The company setup process
To set up a company in Australia, first decide whether a company is the right structure. You then need to settle the directors, shareholders, company name, share structure, addresses and internal rules. Each director needs a director ID before registration. You can usually register through the Australian Government Business Registration Service, with ASIC processing the application and issuing the company's ACN and certificate of registration.
Check that a company is the right structure
A company is a separate legal entity. It has its own registration, records, reporting obligations and ongoing costs. That can be useful when a business needs a distinct legal structure, multiple owners or clearer separation from the people behind it. It also brings more administration than operating as a sole trader.
The choice can affect control, liability, tax and the way money is taken from the business. Consider professional legal and tax advice before registering if the structure is not straightforward.
Compare a company and sole trader structure, or read ASIC's official overview of common business structures.
Decide who will own the company
The owners of a company are its members or shareholders. Decide who will receive shares, how many shares each person will hold, which class of shares will be used and what will be paid for them.
For a proprietary company, the registration application includes each member's name and residential address. ASIC also requires the company to keep written consent from each proposed member confirming the number and class of shares they agree to take.
Use the company registration requirements checklist to gather the details before opening the application.
Choose directors and obtain director IDs
Decide who will be responsible for managing the company. A proprietary company must have at least one director who ordinarily resides in Australia. A company secretary is optional for a proprietary company.
Every proposed director must apply for their own director ID before the company is registered. The company must also keep written and signed consent from each director and secretary before appointment.
Read our director ID guide and use the official Australian Business Registry Services website to apply.
Choose the company name
You can register an available company name or use the ACN as the name, followed by the company's legal status. A proprietary company limited by shares normally uses “Pty Ltd”. The name must satisfy ASIC's rules and cannot be identical to an existing registered name.
Registering a company does not automatically give you ownership of a matching trade mark or domain name. If the company will trade under a different name, a separate business name registration may also be required.
Choose the company addresses
ASIC requires a registered office address and a principal place of business address. The company must also nominate an Australian state or territory of registration, even if it operates nationally.
A registered office is the address where official correspondence and documents can be sent. It cannot be a post office box. If the company does not occupy the address, obtain the occupier's written consent and keep it with the company records.
Choose the company's internal rules
Every company needs rules for its internal management. It can rely on the replaceable rules in the Corporations Act 2001, adopt its own constitution, or use a combination of both.
A constitution may be appropriate when the owners want tailored rules. A one person proprietary company has specific statutory rules, so do not assume that every standard document will suit every company.
Register the company
Most new companies can be registered through the Australian Government Business Registration Service. The service collects the application and ASIC processes the company registration.
ASIC states that the current fee for most company registrations is $636, although the amount depends on the company type and fees can change. Check the current fee immediately before lodging.
Receive the ACN and arrange an ABN
Once the company is registered, the confirmation includes its nine digit Australian Company Number and certificate of registration. ASIC also sends the corporate key to the registered office. Keep these records securely.
The company can also apply for an eleven digit Australian Business Number and any tax registrations it needs. The Business Registration Service can combine several business and tax registrations in one process.
Meet the ongoing company obligations
Registration is the beginning of the company's compliance work. The company and its officeholders need to keep details current, maintain company and financial records, keep the share register accurate, pay relevant fees and complete the annual review process.
Company details and officeholder changes often have notification deadlines. Directors also have legal duties and can face consequences if the company is not managed properly. Use ASIC Assist's Compliance Dashboard to keep due dates, questions and documents together.
Check the current government guidance
Company setup questions
How do I set up a company in Australia?
Decide that a company is the right structure, choose the directors and shareholders, obtain director IDs, select a company name, set the share structure and addresses, choose governance rules, then register through the Australian Government Business Registration Service. ASIC processes the registration and issues the ACN and certificate of registration.
How much does it cost to register a company in Australia?
ASIC states that the current registration fee for most companies is $636, although the fee depends on the company type and can change. Check ASIC's current fee page before lodging an application.
Do I need a director ID before registering a company?
Yes. ASIC says proposed directors must apply for their director ID before the company is registered. A director ID is free and is issued by Australian Business Registry Services.
Is an ACN the same as an ABN?
No. ASIC issues a nine digit ACN when a company is registered. An ABN is an eleven digit identifier used for dealings with government and other businesses. A registered company can apply for an ABN.
Does registering a company also register a business name?
Not necessarily. The company name and business name registers are separate. If the company trades under a name different from its registered company name, it may also need to register that business name.
What happens after the company is registered?
The company must keep its details and records up to date, maintain a share register, meet officeholder duties, pay relevant fees and complete the annual review process. Tax and other registrations may also be required.