Registering a company is one of the most significant decisions a business owner can make. A proprietary limited company (Pty Ltd) is the most common business structure in Australia, offering limited liability protection, a separate legal identity, and a credible platform for growth. But the registration process involves several sequential steps – from choosing a company name to obtaining the right tax registrations – and each step needs to be completed correctly to avoid delays or compliance problems down the line.
This guide walks through every stage of registering a company in Australia in 2026, including what ASIC requires, how the Australian Business Register works, and what tax and compliance obligations take effect the moment the company is incorporated.
Before committing to a company structure, it is worth understanding how it compares to other business structures – including sole trader, partnership, and trust arrangements – in terms of tax, liability, and ongoing compliance obligations. A detailed breakdown of business structures and their tax implications in Australia provides a useful foundation before proceeding with registration.
Step 1: Choose a Company Name
The company name is the first decision to make, and it must comply with specific rules set by the Australian Securities and Investments Commission (ASIC). The name must:
- Not be identical or deceptively similar to an existing registered company or business name
- Not contain restricted or prohibited words without approval (such as ‘Bank’, ‘Government’, ‘University’, or ‘Royal’)
- Not be misleading or offensive
- End with ‘Proprietary Limited’ or ‘Pty Ltd’ for a proprietary company
Company names can be checked through ASIC’s online name availability search tool before lodging an application. Note that reserving a company name is possible for up to two months if the registration is not yet ready to proceed. Registering a company name through ASIC is separate from registering a business name – a company name is part of the company’s legal identity. In contrast, a business name is a trading name used alongside or in place of the legal name.
Step 2: Determine the Company Structure and Officeholders
Before lodging a registration application, the following structural decisions must be made:
Decision | Details |
Company type | Most businesses register as a proprietary limited company (Pty Ltd). Public companies have different requirements and are less common among small- to medium-sized businesses. |
Directors | At least one director who is ordinarily resident in Australia is required. Directors must be 18 or older and not disqualified from managing companies. |
Shareholders / Members | At least one shareholder is required. A proprietary company can have up to 50 non-employee shareholders. Shareholders may be individuals, organisations, or other legal entities. |
Company secretary | A proprietary company is no longer required to have a company secretary, though many choose to appoint one for compliance management. |
Registered office | A physical Australian street address is required; PO Box addresses are not accepted. This is the official address for ASIC correspondence. |
Principal place of business | The main location where the company conducts business may be the same as the registered office or different. |
Step 3: Register the Company with ASIC
Company registration in Australia is handled by the Australian Securities and Investments Commission (ASIC). Registration can be completed online through ASIC Connect or through a registered agent such as an accountant or solicitor.
What You Need to Complete the ASIC Application
- The proposed company name
- The registered office address and principal place of business address
- Full details of each director and secretary (name, date of birth, residential address, and consent to act)
- Full details of each shareholder (name, address, and the number and class of shares to be issued)
- The share structure (number of shares, class of shares, and whether shares are fully paid)
- Consent from all officeholders and shareholders to be included in the application
Registration Fees
ASIC charges a fee for company registration. For FY2025-26, the standard fee for registering a proprietary company is $597. This fee is reviewed annually and may change for FY2026-27. The fee is payable at the time of lodgement and is not refundable if the application is rejected.
What Happens After ASIC Registration
Once the application is approved, ASIC issues:
- An Australian Company Number (ACN) – a unique nine-digit identifier for the company
- A certificate of registration verifying the company’s legal existence.
The ACN must appear on all public documents, invoices, and correspondence. The company also receives an entry in ASIC’s public register, which is searchable by anyone. From the date of registration, the company has a legal existence separate from its directors and shareholders.
ASIC also requires that the company be governed by a constitution or, if no constitution is adopted, by the replaceable rules set out in the Corporations Act 2001. Most small companies either adopt a simple constitution or rely on the replaceable rules, which cover default governance arrangements, including director powers, meeting procedures, and share transfers.
Step 4: Register for an Australian Business Number (ABN)
An ACN identifies the company with ASIC, but an ABN identifies the company for tax and business purposes. An ABN is required to:
- Invoice customers and suppliers without having tax withheld under PAYG
- Register for GST
- Register a business name with ASIC
- Interact with other government agencies and programs
ABN applications are lodged through the Australian Business Register (ABR) at abr.gov.au. The application is free of charge and can be completed online. An ABN is generally issued within 5 business days for straightforward applications, though complex structures or applications requiring additional review may take longer.
A company can apply for its ABN at the same time as registering with ASIC if using an online company registration service that integrates both applications. Otherwise, the ABN application is lodged separately after the ACN has been issued.
Step 5: Register for Tax Obligations
Once the company has its ACN and ABN, the next step is to register for the relevant tax obligations with the ATO. The specific registrations required depend on the company’s activities and anticipated revenue.
Tax Registration | When Required | How to Register |
GST (Goods and Services Tax) | If annual turnover is expected to exceed $75,000 (or $150,000 for non-profits) | Through the ABR or ATO Business Portal |
PAYG Withholding | As soon as the company employs staff or pays directors a salary | Through the ABR or ATO Business Portal |
Fringe Benefits Tax (FBT) | If the company provides non-cash benefits to employees or directors | Through the ATO |
Fuel Tax Credits | If the company uses fuel in eligible business activities | Through the ATO |
Payroll Tax | If total Australian wages exceed the relevant state threshold | Through each applicable state revenue authority |
GST registration means the company must charge GST on taxable sales, lodge regular Business Activity Statements (BAS), and remit net GST to the ATO. The frequency of BAS lodgement – monthly, quarterly, or annually – depends on the company’s annual turnover and chosen reporting cycle.
Step 6: Set Up Payroll and Superannuation (If Employing Staff)
If the company intends to employ staff from the outset – including paying directors a salary – payroll obligations begin immediately. This means:
- Registering for PAYG withholding and withholding the correct amount from each employee’s pay
- Setting up Single Touch Payroll (STP) reporting through ATO-approved payroll software
- Paying the Superannuation Guarantee (SG) contributions for eligible employees – 11.5% for FY2025-26, increasing to 12% from 1 July 2026
- Registering as an employer with the relevant super fund or default fund
From 1 July 2026, Payday Super requires employers to pay super contributions on each pay cycle rather than quarterly. For a newly registered company, building the right payroll infrastructure from the start – rather than retrofitting it later – is considerably more efficient.
Getting payroll set up correctly from day one is one of the highest-value things a new company can do. For a comprehensive overview of what payroll compliance involves – including STP reporting, PAYG withholding, and superannuation obligations – reviewing the employer payroll obligations guide for Australian businesses covers the key responsibilities a newly registered company will face from its first pay run.
Step 7: Open a Company Bank Account
A company is a separate legal entity, which means it must have its own bank account – separate from the personal accounts of its directors and shareholders. Mixing personal and business finances creates accounting complexity and can jeopardise the limited liability protection the company structure provides.
To open a company bank account in Australia, most banks require:
- The company’s ACN and ABN
- The certificate of registration from ASIC
- Identification documents for all directors and authorised signatories
- The company’s registered office address
Some banks also require a copy of the company constitution or a resolution by the directors authorising the opening of the account and nominating authorised signatories.
Step 8: Understand Ongoing ASIC and Compliance Obligations
Registration is just the beginning. Once a company is incorporated, it has a range of ongoing compliance obligations that must be met every year to remain in good standing with ASIC and the ATO.
Obligation | Frequency | Details |
ASIC annual review fee | Annual | ASIC charges an annual review fee to keep the company registration active. For a proprietary company, this is currently $310 per year. |
Annual statement review | Annual | ASIC issues an annual statement each year on the company’s review date. Directors must review and confirm that company details are correct. |
Update ASIC on changes | As required | Changes to directors, registered office, shareholders, or company name must be notified to ASIC – usually within 28 days. |
Keep financial records | Ongoing | Companies must keep financial records that correctly record and explain transactions, assets, and liabilities for at least 7 years. |
Lodge a tax return | Annual | Every company must lodge a company tax return each year, regardless of whether it made a profit. |
BAS lodgement | Monthly or quarterly | If registered for GST, BAS must be lodged and net GST remitted to the ATO on the applicable schedule. |
STP reporting | Each pay run | Payroll information must be reported to the ATO through STP on every pay event. |
How Much Does It Cost to Register and Run a Company in Australia?
Cost Item | Approximate Amount | Frequency |
ASIC registration fee | $597 | One-off (at registration) |
ASIC annual review fee | $310 | Annual |
ABN registration | Free | One-off |
Business name registration | $44 (1 year) / $102 (3 years) | Renewable |
Company constitution (if custom) | $300 – $2,000+ | One-off |
Accountant/setup fees | Varies | One-off and ongoing |
Payroll software (STP-enabled) | $10 – $100+/month | Ongoing |
Company tax return preparation | $500 – $3,000+ (varies by complexity) | Annual |
Common Mistakes When Registering a Company in Australia
- Choosing a company name that is too similar to an existing registered name, causing ASIC to reject the application
- Failing to update ASIC within 28 days of changes to directors, address, or shareholding – late notifications attract penalty fees
- Not separating company and personal finances from day one, making bookkeeping and tax preparation significantly harder
- Overlooking state-based obligations such as payroll tax, workers’ compensation insurance, and industry-specific licences
- Setting up the wrong share structure at registration – restructuring shares later can trigger stamp duty and other costs
- Not registering for PAYG withholding before making the first salary payment to a director or employee
For new companies planning to engage an accountant or bookkeeper from the outset – or for business owners looking to outsource the financial administration of their newly registered entity from day one – understanding the range of outsourced accounting and bookkeeping services available to Australian businesses helps set realistic expectations around what professional support covers and how it integrates with ongoing compliance obligations.
Getting Your New Company Off to the Right Start
Registering a company in Australia is a structured process with clear steps, but the compliance obligations that follow registration are ongoing and consequential. Getting the setup right – from the share structure and director appointments to payroll, tax registrations, and bookkeeping – determines how smoothly the company operates in its early months and years.
Befree supports newly registered companies and growing businesses across Australia with accounting, bookkeeping, and payroll services, helping founders and directors focus on building their business rather than managing compliance from scratch. Whether the company is registering for the first time or restructuring from a sole trader arrangement, having the right financial infrastructure in place from day one makes a measurable difference.
Frequently Asked Questions (FAQ)
How long does it take to register a company in Australia?
Online registration through ASIC Connect is typically processed within one to two business days for straightforward applications. If the application requires manual review – for example, due to a restricted word in the company name or a complex shareholding structure – processing can take longer. ABN registration, once the ACN is issued, is usually completed within five business days.
How much does it cost to register a company in Australia?
The ASIC registration fee for a proprietary limited company is currently $597 (as at FY2025-26). ABN registration is free. Additional costs include business name registration (if required), a company constitution, and any professional fees for legal or accounting assistance with the registration.
Can I register a company in Australia without a tax agent or accountant?
Yes. Registration can be completed directly through ASIC Connect and the ABR without professional assistance. However, decisions around share structure, constitution, and tax registrations can have long-term implications that are worth discussing with an accountant or solicitor before proceeding, particularly if the company has multiple shareholders or complex ownership arrangements.
Do I need a company secretary when registering a proprietary company?
No. A proprietary limited company is no longer required by law to have a company secretary. At least one director who ordinarily resides in Australia is required, while appointing a secretary is optional. Many small companies appoint a secretary or engage a registered agent to manage ASIC correspondence and compliance obligations.
What is the difference between an ACN and an ABN?
An ACN (Australian Company Number) is a nine-digit number issued by ASIC when a company is registered. It identifies the company as a legal entity. An ABN (Australian Business Number) is an eleven-digit number used for tax and business identification purposes, issued by the ATO through the Australian Business Register. A company needs both the ACN for ASIC-related matters and the ABN for tax, GST, and invoicing.
What taxes does a company have to pay in Australia?
An Australian proprietary company is subject to:
- Company income tax at 25% (base rate for small businesses with turnover under $50 million) or 30% (standard rate)
- GST on taxable sales, if registered for GST
- PAYG withholding on employee wages and director salaries
- Superannuation Guarantee contributions for eligible employees
- Fringe Benefits Tax, if applicable
- Payroll tax in each state where the total wage bill exceeds the relevant threshold
Can a company be registered with just one director and one shareholder?
Yes. A proprietary limited company can be registered with a single director who is also the sole shareholder. This is a common structure for sole operators who choose to operate through a company. The director must be an individual aged 18 or over who is ordinarily resident in Australia and not disqualified from managing companies.
What happens if I don't update ASIC after a change in directors or address?
Failure to notify ASIC of changes within the required timeframe – generally 28 days – is an offence under the Corporations Act. ASIC may issue a late fee and, in persistent cases, may take compliance action. Keeping ASIC records up to date is an ongoing obligation for all registered companies.