How to start a company in Australia

Last checked: November 2026 · Currency: AUD

Australian startups almost always use a proprietary limited company (Pty Ltd), registered online with ASIC in a day. Every director needs a director ID, and at least one director must ordinarily live in Australia. After registration you get an ABN, register for GST once turnover reaches $75,000, and protect your brand with IP Australia.

General information, not legal or tax advice. Rules and fees change; always check the official source.

Recommended for co-foundersPick a Pty Ltd: it keeps founders' personal assets separate, lets you issue shares to investors and options to staff, and qualifies for the 25% base rate entity tax rate while small.

Company types

Type	Minimum capital	Liability	Best for
Pty Ltd Proprietary company limited by shares	No minimum share capital	Limited	Co-founder teams planning to raise investment or issue employee options
Partnership General partnership (registered via an ABN)	None	Unlimited (partners are jointly liable)	Very early testing with no investors or employees
Sole trader Individual trading under their own ABN	None	Unlimited	One founder only; not suitable for a co-founder team

Registration, step by step

1
Agree on equity, roles and vestingAgree how shares are split, who is a director, and a vesting schedule (e.g. 4 years, 1-year cliff). Record it in a shareholders' agreement signed once the company exists.business.gov.au: Starting a business
2
Get director IDsEvery director must have a director ID before being appointed; apply online through Australian Business Registry Services with myID. At least one director must ordinarily reside in Australia.ATO: Work out which registrations you need
3
Choose the company structure and constitutionRegister a Pty Ltd; decide whether to use the replaceable rules or adopt a constitution (investors usually expect one). Set up share classes so you can issue investor and option shares later.ASIC: Register a company
4
Register the company with ASICApply online (Form 201 or via the Business Registration Service) with directors, shareholders, registered office and share details. You receive an ACN, usually the same day.ASIC: Register a company
5
Apply for an ABN and tax registrationsOnce you have the ACN, apply for an ABN and, at the same time, GST and PAYG withholding if needed. GST registration is mandatory at $75,000 GST turnover and must be done within 21 days.ABR: Applying for GST, PAYG and other registrations
6
Open a bank account and pay for sharesOpen a company bank account with the ACN/ABN and pay the founders' share subscription money into it. Keep company and personal money separate from day one.ATO: Registering for GST
7
File your trade markRegistering a company or business name does not give you brand rights. File a trade mark with IP Australia; using the picklist of goods and services is cheaper.IP Australia: Trade mark timeframes and fees

Costs and time

Item	Amount
ASIC company registration (proprietary company)	About A$636 (from 1 July 2026; A$611 in 2025–26) Check the official source
ASIC annual review fee (proprietary company)	About A$330–A$345 per year Check the official source
Director ID and ABN	Free
Lawyer for constitution and shareholders' agreement (optional)	Roughly A$1,500–A$5,000 Check the official source
IP Australia trade mark application	A$250 per class with picklist; A$400 per class without

How long it takes: ASIC registration is usually same day online; with director IDs, ABN, GST and a bank account, plan for about 1–2 weeks.

Taxes

Tax	Rate	Note
Company tax (base rate entity)	25%	For companies with aggregated turnover under $50 million and no more than 80% passive income.
Company tax (other companies)	30%	Applies if the base rate entity test is not met.
GST	10%	Mandatory registration at $75,000 GST turnover (current or projected).

Protect your name

TrademarkIP AustraliaA$250 per class (picklist) or A$400 per class (own wording); TM Headstart from A$330 per class Trademark office Trademark basics →

PatentIP AustraliaPatent office Patent basics, and when not to bother →

Tips for co-founders

Apply for every co-founder's director ID before registering the company, because ASIC will not accept a director without one.
If all founders live overseas, you need at least one Australian-resident director before you can register a Pty Ltd.
Ask your accountant about the R&D Tax Incentive and Early Stage Innovation Company (ESIC) status, which gives investors tax offsets.
Put founder vesting and leaver rules in the shareholders' agreement, not just in an email.

The co-founder agreement checklist →

Official links

General information, not legal or tax advice. Rules and fees change; always check the official source. Last checked: November 2026.

Other countries