Asked about forming, incorporating, or registering a company in Australia.
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General reference only
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Quick Reference
| Field | Value | |---|---| | Country | Australia (Commonwealth of Australia) | | Currency | AUD | | Company registrar | Australian Securities and Investments Commission (ASIC) -- asic.gov.au | | Key legislation | Corporations Act 2001 (Cth) | | Typical formation time | 1--3 business days (online via BRS) | | Corporate tax rate | 25% (base rate entities, turnover < $50M); 30% (all others) | | Skill version | 1.0 |
Entity Types Comparison
| Feature | Sole Trader | Partnership | Pty Ltd (Proprietary) | Public Company (Ltd) | Trust (with corporate trustee) | |---|---|---|---|---|---| | Legal personality | No | No | Yes | Yes | No (trustee is legal person) | | Liability | Unlimited | Unlimited (joint and several) | Limited to share capital | Limited | Trustee liability (limited if Pty Ltd trustee) | | Min. founders | 1 | 2 | 1 shareholder + 1 director | 1 shareholder + 3 directors + 1 secretary | 1 settlor + 1 trustee | | Min. share capital | N/A | N/A | No minimum (commonly $1) | No minimum | N/A | | Max. shareholders | 1 | N/A | 50 (non-employee) | Unlimited | N/A | | Tax treatment | Personal income tax | Partners taxed individually | Company tax rate | Company tax rate | Trust distributions taxed in beneficiaries' hands | | Admin burden | Very low | Low | Medium | High | Medium--High | | ASIC registration | No | No (ABN only) | Yes ($611) | Yes | Only if trustee is a company | | Audit required | No | No | Only if large proprietary | Yes | No (unless regulated) |
Choose Company Name
Check availability on ASIC's company name check tool; Must include "Pty Ltd" or "Proprietary Limited"; Can reserve name for 2 months ($62 fee) or register directly; Identical or near-identical names will be rejected
Obtain Consent from Officeholders
All proposed directors and secretaries must consent in writing before registration; At least 1 director must ordinarily reside in Australia (for Pty Ltd)
Prepare Company Details
Registered office address (must be in Australia; can be accountant's or agent's office); Principal place of business; Share structure (number and class of shares, rights); Details of shareholders, directors, secretary (if any)
Quick Reference
| Field | Value |
|---|---|
| Country | Australia (Commonwealth of Australia) |
| Currency | AUD |
| Company registrar | Australian Securities and Investments Commission (ASIC) -- asic.gov.au |
| Key legislation | Corporations Act 2001 (Cth) |
| Typical formation time | 1--3 business days (online via BRS) |
| Corporate tax rate | 25% (base rate entities, turnover < $50M); 30% (all others) |
| Skill version | 1.0 |
Entity Types Comparison
| Feature | Sole Trader | Partnership | Pty Ltd (Proprietary) | Public Company (Ltd) | Trust (with corporate trustee) |
|---|---|---|---|---|---|
| Legal personality | No | No | Yes | Yes | No (trustee is legal person) |
| Liability | Unlimited | Unlimited (joint and several) | Limited to share capital | Limited | Trustee liability (limited if Pty Ltd trustee) |
| Min. founders | 1 | 2 | 1 shareholder + 1 director | 1 shareholder + 3 directors + 1 secretary | 1 settlor + 1 trustee |
| Min. share capital | N/A | N/A | No minimum (commonly $1) | No minimum | N/A |
| Max. shareholders | 1 | N/A | 50 (non-employee) | Unlimited | N/A |
| Tax treatment | Personal income tax | Partners taxed individually | Company tax rate | Company tax rate | Trust distributions taxed in beneficiaries' hands |
| Admin burden | Very low | Low | Medium | High | Medium--High |
| ASIC registration | No | No (ABN only) | Yes ($611) | Yes | Only if trustee is a company |
| Audit required | No | No | Only if large proprietary | Yes | No (unless regulated) |
Recommended default: Proprietary company limited by shares (Pty Ltd) for most commercial purposes.
Capital Requirements
| Entity Type | Min. Share Capital | Min. Paid-Up | Payment Timing | In-Kind Contributions |
|---|---|---|---|---|
| Pty Ltd | No statutory minimum ($1 common) | No minimum | As specified in share terms | Permitted (no independent valuation required for proprietary companies) |
| Public Ltd | No statutory minimum | No minimum | As specified | Permitted (expert's report required for non-cash consideration over threshold) |
Costs Breakdown
| Cost Component | Amount (AUD) | Notes |
|---|---|---|
| ASIC company registration | $611 | One-time (Pty Ltd, 2025--26) |
| Name reservation (optional) | $62 | Valid 2 months |
| Business name registration (if different from company name) | $45/year or $104/3 years | Only if trading under a different name |
| ABN registration | Free | Via ABR |
| GST registration | Free | Via ATO |
| ASIC annual review fee | $329/year | Pty Ltd (2025--26) |
| Total initial cost (government) | $611--$673 | Excluding professional fees |
| Legal / accountant setup fees | $500--$2,000 | Constitution, shareholder agreement, tax setup |
| Total with professional help | $1,100--$2,700 |
Annual Maintenance
| Item | Cost (AUD) |
|---|---|
| ASIC annual review fee | $329 |
| Accountant / tax agent fees | $1,500--$5,000/year |
| Business name renewal (if applicable) | $45/year |
| Registered office service (if using) | $200--$600/year |
| ASIC late fees | $98 (≤1 month) / $411 (>1 month) |
Post-Formation Compliance
| Obligation | Deadline | Authority |
|---|---|---|
| ASIC annual review | Annual (on registration anniversary) | ASIC |
| Company tax return | Due date varies (usually by 15 May via tax agent for 30 June year-end) | ATO |
| BAS (Business Activity Statement) | Quarterly or monthly (GST, PAYG, instalment) | ATO |
| PAYG summaries / STP finalisation | 14 July following the financial year | ATO |
| Superannuation guarantee | Quarterly (28 days after quarter end) | Super fund / ATO |
| Change notifications to ASIC | Within 28 days of change | ASIC |
| Financial records | Maintain for 7 years | Internal |
| Directors' duties | Ongoing (s180--184 Corporations Act) | ASIC |
Commonwealth Bank (CBA), Westpac, ANZ, NAB (Big 4); Macquarie, Bendigo (mid-tier); Airwallex, Wise Business (digital/international)
Foreign Founder Considerations
| Question | Answer |
|---|---|
| Non-resident directors allowed? | Yes, but at least 1 director must ordinarily reside in Australia |
| Resident director requirement | At least 1 (for Pty Ltd); at least 2 of 3 for public companies |
| Nominee directors | Permitted (ASIC register shows actual director names) |
| Physical presence required? | No (online registration); resident director must be genuinely resident |
| Foreign ownership restrictions | Foreign Investment Review Board (FIRB) approval may be required for certain sectors and thresholds |
| ABN for foreign entities | Foreign companies can register an ARBN ($506) and apply for ABN |
| Tax treaty benefits | Australia has extensive DTA network; check withholding rates |
Timeline
| Step | Duration | Cumulative |
|---|---|---|
| Prepare documents and officer consents | 1--2 days | Day 1--2 |
| Register via BRS (ABN + company + GST) | 1 day | Day 2--3 |
| ASIC issues ACN and certificate | 1--3 days | Day 3--6 |
| Open business bank account | 1--3 days (resident) / 1--3 weeks (non-resident) | Day 4--27 |
| ATO registrations confirmed | 1--28 days | Day 4--34 |
| Ready to trade | As fast as 3--5 days (Australian-resident founders) |
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Other Australia computations in the OpenAccountants Tax Library.
Register via BRS
Go to register.business.gov.au; Can simultaneously apply for: company registration, ABN, TFN, GST, PAYG withholding; Fee: $611 (Pty Ltd, 2025--26 financial year); ASIC processes and issues ACN (Australian Company Number) typically within 1--3 days
Receive Certificate of Registration
Certificate confirms ACN, company name, date of registration, type; Company legally exists from date on certificate
Apply for ABN
Free via Australian Business Register (ABR); Required for tax invoices, GST, and dealing with other businesses; Can be applied for during BRS registration
GST registration threshold
$75,000 (or will be); $150,000 for non-profits
Register for PAYG Withholding
Required before paying employees or directors; Register via BRS or ATO
Capital Requirements
| Entity Type | Min. Share Capital | Min. Paid-Up | Payment Timing | In-Kind Contributions | |---|---|---|---|---| | Pty Ltd | No statutory minimum ($1 common) | No minimum | As specified in share terms | Permitted (no independent valuation required for proprietary companies) | | Public Ltd | No statutory minimum | No minimum | As specified | Permitted (expert's report required for non-cash consideration over threshold) |
No minimum capital requirement
Australia has no minimum capital requirements for company formation.
Costs Breakdown
| Cost Component | Amount (AUD) | Notes | |---|---|---| | ASIC company registration | $611 | One-time (Pty Ltd, 2025--26) | | Name reservation (optional) | $62 | Valid 2 months | | Business name registration (if different from company name) | $45/year or $104/3 years | Only if trading under a different name | | ABN registration | Free | Via ABR | | GST registration | Free | Via ATO | | ASIC annual review fee | $329/year | Pty Ltd (2025--26) | | **Total initial cost (government)** | **$611--$673** | Excluding professional fees | | Legal / accountant setup fees | $500--$2,000 | Constitution, shareholder agreement, tax setup | | **Total with professional help** | **$1,100--$2,700** | |
Annual Maintenance
| Item | Cost (AUD) | |---|---| | ASIC annual review fee | $329 | | Accountant / tax agent fees | $1,500--$5,000/year | | Business name renewal (if applicable) | $45/year | | Registered office service (if using) | $200--$600/year | | ASIC late fees | $98 (≤1 month) / $411 (>1 month) |
Post-Formation Compliance
| Obligation | Deadline | Authority | |---|---|---| | ASIC annual review | Annual (on registration anniversary) | ASIC | | Company tax return | Due date varies (usually by 15 May via tax agent for 30 June year-end) | ATO | | BAS (Business Activity Statement) | Quarterly or monthly (GST, PAYG, instalment) | ATO | | PAYG summaries / STP finalisation | 14 July following the financial year | ATO | | Superannuation guarantee | Quarterly (28 days after quarter end) | Super fund / ATO | | Change notifications to ASIC | Within 28 days of change | ASIC | | Financial records | Maintain for 7 years | Internal | | Directors' duties | Ongoing (s180--184 Corporations Act) | ASIC |
Documents Typically Required
Certificate of registration (ACN); Company constitution or replaceable rules; ABN confirmation; ID (passport / driver's licence) for all directors; Proof of address for directors and shareholders
Typical Timeline
1--3 days (Big 4 banks and digital banks for Australian residents); 1--3 weeks (non-resident directors, enhanced KYC)
Foreign Founder Considerations
| Question | Answer | |---|---| | Non-resident directors allowed? | Yes, but at least 1 director must ordinarily reside in Australia | | Resident director requirement | At least 1 (for Pty Ltd); at least 2 of 3 for public companies | | Nominee directors | Permitted (ASIC register shows actual director names) | | Physical presence required? | No (online registration); resident director must be genuinely resident | | Foreign ownership restrictions | Foreign Investment Review Board (FIRB) approval may be required for certain sectors and thresholds | | ABN for foreign entities | Foreign companies can register an ARBN ($506) and apply for ABN | | Tax treaty benefits | Australia has extensive DTA network; check withholding rates |
R-AU-F1 -- No Australian-resident director
Every Pty Ltd must have at least one director who ordinarily resides in Australia. A company cannot be registered without this. Advise the client to appoint a local director or use a resident director service (with proper governance).R-AU-F1
R-AU-F2 -- Failing to pay ASIC annual review fee
ASIC charges $329/year. If the annual review is not completed and fee is not paid, ASIC will deregister the company. Late fees apply: $98 within 1 month, $411 after 1 month.R-AU-F2
R-AU-F3 -- GST threshold ignorance
If annual turnover reaches $75,000, GST registration is mandatory. Failing to register when required results in penalties and backdated GST assessments.R-AU-F3
R-AU-F4 -- Superannuation non-compliance
Employers must pay at least 11.5% (2025--26) superannuation guarantee on top of ordinary time earnings. Non-payment results in the Superannuation Guarantee Charge (SGC), which is not tax-deductible.R-AU-F4
R-AU-F5 -- Shell company without substance
This skill will not assist in forming a company with no genuine business activity in Australia. ASIC and the ATO actively pursue sham structures.R-AU-F5
Timeline
| Step | Duration | Cumulative | |---|---|---| | Prepare documents and officer consents | 1--2 days | Day 1--2 | | Register via BRS (ABN + company + GST) | 1 day | Day 2--3 | | ASIC issues ACN and certificate | 1--3 days | Day 3--6 | | Open business bank account | 1--3 days (resident) / 1--3 weeks (non-resident) | Day 4--27 | | ATO registrations confirmed | 1--28 days | Day 4--34 | | **Ready to trade** | | **As fast as 3--5 days (Australian-resident founders)** |
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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