Setting up a company in Australia involves several steps and legal obligations—but the benefits, including limited liability, professionalism, and taxation advantages, make it worthwhile for expanding businesses. This guide covers everything from initial preparation to ongoing compliance.

Why Set Up a Company?

Forming a proprietary limited (Pty Ltd) company allows your business to operate as a separate legal entity, offering:

Setting Up a Company in Australia
  • Limited liability protection for directors and shareholders
  • Credibility and continuity, even if ownership changes
  • Corporate tax rate of 25% for small companies, possibly more favorable than personal tax rates
  • Clear ownership via issued shares

However, companies come with greater regulatory requirements, such as ASIC fees and director responsibilities under the Corporations Act.

Step 1: Prepare to Register

Before registering, gather key information:

  1. Director Requirements
    Every Australian company needs at least one director who resides in Australia. Directors must obtain a Director Identification Number (Director ID) by applying via the Australian Business Registry Services—this is mandatory under the Corporations Act .
  2. Company Name
    Choose and verify your company name on ASIC’s register. Ensure it’s unique and doesn’t infringe trademarks.
  3. Registered Office and Principal Place of Business
    The company must have an Australian street address (PO Boxes not accepted) for official correspondence and operations.
  4. Share Structure
    Decide who owns the company by allocating shares and determining share classes (e.g., ordinary shares). For small businesses, issuing one class of shares is often sufficient.

Organizing this up front streamlines the registration process.

Step 2: Register Your Company

You can register a company via ASIC’s online services or the Australian Government’s Business Registration Service. These platforms let you complete the process efficiently in one place.

To register:

  • Complete the application with company name, office addresses, director(s), shareholder(s), and share structure.
  • Pay the ASIC registration fee, which is currently $576 for a proprietary limited company (as of 2025). Confirm the latest fee via ASIC’s fee index.
  • Receive your ACN (Australian Company Number) and a certificate of registration instantly if approved.

Once your company is registered, it becomes a separate legal entity with rights and responsibilities under the Corporations Act 2001.

Step 3: Obtain ABN, TFN & Register for Taxes

Once incorporated, complete your tax registrations:

  • ABN (Australian Business Number) can be applied for during registration or immediately after.
  • TFN (Tax File Number) for the company is usually issued automatically.
  • Register for GST if expected turnover exceeds AU$75,000.
  • Set up PAYG withholding if you’ll employ staff or pay directors’ salaries.

These steps ensure the company can operate and comply with tax obligations.

Step 4: Set Up Your Financial Framework

With registration complete, implement essential systems:

Business Bank Account

Open an account in the company’s name to separate personal and business finances and support proper auditing.

Accounting & Reporting Systems

Use accounting software tailored to company requirements, including payroll and BAS preparation capabilities. Maintain invoicing, purchase records, and cash flow tracking.

Corporate Governance

Establish:

  • A register of members
  • Board meeting minutes and resolutions
  • Regular financial reporting (P&L, Balance Sheet)

These records are required for director compliance and year-end audits.

Step 5: Understand Ongoing Compliance Requirements

Once operational, your company must meet ongoing obligations:

ASIC Obligations

  • Annual review fee and statement issued by ASIC—payment and confirmation are required yearly.
  • Notify ASIC within 28 days of changes to director, address, share structure, or officer appointments.

Tax Obligations

  • Company tax return due annually, based on the financial year.
  • BAS lodgments (usually quarterly) for GST and PAYG withholding.
  • If employing staff: STP reporting, superannuation contributions and complying with workplace laws.

Director Duties

Directors are legally required to:

  • Act in the company’s best interests
  • Avoid insolvent trading
  • Ensure compliance with all laws
  • Keep accurate financial records

Failure to meet these obligations can lead to serious personal liability.

Step 6: Employing Staff and Expanding

As your company grows:

Setting Up a Company in Australia
  • Register for PAYG withholding and Single Touch Payroll
  • Remit superannuation contributions (11% as of 2025)
  • Obtain workers’ compensation insurance if required
  • Regularly review financials and strategy to ensure compliance and efficiency

Professional advice is key to scaling responsibly.

Step 7: Ongoing Support and Advice

Navigating company obligations can be overwhelming. Partnering with professionals can offer:

  • Assistance with ASIC and tax registrations
  • Accurate record keeping, BAS lodgements, and annual returns
  • Advice on corporate structure, cashflow, risk management
  • Support with director duties, payroll, and compliance

Contact us at TTS & Associates for expert guidance and peace of mind as your company grows.

Conclusion

Setting up a company in Australia involves multiple steps—from Director IDs and ASIC registration to tax registrations and ongoing compliance. The effort pays off through liability protection, tax efficiencies, and credibility in the market.

If you’re ready to build a compliant, future-ready company, let TTS & Associates handle the complexity while you focus on growing your business.

This article provides general information and does not replace professional advice tailored to your specific circumstances.