Start a Company in Australia: Setup Requirements, Structure, Costs
- Gordon Q.C Du
- Nov 17
- 7 min read
Starting a company in Australia can be simple when you know the rules. From choosing a structure to meeting registration and compliance requirements, there are several decisions to get right from the beginning. This guide outlines the essential steps, documents and costs involved, giving you a clear overview of what to expect when setting up a business.
1. Why Starting a Company in Australia Requires a Professional Setup
Australia has one of the most regulated business environments in the world, with strict rules around company registration, tax compliance, and ongoing reporting. Many new business owners encounter challenges if they try to navigate the process without guidance, including legal pitfalls, tax complications, or delays in approval.
Since 2003, Gordon QC Du & Associates has been helping Australian citizens and permanent residents establish companies correctly and efficiently. With over 20 years’ experience in taxation, accounting, and business setup, the firm ensures each client’s company is structured properly and compliant from the outset.
2. Who Can Start a Company in Australia?
Australia allows a wide range of individuals to register a company, but certain eligibility rules must be met. In most cases, you can start a company if you are:
an Australian citizen
a permanent resident
or an eligible visa holder who is legally permitted to operate a business
However, at least one director must ordinarily reside in Australia. This is a strict ASIC requirement and applies to almost all proprietary limited (Pty Ltd) companies.
You will also need to complete ID verification during the registration process. This typically includes passport, driver’s licence, or other approved identification to confirm your identity with ASIC and the Australian Business Registry Services (ABRS).
Every company must also nominate:
a registered office address in Australia (cannot be a PO Box), and
a principal place of business
If you are unsure about Director ID requirements, see our detailed guide in the article about ABRS.
3. Choosing the Right Business Structure
Selecting the right business structure is a crucial step when starting a company in Australia. The structure you choose affects your tax obligations, personal liability, and ongoing compliance requirements. Making the wrong choice early on can lead to unnecessary costs or legal issues down the track.
At a high level, the main business structures include:
Sole Trader – simplest form, owner and business are legally the same.
Partnership – shared ownership and responsibilities among partners.
Proprietary Limited (Pty Ltd) Company – separate legal entity, limited liability, commonly used by SMEs.
Trust – often used for asset protection or investment purposes.
For most small to medium enterprises (SMEs), a Pty Ltd company is the preferred structure due to liability protection and tax flexibility. Choosing incorrectly is a common pitfall, so it’s important to understand the high-level differences.
For a detailed comparison of all company types, see our guide → Types of Companies in Australia.
4. High-Level Steps to Start a Company in Australia
While the full step-by-step process is covered in our cluster guide, here’s an overview of the key actions to get your company up and running
Prepare your business details – outline your company name, structure, and intended operations.
Choose your company structure – select from Sole Trader, Partnership, Pty Ltd, or Trust.
Check company name availability – ensure your chosen name is unique and compliant with ASIC rules.
Appoint directors & shareholders – assign roles and responsibilities for company governance.
Register with ASIC – submit your company registration application to obtain an ACN.
Apply for ABN, TFN, GST/PAYG – register with the Australian Business Registry Services for taxation purposes.
Set up bank & accounting system – establish a business bank account and accounting records.
Understand your ongoing obligations – ensure compliance with reporting, record-keeping, and tax requirements.
Each step has its nuances, so it’s recommended to follow the full guidance for a smooth setup.
For the complete step-by-step guide, see → Steps to Set Up a Company.
5. The Essential Starting a Business in Australia Checklist
Before you officially register your company, it helps to have a high-level checklist to ensure all key requirements are considered. This checklist provides a clear overview without going into detailed steps, which are covered in our cluster guides:
Business structure chosen – ensure it suits your business needs and liability preferences.
Business name confirmed – check availability and compliance with ASIC naming rules.
Director ID obtained – required for all company directors in Australia.
ASIC registration completed – your company must be officially registered to operate.
ABN, TFN, GST/PAYG registered – tax registrations with ABRS.
Licenses identified – verify any industry-specific permits or licenses are obtained.
Accounting software prepared – set up systems for record-keeping and reporting.
Insurance arranged – consider business insurance for risk management.
Explore full license requirements → Business Licences Australia
This overview helps you visualise all critical components before the registration process, reducing the risk of missed steps.
6. Costs of Starting a Company in Australia
Understanding the potential costs is important, though exact fees vary depending on your business structure, professional support, and industry. At a high level:
ASIC fees – a standard registration fee is payable when registering a company, which varies slightly depending on the company type.
Professional service fees – if you engage accountants, tax advisors, or business setup specialists, costs depend on the complexity of your business.
Ongoing annual fees – companies must pay ASIC annual review fees and maintain compliance obligations.
It’s important to note that these costs can fluctuate based on your company’s size, chosen structure, and any additional regulatory requirements.
For a detailed breakdown of all registration fees → Business Registration Fees Australia
7. Understanding Your Legal & Tax Obligations
Starting a company in Australia comes with ongoing legal and tax responsibilities. Even after registration, directors and business owners must ensure compliance to avoid penalties or complications. Key obligations include:
Director responsibilities – directors are legally responsible for company governance, financial decisions, and ensuring compliance with ASIC rules. Learn more about Director ID requirements in our ABRS guide.
Record-keeping – maintain accurate financial and operational records to meet legal and tax reporting standards.
ASIC Annual Review – companies must complete an annual review and pay the associated fee to remain registered.
BAS and GST reporting – businesses registered for GST must submit Business Activity Statements to the Australian Taxation Office.
Payroll & Super – if employing staff, ensure PAYG withholding and superannuation obligations are met.
For industry-specific permits, refer to our Business Licences Australia guide, and for detailed post-registration tasks, see Steps to Set Up a Company.
8. How Long Does It Take to Register a Company?
The time required to register a company in Australia depends on the method and accuracy of your application:
Self-registration – typically takes 1 – 3 business days, assuming all documentation is correct.
Using a professional service – registration can be completed within 4 – 24 hours, depending on the provider and your preparedness.
Factors that may delay registration include:
Company name conflicts or unavailability
Director ID verification errors
Incomplete or inconsistent application information
Using a structured process and ensuring all requirements are met upfront can significantly reduce delays.
9. Why Professional Assistance Matters When Starting a Company
While it’s possible to register a company yourself, engaging professional assistance can save time, reduce risks, and ensure long-term compliance. Key benefits include:
Optimising your business structure – professionals help choose a structure that minimises tax and protects personal assets.
Avoiding costly mistakes – selecting the wrong structure or filing errors can be expensive to correct later.
Reducing risk of rejection – experienced advisors ensure your ASIC application and supporting documents meet all requirements.
Accurate registration of ABN, TFN, GST – correct registration from the start avoids future compliance headaches.
Support with licences, payroll, super, and accounting – ongoing guidance helps your business remain compliant across all regulatory obligations.
Professional assistance aligns with the expectations of founders who want a smooth, compliant, and efficient setup rather than navigating complex rules alone.
10. Why Choose Gordon QC Du & Associates ?
Gordon QC Du & Associates has been supporting Australian business founders since 2003. Our team of registered tax agents and accounting specialists offers end-to-end assistance, from structuring to registration, accounting, and ongoing compliance. Key reasons to work with us include:
Over 20 years’ experience in taxation, accounting, and company formation
Fast registration process – some companies can be registered within 24 hours
End-to-end support – including structure selection, ABN/TFN registration, payroll, super, and licences
Trusted by over 3,000 successfully registered businesses
Expertise in both local and international founder requirements
With Gordon QC Du & Associates, you gain the confidence that your company is correctly structured, compliant, and ready for growth from day one.
FAQs
What do I need to start a company in Australia?
→ You’ll need a suitable business structure, a unique company name, at least one director with a Director ID, a registered office address in Australia, and appropriate tax registrations (ABN, TFN, GST if applicable).
How much does it cost to start a company?
→ Costs vary depending on the company structure, ASIC fees, and whether you use professional services. Ongoing annual fees and compliance costs should also be considered. For a detailed breakdown, see our guide on Business Registration Fees in Australia.
How long does it take to register a company?
→ Self-registration generally takes 1–3 business days, while professional services can complete the process in 4–24 hours. Delays may occur due to name conflicts, ID verification, or incomplete documentation.
Who can be a director?
→ Directors must be Australian citizens, permanent residents, or eligible visa holders. At least one director must reside in Australia. All directors require a valid Director ID.
Do I need GST registration from day one?
→ GST registration is only required if your business turnover is $75,000 or more annually. Otherwise, registration is optional but can be beneficial in certain circumstances.
Do I need a business licence?
→ Depending on your industry and location, certain licences or permits may be required. It’s important to verify requirements before starting operations. For more, see our Business Licences Australia guide.
Start Your Company in 24 Hours
Setting up your company correctly from the start ensures compliance, tax efficiency, and peace of mind. With Gordon QC Du & Associates, you can have your business fully registered in as little as 24 hours.
Get expert guidance, secure your company structure, and start trading confidently. Contact us today to begin your company registration process.
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