- A company is usually the right fit when you want to separate the business from the individual.
- Once registered, a company exists as its own legal entity with its own property, rights, and obligations, separate from its owners and directors.
In Australia, most small businesses choose a company set up as a proprietary company limited by shares (Pty Ltd) because it supports growth while limiting member liability.
But a company also comes with more compliance than other structures:
- ASIC annual reviews,
- record-keeping requirements, and
- director responsibilities.
so it is worth choosing deliberately.
|
Structure |
Separate legal entity |
Personal liability |
How tax generally works |
Admin & compliance load |
Best for |
|
Sole trader |
No |
Highest |
Income taxed at individual rates |
Low |
Testing an idea, simple operations |
|
Partnership |
No (partners personally involved) |
High (can be shared, but still personal) |
Partners taxed individually on their share |
Medium |
Two founders starting small |
|
Trust |
Usually yes (via trustee), but depends on setup |
Varies (often via corporate trustee) |
Tax outcomes depend on trust distributions; losses generally stay in the trust |
Medium–High |
Asset protection / family wealth planning |
|
Company (Pty Ltd) |
Yes |
Limited (typically to unpaid share amounts) |
Company pays company tax: 30% unless eligible for 25% as a “base rate entity” |
High |
Scaling, hiring, raising funds, credibility |
For most founders planning to grow, hire, or raise capital, a Pty Ltd company is the right starting point, limited liability, taxed at 25% for base rate entities (turnover under $50 million) or 30% for larger companies, and legally separate from its owners from day one. If you are still testing an idea or operating simply, a sole trader setup avoids the compliance overhead until you are ready to scale.
For a detailed breakdown of what a Pty Ltd structure involves, how liability works, and when it is the right choice, see our complete guide to Pty Ltd company in Australia.
Read more: Sole Trader Business Structure vs Company: Which Is Right for You in Australia?
Step 2: Choose and check your company name before registering in Australia
Once you’ve decided on a company structure, the next step is choosing a company name. Your company name is the legal name registered with ASIC and must be unique and compliant with Australian naming rules.
Before applying, make sure your chosen name:
- Is available on the ASIC register
- Is not misleading, offensive, or restricted without approval
- Uses the correct legal ending (e.g. Pty Ltd)
If you plan to trade under a different name, you’ll also need to register a business name separately. Alternatively, you can register your company using its ACN as the name and add a business name later.
Do you already have a company name in mind?
Run a quick check with Sleek’s free Business Name Availability tool and see if it’s ready to register.
Step 3: Set your company directors, shareholders and share structure
Before you can register your company with ASIC, you must decide on the key people and how ownership will be divided. These are formal legal requirements under Australian company law and must be ready when you lodge your application.
|
Category |
Minimum requirements |
Notes |
|
Directors |
At least 1 director for a proprietary company |
Must ordinarily reside in Australia; must have a Director ID before appointment. |
|
Director ID |
Every director must have a Director Identification Number |
This is a unique 15-digit ID you apply for via ABRS before becoming a director. |
|
Shareholders (members) |
At least 1 shareholder |
The same person can be both director and shareholder. |
|
Share structure |
At least one class of shares must be issued |
Details of issued shares and members are required on the company’s register. |
|
Company secretary |
Optional for proprietary companies |
Only required for public companies. |
The single most commonly missed requirement is the Director ID, a free 15-digit identifier every director must obtain via ABRS before they can be appointed. Without it your ASIC registration cannot proceed. A proprietary company needs at least one director ordinarily residing in Australia and at least one shareholder, both roles can be held by the same person.
What you need to decide
- Who will be the director(s)?
Each director must be at least 18 years old and cannot be disqualified under the Corporations Act. - Director ID compliance:
Every director must apply for a Director ID before they can be appointed to the company. - Who will be the shareholder(s)?
A shareholder (or member) owns part of the company through shares. This can be a person or another company. - Share structure:
Decide how many shares you will issue and how ownership will be divided. This affects control, voting rights, and profit entitlements. You must record this in your own share register and tell ASIC about it.
Document ownership and founder rules in a shareholders’ agreement
Once you’ve decided who the directors and shareholders are, it’s worth putting the ownership and founder rules in writing, even if it’s a small, closely held company.
A shareholders’ agreement (or founders’ agreement) can help clarify:
- Decision-making: How big decisions are made (for example, by board resolution or unanimous shareholder approval).
- Roles and responsibilities: Who is expected to handle which areas of the business (operations, finance, sales, product, etc.).
- Equity and vesting: How shares are allocated, and what happens if a founder leaves early.
- Exit and share transfers: What happens if someone wants to sell their shares, bring in a new investor, or exit the business.
- Disputes: How disagreements will be resolved without paralysing the company.
This kind of document doesn’t replace the company constitution or the Corporations Act, but it sits alongside them and reduces misunderstandings between founders as the business grows.
You don’t have to cover every scenario on day one, but agreeing on the basics early usually saves cost and friction later.
Missing Director ID requirements, registering under the wrong structure, or forgetting tax registrations are more common than you’d think and all avoidable. Getting professional support at setup costs far less than fixing mistakes later.
Step 4: Register your company with ASIC (How to incorporate a company)
Once your structure, name, directors, shareholders, and share setup are decided, you’re ready to register the company with the Australian Securities and Investments Commission (ASIC). This is the step that officially creates your company as a legal entity.
You can register online directly with ASIC or through a registered agent. You’ll need to provide:
- Proposed company name (or use the ACN as the name)
- Registered office address in Australia (not a PO Box)
- Principal place of business
- Director details, including Director ID
- Shareholder details and their shareholdings
- Share structure (number and class of shares)
- Whether you’ll use replaceable rules or a company constitution
Once ASIC approves the application, you’ll receive:
- An Australian Company Number (ACN)
- A Certificate of Registration
From that point, the company is live and must meet ongoing ASIC obligations, including keeping details up to date and paying the annual review fee.
Founders who rush straight to ASIC registration without working through the earlier stages often end up redoing registrations, restructuring ownership, or fixing compliance issues later. The right order matters more than the speed.
Step 5: Set up your company tax and business registrations in Australia
After your company is registered with ASIC, you’ll need to complete the key tax and business registrations so it can legally operate.
For most Australian companies, this usually includes:
|
Registration |
When do you need it |
|
All companies carrying on an enterprise in Australia need an ABN. |
|
|
Every company needs its own TFN for income tax and other ATO obligations. |
|
|
If projected GST turnover is $75,000 or more (or $150,000+ for non-profits), or you opt in voluntarily. |
|
|
If you have employees, pay company directors, or withhold from certain contractors/others without an ABN |
|
|
If you trade under a name different from the company’s exact legal name (e.g. “Bright Labs” instead of “Bright Labs Pty Ltd”). |
Most of these registrations can be lodged in one go through the Business Registration Service once you have your ACN. The two most time-sensitive are GST, mandatory once projected turnover reaches $75,000 and PAYG withholding, which must be set up before your first payroll. ABN and TFN applications are free and typically processed within 1–2 business days.
Step 6: Understand your ongoing company and ASIC compliance obligations
Once your company is registered and your tax accounts are set up, your focus shifts to staying compliant. Incorporation is not a one-off task, there are ongoing legal and tax obligations you need to manage from day one.
Incorporation isn’t a one-off task, there are ongoing legal and tax obligations you need to manage.
These obligations apply whether you register a business directly as a company from day one or move into a company structure later.
Core ongoing obligations for Australian companies
|
Area |
What you must do |
|
ASIC annual review |
Pay the annual review fee, confirm company details, and pass a yearly solvency resolution. |
|
Keep details up to date |
Notify ASIC when directors, addresses, share structure, or company details change. |
|
Maintain company registers |
Keep accurate records of directors, shareholders, shares issued, and key decisions (e.g. resolutions, minutes). |
|
Financial records |
Maintain financial records that correctly explain the company’s transactions and financial position. |
|
Tax and reporting |
Lodge company income tax returns, BAS/IAS where required, and meet PAYG and super obligations if you have employees. |
|
Director duties |
Directors must act in the company’s best interests, avoid improper use of their position, and ensure the company can meet its debts. |
The most time-sensitive obligation is the ASIC annual review, $329 fee, due on your company’s registration anniversary. Missing it triggers late fees and can lead to deregistration. If you have employees, Super Guarantee contributions of 12% must be paid quarterly by the 28th day after each quarter ends, late payments attract the Superannuation Guarantee Charge and are not tax-deductible.
|
Cost item |
Amount |
|
ASIC company registration fee |
$611 |
|
ASIC annual review fee |
$329 per year |
|
Director ID |
Free |
|
ABN registration |
Free |
|
TFN registration |
Free |
|
Business name registration (1 year) |
$44 |
|
Business name registration (3 years) |
$102 |
|
Professional setup support |
From $180 with Sleek |
If you want a more detailed breakdown of setup and compliance costs, read our guide on Company Registration Costs in Australia
Step 7: Open a company bank account and set up your records
With your company registered and tax accounts set up, the next step is to get your financial and operational systems in place.
Open a dedicated company bank account
Set up a separate bank account in the company’s name. This helps you:
- Keep company money completely separate from personal funds
- Make it easier to track income and expenses
- Show clear records if the ATO or a lender ever reviews your books
Most banks will ask for your ACN, ABN, company details, and ID for officeholders.
Read more: Best Business Bank Accounts in Australia 2026
Set up your accounting and record-keeping
From day one, put basic systems in place to track money and decisions, such as:
- Cloud accounting software to send invoices, track expenses, and reconcile bank transactions
- A simple chart of accounts tailored to how your business earns and spends
- Secure storage for key company records: director and shareholder registers, minutes, resolutions, contracts, and tax records
Good systems early on save you time, reduce compliance risk, and make it easier to work with your accountant.
Step 8: Check licences, insurance and operational readiness before you start trading
Before you start trading, it’s important to make sure your company is actually ready to operate, not just registered on paper.
Licences and permits
Depending on your industry and location, you may need specific licences, permits, or registrations. Examples include:
- Food business registrations
- Building or trade licences
- Professional registrations or accreditations
- Local council permits (for signage, outdoor seating, or certain retail activities)
A quick check with your state or territory business regulator and local council can help confirm what applies to you.
Insurance
Consider whether your company needs:
- Public liability insurance: to help protect against claims arising from injury or property damage linked to your business activities
- Professional indemnity insurance: if you provide advice or professional services
- Product liability insurance: if you manufacture or sell products
- Workers compensation: if you employ staff (this is mandatory under state and territory laws)
The right mix will depend on what your company does and its risk profile, so it’s worth getting tailored advice.
Operational readiness
Finally, sense-check whether you’re operationally ready to go live. For example:
- Do you have terms and conditions or client contracts in place?
- Are your payment methods, invoicing, and refunds set up and clear?
- Do you have basic privacy and data handling practices if you collect customer information?
Working through these points helps ensure that once all the registrations are done, your company can start trading smoothly and with fewer surprises.
What are the common mistakes when you start a company in Australia?
When you’re focused on how to start a company in Australia, it’s easy to miss small details that turn into big headaches later. Here are some of the most common mistakes new founders make:
- Choosing a company structure too early (or for the wrong reasons)
Locking into a company when a simple sole trader setup would do or vice versa can lead to unnecessary cost, admin, or later restructuring. - Not getting a Director ID before appointment
Every director needs a valid Director ID before they’re appointed. Skipping this step can delay your ASIC registration. - Leaving ownership and founder rules vague
Not having a basic shareholders’ or founders’ agreement can cause friction later around roles, equity, exits, or bringing in new investors. - Mixing personal and company finances
Using personal bank accounts for company income and expenses makes record-keeping messy and can weaken the separation between you and the company. - Missing key tax registrations or starting them too late
Forgetting to register for GST, PAYG withholding, or a company TFN when required can lead to penalties or cash flow issues. - Treating compliance as a one-off task
Ignoring ASIC annual reviews, not updating company details, or skipping proper records and minutes makes it harder to stay compliant and raise capital later.
Missing Director ID requirements, registering under the wrong structure, or forgetting tax registrations are more common than you'd think and all avoidable. Getting professional support at setup costs far less than fixing mistakes later.
How Sleek can help you start a company in Australia?
Sleek’s company registration services in Australia handle the paperwork, ASIC lodgements, and ongoing compliance so you can focus on growing your business, not admin.
- Fast, compliant setup: We manage ASIC company registration plus ABN, TFN, GST and PAYG so you’re business-ready without delays.
- Expert guidance: Get tailored advice on constitutions, shareholders, and tax-effective structuring for your situation.
- All-in-one support: From incorporation to accounting, bookkeeping, payroll, and compliance, everything sits under one roof.
- Transparent pricing: Fixed-fee packages with clear inclusions and no hidden surprises.
- Ongoing compliance: Annual reviews, reminders, and ASIC updates handled for you so you stay on top of your obligations.
- Support for overseas founders: We also help non-residents set up and manage Australian companies with full compliance support from day one.
Ready to register your company in Australia? Talk to Sleek and get your setup, accounting, and compliance sorted in one go.
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Frequently Asked Questions
Can I start as a sole trader and incorporate a company in Australia later?
Yes. Many Australian founders start as sole traders and incorporate later once they have revenue, partners, or higher risk. When you switch:
- The company becomes a separate legal entity with its own ABN, TFN, bank account, and obligations
- You may need to transfer assets, contracts, and licences into the company’s name
- The company pays corporate tax at 25% (base rate entities) or 30% on its profits, you pay personal tax on any salary or dividends you receive
- Your sole trader ABN should be cancelled if that structure is no longer used
Because switching can trigger CGT or stamp duty obligations, timing the transition with an accountant is essential especially if assets or contracts are being transferred.
Can a non-resident register a company in Australia?
Yes, but the company must have at least one director who ordinarily resides in Australia.
A non-resident can be a director or shareholder, but cannot be the sole director.
If you don’t have an Australian resident director, Sleek’s resident director service covers this requirement while you establish your Australian presence.
How long does it take to incorporate a company in Australia once I’m ready?
If all details are ready, company name, directors with valid Director IDs, shareholders, addresses, and share structure, online ASIC registration typically takes 1–2 business days, often within minutes for straightforward applications. The $611 ASIC fee is payable at lodgement. Delays most commonly come from missing Director IDs, unclear ownership splits, or a company name that fails ASIC’s availability check.
