How to Set Up a Company in Australia - FREE Step-by-Step Guide

Why Set Up a Company?

Setting up a company provides multiple advantages, including:

­   Limited liability protection – separates personal and business finances.

­   Greater credibility – essential for securing funding and business contracts.

­   Better tax benefits – structured tax planning can reduce liabilities.

­   Access to government grants and funding – some opportunities are only available to registered companies.

If you're currently operating as a sole trader, incorporating a Pty Ltd company may be the next step for growth and protection.

Step-by-Step Guide to Setting Up a Company in Australia

1.      Choose a Business Structure

The most common structures include:

­   Proprietary Limited (Pty Ltd) Company – The best option for most businesses due to limited liability protection.

­   Public Company (Ltd) – Suitable for larger businesses planning to raise capital publicly.

­   Partnership – Suitable for businesses with multiple owners.

­   Trust – Often used for tax efficiency and asset protection.

For most entrepreneurs, a Pty Ltd company is the best choice.

2. Select a Company Name

Your company name must be unique. Check availability via ASIC:

 [ASIC Business Name Check]

Your company will need a legal suffix (e.g., Pty Ltd, Pty Limited).

3. Appoint Directors and Shareholders

At least one director must reside in Australia.

Decide on your share structure and shareholder agreements.

Setting up your own business is exciting. But it can be challenging if you're not prepared. This Guide to starting a business by business.gov.au takes you through the main steps of starting a business and helps you understand what's ahead.  

4. Register Your Company with ASIC

­   Register online [Business Registration Service]

­   Select your registrations  

­   Pay the registration fee. [$597 for a Standard Pty Ltd companies, Superannuation Trustee Companies, Home Unit Companies, Not-for-profit Pty Ltd Companies and Public Companies. $491 for companies Limited by Guarantee.]

5. Obtain an Australian Business Number (ABN)

Required for tax and business identification.

 Apply for an ABN Apply for an ABN

6. Set Up Banking and Tax Compliance

­   Open a business bank account.

­   Register for GST if turnover exceeds $75,000.

­   Keep accurate financial records for ASIC and ATO compliance.

Essential Legal Documents for Your Company

Starting a company requires key legal documents, including:

📌 Company Constitution – Governs how your company operates.

📌 Consent to Act as Director – Required for ASIC compliance.

📌 Shareholders’ Agreement – Defines ownership rights and responsibilities.

📌 Directors’ Resolutions – For major company decisions.

📌 Meeting Minutes – Required to document key business decisions.

For a full checklist and detailed explanations, download our FREE Guide.