How to Register a Company in Australia Step by Step (2025-2026) Complete Guide
Starting a business in Australia is an exciting journey, but one of the most important decisions you’ll make early on is choosing the right business structure. While many entrepreneurs begin as sole traders, registering a company offers stronger legal protection, credibility, and room for growth. A registered company is seen as a separate legal entity, meaning your personal assets are generally protected if the business faces risks. It also makes it easier to attract investors, hire employees, and build long-term trust with clients.
In 2025, registering a company in Australia is more streamlined than ever. The Australian Securities and Investments Commission (ASIC) and the Australian Business Register (ABR) have integrated processes to reduce paperwork and speed up approvals. Digital tools and cloud-based systems also allow new business owners to manage compliance, taxes, and reporting more efficiently. For non-residents and overseas investors, the updated rules make it simpler to establish a local presence and comply with tax obligations without unnecessary delays.
The benefits of registering a company extend far beyond compliance. You gain access to lower corporate tax rates, better financing opportunities, and the ability to scale your operations with confidence. Compared to operating as a sole trader, a company structure provides higher legitimacy and long-term stability—making it a smart choice for entrepreneurs who want to take their business to the next level.
In this guide, we’ll walk you through the step-by-step process of registering a company in Australia in 2025. From choosing your company name to obtaining an Australian Business Number (ABN), Tax File Number (TFN), and meeting ongoing compliance requirements, we’ll cover everything you need to know to get started the right way.
Understanding Company Registration in Australia
Registering a company in Australia means creating a separate legal entity that operates independently from its owners. Unlike a sole trader or partnership, a registered company has its own legal rights and obligations. This structure allows the business to enter contracts, own property, sue or be sued, and remain in existence even if the ownership changes.
The process is overseen by the Australian Securities and Investments Commission (ASIC), the governing body responsible for regulating companies under the Corporations Act 2001. Once your company is registered with ASIC, it is recognized as a legal entity across Australia.
Types of Companies in Australia
There are several types of companies available under the Corporations Act, but the most common include:
Proprietary Limited Company (Pty Ltd):
The most popular choice for small to medium-sized businesses. A Pty Ltd company is privately owned, cannot sell shares to the public, and is limited to 50 non-employee shareholders. It offers limited liability protection, meaning shareholders’ personal assets are generally safe if the company faces debts or legal issues.
Public Company:
A public company can offer shares to the public and may be listed on the Australian Stock Exchange (ASX). These companies are subject to stricter reporting and governance requirements. Public companies are ideal for larger businesses seeking to raise significant capital.
Not-for-Profit or Charity:
Organizations set up for social, charitable, or community purposes can register as companies limited by guarantee. These entities must reinvest profits into their mission rather than distributing them to members or shareholders.
Key Numbers: ABN, TFN, and ACN
When registering a company, it’s important to understand the differences between the identifiers you’ll need:
ABN (Australian Business Number):
A unique 11-digit number that identifies your business to the government and community. It’s required for GST, invoicing, and interacting with the ATO.
TFN (Tax File Number):
Issued by the Australian Taxation Office (ATO), the TFN is necessary for tax obligations. A company must have its own TFN, separate from its directors.
ACN (Australian Company Number):
A unique 9-digit number issued by ASIC upon company registration. It appears on all official company documents.
Together, these numbers form the backbone of your company’s legal and tax identity, ensuring compliance with Australian regulations.
Choosing the Right Business Structure
Before you begin the registration process, one of the most important decisions you’ll make is choosing the right business structure. Your choice will affect how much tax you pay, the level of control you have, your legal liability, and how easily you can raise capital or expand in the future. In Australia, the four most common structures are Sole Trader, Partnership, Company, and Trust.
Sole Trader
A sole trader is the simplest structure. You operate the business as an individual and are legally responsible for all aspects of it, including debts and liabilities. While it’s inexpensive to set up, a sole trader has unlimited liability—meaning personal assets could be at risk if the business incurs debts or legal claims.
Partnership
A partnership involves two or more people running a business together. Like sole traders, partners are personally liable for business debts, though profits and responsibilities are shared. Partnerships can be easier to establish than a company but still carry personal liability risks.
Trust
Company
A company is a separate legal entity registered with the Australian Securities and Investments Commission (ASIC). This means the company—not its owners—is legally responsible for debts. Most small and medium businesses choose the Proprietary Limited (Pty Ltd) structure because it offers:
- Liability protection – Shareholders’ personal assets are generally safe.
- Business expansion opportunities – A company can attract investors, issue shares, and build credibility with clients and suppliers.
- Tax optimization – Companies pay a flat corporate tax rate, which may be lower than individual marginal tax rates.
Why a Company Might Be Better for You
1. Liability Protection – Unlike a sole trader or partnership, your personal assets are generally protected if the business faces financial or legal issues.
2. Business Expansion – Companies are more attractive to investors and can scale more effectively.
3. Tax Optimization – With a flat tax rate and potential deductions, companies can be more tax-efficient than other structures.
Comparison of Business Structures
When to Seek Professional Advice?
Selecting the wrong structure can lead to higher taxes or unnecessary legal risks. If you’re unsure which structure suits your goals, consult a tax and financial advisor or a chartered tax advisor. They can help you weigh the pros and cons, ensure compliance with regulations, and align your choice with long-term financial planning.
Step-by-Step Process to Register a Company in Australia (2025)
Starting a company in Australia is a structured process that requires compliance with the Australian Securities and Investments Commission (ASIC) regulations. Below is a complete step-by-step guide to help you understand what needs to be done and why each step is important.
Step 1: Decide on a Company Name
Your company name is the first impression customers, partners, and regulators will have. Choosing wisely is crucial.
Rules for Naming
● The name must be unique and not identical to an existing registered company.
● Certain terms like “bank,” “trust,” “university,” or anything suggesting a government connection require special approval.
● Offensive or misleading words are strictly prohibited.
Checking Availability
Business Name vs Company Name
● Company Name: Registered with ASIC during company incorporation and legally protected.
● Business Name (Trading Name): Optional. Register this if you want to trade under a name different from your company’s legal name.
Step 2: Choose Your Company Type
Australia offers several company structures, and selecting the right one impacts your compliance, costs, and reporting obligations.
Proprietary Limited (Pty Ltd)
● The most common company type for small to medium businesses.
● Must have at least one director residing in Australia.
● Shares are privately held (not offered to the public).
Public Company
● Can offer shares to the public and list on the stock exchange.
● Requires at least three directors, two of whom must be Australian residents.
● Must appoint a company secretary who resides in Australia.
● Higher compliance costs due to public reporting obligations.
Special Types
● Charities & Not-for-profits: Registered under ASIC and the Australian Charities and Not-for-profits Commission (ACNC).
● Superannuation trustee companies: Specific structure for managing retirement funds.
Most entrepreneurs choose Pty Ltd because of its limited liability and lower compliance burden.
Step 3: Decide on Governance Structure
The governance structure defines how your company will be managed and the rules shareholders and directors must follow.
Constitution vs Replaceable Rules
● Replaceable Rules: Default set of rules under the Corporations Act 2001. Suitable for small businesses.
● Constitution: A customised legal document tailored to your business needs. Offers flexibility but requires legal drafting.
Shareholder Rights
● Voting on company matters.
● Receiving dividends if declared.
● Access to certain company records.
Director Responsibilities
Under the Corporations Act 2001, directors must:
● Act in good faith in the best interest of the company.
● Avoid conflicts of interest.
● Keep accurate financial records.
● Prevent the company from trading while insolvent.
Step 4: Appoint Company Directors and Secretaries
Every company must have directors to oversee operations and ensure compliance.
Director Requirements
● Minimum 1 director who resides in Australia.
● Directors must be at least 18 years old.
● Disqualified individuals (e.g., bankrupt persons or banned directors) cannot be appointed.
Company Secretary
● Optional for proprietary companies.
● Mandatory for public companies.
● The secretary ensures compliance with reporting and corporate governance obligations.
Step 5: Decide Shareholders and Share Structure
A company must have at least one shareholder, but you can have multiple depending on ownership distribution.
Minimum Requirement
● At least 1 shareholder (can also be the director).
Types of Shares
● Ordinary Shares: Standard ownership rights (dividends, voting).
● Preference Shares: Priority in dividend payments but often limited voting rights.
Example of Ownership Distribution
● John owns 60 ordinary shares.
● Sarah owns 40 ordinary shares.
This means John holds 60% ownership and voting rights, while Sarah holds 40%.
Step 6: Registered Office & Principal Place of Business
ASIC requires every company to nominate official addresses.
● Registered Office: Where official communications are sent. Must be a physical Australian address (not a PO Box).
● Principal Place of Business: Where the business operates day-to-day.
If you are based overseas, you must appoint a resident agent to act on your behalf in Australia.
Step 7: Apply for an Australian Company Number (ACN)
The Australian Company Number (ACN) is a unique 9-digit identifier issued by ASIC upon registration.
Why It’s Important
● Must be displayed on company documents, invoices, and contracts.
● Helps ASIC track companies and ensures transparency.
The ACN also links to your business name and ABN (Australian Business Number).
Step 8: Register for ABN & TFN
Australian Business Number (ABN)
● A unique 11-digit number used for invoicing and GST.
● Without an ABN, other businesses may withhold tax from your payments.
Tax File Number (TFN)
● Required for lodging company tax returns.
● Each company must have its own TFN separate from directors’ or shareholders’ TFNs.
Step 9: Register for GST (If Applicable)
Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia.
Compulsory Registration
If your company expects to earn AUD 75,000 or more per year, you must register.
Voluntary Registration
Businesses below the threshold can still register to claim GST credits on expenses.
Step 10: Pay the Registration Fee & Lodge Application with ASIC
After completing all the above steps, you need to formally register with ASIC.
Registration Fees
ASIC charges a fee for registering a company. (Check ASIC’s official website for the latest fee – around $ 611 for proprietary companies in 2025).
Approval Timeframe
Usually processed within minutes to 1 business day if lodged online.
Lodging the Application
● Can be done online via ASIC’s website or through a registered agent/lawyer.
● You’ll need:
○ Proposed company name.
○ Registered office address.
○ Details of directors and shareholders.
○ Share structure.
Step 11: Receive Certificate of Incorporation
Once approved, ASIC will issue a Certificate of Incorporation.
What’s Included
● Company name.
● Australian Company Number (ACN).
● Date of registration.
Next Steps After Registration
1. Open a company bank account using your ACN and certificate.
2. Set up accounting and record-keeping systems.
3. Ensure compliance with ongoing obligations (annual review fee, updating ASIC if details change).
Conclusion: Registering Your Company in Australia the Right Way
Starting a company in Australia may feel overwhelming, but with the right preparation, it’s a straightforward process. From choosing the right structure and name to securing your ACN, ABN, and TFN, each step builds the foundation for a compliant and successful business.
Registering as a company gives you legal protection, tax advantages, and credibility that sole traders and partnerships often lack. Whether you’re a local entrepreneur or an overseas investor, the streamlined 2025–2026 company registration process through ASIC and the ABR makes it easier than ever to establish your presence in Australia.
If you want expert guidance and peace of mind, working with a registered tax agent or accountant like AMA Accountants ensures your company registration is done right the first time—saving you time, reducing risks, and setting your business up for long-term success.
Ready to register your company in Australia?
Book a consultation with AMA Accountants today and let our experts handle the process while you focus on growing your business.
Authored By Amit Chugh
Partner, CPA & Registered Tax Agent
Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.
