The Complete 2026 Guide to Setting Up a Company in Australia
Australia remains one of the most business-friendly jurisdictions in the Asia-Pacific. The World Bank’s ease-of-doing-business rankings consistently place Australia in the top 15 globally, and ASIC (the Australian Securities and Investments Commission) processes most Pty Ltd registrations within 1–2 business days.
But registering a company is the easy part. Behind the ACN lies a web of tax registrations, ongoing compliance obligations, and costs that catch many first-time founders off guard.
This guide covers the entire 2026 company setup journey—from choosing your structure to opening a bank account to staying compliant for years to come.
Disclaimer: This article is general information only and does not constitute legal or tax advice. Consult a TPB-registered tax agent or qualified legal professional before acting.
1. Choose Your Business Structure
Australia recognises four main business structures:
| Structure | Legal Entity | Liability | Tax Rate | Best For |
|---|---|---|---|---|
| Sole Trader | Individual | Unlimited | Personal marginal rates (19%–45%) | Freelancers, side-hustles, testing a business idea |
| Partnership | 2–20 partners | Joint & several | Each partner taxed individually | Professional services firms (law, accounting, medical) |
| Pty Ltd (Company) | Separate legal entity | Limited to company assets | 25% base rate (aggregated turnover < $50M) | Most serious businesses, asset protection, investment visas |
| Trust | Trustee holds assets | Trustee liability | Beneficiaries taxed individually | Family businesses, wealth structuring, asset protection |
For most founders—especially migrants and offshore entrepreneurs—a Pty Ltd company is the default choice. Three reasons:
- Limited liability: Your house and personal savings aren’t on the line if the business fails.
- Lower corporate tax rate: 25% for businesses under $50M turnover (2026 FY).
- Commercial credibility: An ACN carries more weight with landlords, lenders, and enterprise clients than an ABN alone.
2. The 6-Step Pty Ltd Registration Process
Step 1: Decide Your Company Details
Before filing, you need:
- Company name: Must not be identical or too similar to an existing name. ‘Bank’, ‘University’, ‘Royal’, and ‘Police’ are restricted. Have 2–3 backup options.
- Registered office address: Must be a physical Australian address (no PO Box). If you don’t have one, a virtual office solves this (see Section 5).
- Directors and shareholders: At least one director must be ordinarily resident in Australia. This is the single biggest hurdle for offshore founders—see Section 5 for solutions.
Step 2: File Form 201 with ASIC
You can file directly via ASIC Connect ($611 fee) or through a Registered ASIC Agent. Form 201 runs to several dozen fields covering governance, share structure, and director consent declarations. One misstep and ASIC kicks it back.
Most founders use an agent. Sleek AU company registration (ASIC Registered Agent 47659) files your Form 201 and simultaneously prepares all eight statutory documents—constitution, shareholder agreement, director consent, share register, and more. These documents would run $2,000–$5,000 if drafted by a law firm.
Step 3: Register for an ABN
Once your ACN is issued, go to the Australian Business Register (ABR) and apply for an ABN. This is free and usually instant. Your ABN is your business’s “identity number”—without it, you can’t invoice, charge GST, or claim GST credits.
Step 4: Register for GST (If Required)
Mandatory if projected annual turnover exceeds $75,000. Below the threshold, many founders voluntarily register anyway because:
- You can claim back the GST you pay on business expenses (rent, equipment, services).
- Invoices with GST look more established.
- Many large organisations only deal with GST-registered suppliers.
GST registration means quarterly BAS (Business Activity Statement) lodgement—income, GST, and PAYG all reported together.
Step 5: Register for PAYG Withholding (If Hiring)
If you employ staff—including yourself as a director taking a salary—register for PAYG Withholding. You withhold tax from wages and remit it quarterly to the ATO.
Step 6: Open a Business Bank Account
The big four (CBA, ANZ, NAB, Westpac) plus digital banks (Airwallex, Wise, Revolut) all serve companies. Traditional banks typically require a 100-point ID check in-branch, which is difficult for offshore directors. Digital alternatives like Airwallex offer fully online onboarding with multi-currency accounts and Xero integration—a practical first step while you sort out a traditional account later.
3. Total Cost Breakdown (2026)
| Item | Cost | Notes |
|---|---|---|
| ASIC registration fee | $611 | Paid directly to ASIC |
| Registration agent service | $180–$300 | Includes 8 statutory documents (e.g., Sleek Launch at $180 first year) |
| ABN registration | Free | Online via ABR |
| GST registration | Free | If required |
| Virtual office address | $300/yr | Only if you lack an Australian address |
| Annual ASIC Review Fee | $329/yr | Waived in year one; charged from first anniversary |
| Accounting & bookkeeping (basic) | $1,800–$2,100/yr | Quarterly BAS + annual company tax return |
| Total Year 1 | Approx. $2,800–$3,500 | Including registration + virtual office + basic accounting |
4. Ongoing Compliance Obligations
Registering is one thing. Staying compliant is another:
| Obligation | Frequency | Penalty for Late Compliance |
|---|---|---|
| ASIC Annual Review | Annually (anniversary of registration) | $93 after 1 month → $387 after 2 months → $4,440 + potential deregistration after 3 months |
| Solvency Resolution | Annually (with Annual Review) | Director liability risk if company later becomes insolvent |
| BAS lodgement | Quarterly | ATO penalties $210–$1,050 per period |
| Company tax return | Annually (post-financial year) | ATO interest + penalties |
| ASIC detail updates | Within 28 days of change | Director change: $387; address change: $83 |
| Director ID | One-off (mandatory from 2026) | Fine of $13,320 for non-compliance |
Recommendation: Use an ASIC Agent service like Sleek ASIC Agent ($180 first year / $300/yr renewal). They handle review reminders, director changes, address updates, and annual lodgement—so you never miss a deadline.
5. Offshore Setup: No Australian Address? No Resident Director?
Two hard ASIC requirements trip up offshore founders:
Requirement 1: Registered office must be an Australian physical address. → Solution: Virtual office. Sleek provides a Suite 302/13 Wentworth Ave, Sydney CBD address for $300/yr, including a digital mailroom. ASIC explicitly permits third-party registered addresses.
Requirement 2: At least one director ordinarily resident in Australia. → Solution: Nominee Director service. Sleek’s Offshore Company Formation package (AU$5,130+) includes:
- Nominee resident director ($2,500/quarter market value, included in the package)
- Sydney CBD registered address
- Full-year accounting, tax, and ASIC compliance
Real example: Mona Zoet (featured on Sleek’s website) registered her Australian company through RegPac—Sleek’s compliance partner—without ever setting foot in Australia. She runs the business from Singapore while Sleek manages all ASIC filings, the registered address, and annual compliance.
6. Recommended Launch Paths
Path A: You’re in Australia, have an address, have a TFN (PR/citizen/long-term visa) → Sleek Launch at $180 → register ABN yourself online → open a business bank account. Year 1: ~$800–$1,500 total.
Path B: In Australia, running a growing business ($75K–$500K turnover) → Sleek Grow at $2,100/yr: free company registration + dedicated accountant + monthly bookkeeping + quarterly BAS + annual company tax return.
Path C: Offshore, no Australian presence at all → Sleek Offshore at $5,130+: all-inclusive—company registration + nominee director + registered address + first-year accounting and tax. This is the shortest compliant path into the Australian market from overseas.
FAQ
Q: What’s the difference between an ACN and an ABN? An ACN (Australian Company Number, 9 digits) proves you’re a legally registered company. An ABN (Australian Business Number, 11 digits) proves you’re entitled to conduct business in Australia. One company can hold multiple ABNs for different business lines.
Q: Is there a minimum share capital requirement? No. You can incorporate with a single $1 share. The number of shares and their value is entirely your decision.
Q: Can a foreigner own 100% of an Australian company? Yes. However, FIRB (Foreign Investment Review Board) approval may be required if the company deals with agricultural land, sensitive sectors, or acquisitions above certain thresholds (generally $1,334 million for most industries). Consult a migration lawyer for specifics.
Q: Do I need a Director ID as an offshore director? Yes. Every company director—regardless of where they reside—must apply for a Director ID through ABRS. Foreign passport holders can apply online via myGovID verification.
Q: Can company losses offset my personal income tax? No. A Pty Ltd is a separate tax entity. Company losses can only be carried forward against future company profits. This is a key difference between Sole Trader and Pty Ltd—a sole trader can offset business losses against personal income.
Q: Do dormant companies still pay the ASIC Annual Review Fee? Yes. Until the company is formally deregistered, the $329 annual fee applies. If you no longer need the company, apply for voluntary deregistration rather than waiting for ASIC to forcibly deregister it (which comes with personal liability risks for directors).
Next Steps
If you’re ready to register, get a free quote from Sleek AU—30-day money-back guarantee. Sleek is an ASIC Registered Agent (47659), TPB Tax Agent (26131380), Xero Platinum Partner, ISO 27001:2022 certified, and a B Corp, serving 7,000+ Australian clients with a 4.8/5 Google rating (4,100+ reviews).
Need commercial lending or property finance alongside your new company? Browse Arrivau’s loan services or contact us for a personalised consultation.
This article contains affiliate links. You pay nothing extra, and we may earn a commission that supports this site. Arrivau Pty Ltd (ABN 81 643 901 599) is an ASIC Credit Representative (CRN 530978). This is general information only—consult a TPB-registered tax agent or qualified lawyer before making any business structure or tax decision.