How to Start a Company in Australia: Step-by-Step Guide

How to Start a Company in Australia: Step-by-Step Guide

Australia is known for its stable economy, high quality of life, and business-friendly environment. With access to Asian and global markets, strong infrastructure, and supportive government policies, it’s an attractive destination for entrepreneurs. Whether you’re a local or a foreign investor, starting a company in Australia can be straightforward if you follow the right steps.

Why Start a Business in Australia?

  • Strong economy – One of the world’s most stable and resilient economies.
  • Proximity to Asia-Pacific markets – Ideal for trade and export.
  • Business-friendly policies – Clear regulations and support for startups.
  • Skilled workforce – Highly educated, English-speaking talent pool.
  • Access to funding – Government grants, loans, and venture capital.
  • High quality of life – Attractive for relocating business owners and employees.

Step 1: Choose Your Business Structure

Common business structures in Australia include:

  • Sole Trader – Simplest form, but owner has unlimited liability.
  • Partnership – Shared ownership; partners have joint liability.
  • Company (Proprietary Limited / Pty Ltd) – Separate legal entity; liability protection.
  • Trust – Often used for family businesses or tax planning.

Most foreign entrepreneurs and investors choose a Pty Ltd company for liability protection and credibility.

Step 2: Register Your Business Name

  • Must be unique and approved by ASIC (Australian Securities and Investments Commission).
  • For a company, the name registration is included in the company incorporation process.
  • For sole traders or partnerships, separate registration is required.

Step 3: Apply for an Australian Business Number (ABN)

The ABN is essential for:

  • Registering for taxes (GST, PAYG withholding).
  • Opening a business bank account.
  • Issuing invoices and conducting trade legally.

Foreigners can apply for an ABN if they meet certain criteria.

Step 4: Register Your Company

  • Submit application to ASIC with required details:
    • Company name
    • Registered office in Australia
    • Directors’ and shareholders’ information
    • Constitution (optional for small companies)
  • Once approved, you’ll receive a Certificate of Incorporation.

Step 5: Register for Taxes

  • Goods and Services Tax (GST) – Mandatory if turnover exceeds AUD 75,000/year.
  • Pay As You Go (PAYG) withholding – For employees.
  • Fringe Benefits Tax (FBT) – If applicable.
  • Corporate income tax – Standard rate is 25–30% depending on turnover.

Step 6: Open a Corporate Bank Account

Requirements:

  • Company registration certificate
  • ABN
  • Identification for directors/shareholders

Step 7: Obtain Licenses & Permits

Depending on your industry, additional licenses may be required. Examples:

  • Food or beverage
  • Finance or insurance
  • Healthcare or professional services
  • Import/export

Step 8: Comply with Ongoing Obligations

  • File annual company statements with ASIC.
  • Lodge corporate tax returns with the Australian Taxation Office (ATO).
  • Maintain proper financial records and bookkeeping.

Costs & Timeline

  • Company registration: AUD 538 (ASIC fee for Pty Ltd).
  • ABN registration: Free.
  • Legal/accounting support: AUD 1,000 – 3,000+ if using a professional.
  • Timeline: Usually 1–2 weeks for company incorporation.

Final Thoughts

Australia is a prime destination for business due to its economic stability, strong infrastructure, and access to global markets. With the right planning and professional guidance, starting a company in Australia can be smooth and provide long-term growth opportunities.

For foreign entrepreneurs, consulting a local accountant or business advisor ensures compliance with legal, tax, and visa requirements.