Company Registration in Australia

Australia is a highly attractive destination for entrepreneurs, startups, and foreign investors looking to establish a business presence in the Asia-Pacific region. With a robust legal system, transparent regulatory framework, and a stable economy, registering a company in Australia provides access to a dynamic and well-regulated business environment.

The Australian government encourages both domestic and international businesses by offering streamlined company registration procedures, protection of intellectual property rights, and access to international trade agreements. Whether you're an Australian resident or a foreign national, setting up a company is straightforward with digital registration and clearly defined compliance requirements governed by the Australian Securities and Investments Commission (ASIC).

Choosing the right business structure, understanding legal obligations, and ensuring compliance with local tax laws are essential for a successful registration. With the right guidance, forming a company in Australia can be a smooth and strategic step towards expanding your business footprint.

Types of Business Entities For Company Registration in Australia

When registering a company in Australia, choosing the right business structure is crucial. Each entity type comes with different legal, tax, and compliance obligations. Below are the main types of business entities available:

1. Sole Trader

• Owned and operated by one individual

• Easy and inexpensive to set up

• The owner is personally liable for debts and obligations

• Suitable for freelancers, consultants, and small businesses

2. Partnership

• Two or more individuals or entities operate a business together

• Shared profits, responsibilities, and liabilities

• Must have a partnership agreement

• Not a separate legal entity – partners are personally liable

3. Company (Pty Ltd) – Private Company Limited by Shares

• Separate legal entity from its owners

• Limited liability for shareholders

• Most common structure for both local and foreign investors

• Requires at least one Australian resident director

• Regulated by ASIC and must meet ongoing compliance obligations

4. Public Company (Ltd)

• Can raise funds from the public (e.g., via the stock exchange)

• Must have at least 3 directors, 1 resident in Australia

• Subject to stricter compliance and reporting requirements

• Suitable for larger businesses or those seeking public investment

5. Trust

• A legal relationship where a trustee holds assets on behalf of beneficiaries

• Used for tax planning, asset protection, and investment purposes

• Can be a discretionary trust or a unit trust

• Must have a trust deed and may need to register with the ATO

6. Branch of a Foreign Company

• Allows an overseas company to operate directly in Australia

• Must register as a foreign company with ASIC

• Must appoint a local agent and maintain a registered office in Australia

• Subject to Australian tax and reporting obligations

7. Joint Venture

• A business agreement between two or more parties for a specific project

• Can be incorporated (new company) or unincorporated

• Common in sectors like mining, construction, and R&D

Eligibility Criteria for Company Registration in Australia

To register a company in Australia, whether as a resident or a foreign individual/entity, certain basic requirements must be met. These criteria ensure that the company complies with the regulations set by the Australian Securities and Investments Commission (ASIC).

 1. Minimum Number of Directors

• Private Company (Pty Ltd):
  Must have at least one director who is ordinarily a resident of Australia.

• Public Company:
  Must have at least three directors, with at least two residing in Australia.

 2. Shareholders

• Can have 1 or more shareholders (individuals or corporate bodies).

• Both residents and non-residents can be shareholders.

• A person can be both a shareholder and a director.

 3. Registered Office Address

• Must have a registered office address in Australia.

• The address cannot be a P.O. Box.

• For foreign-owned companies, a local agent or service provider may offer a registered address.

 4. Company Name

• The name must be unique and available for registration.

• Must not be identical or too similar to an existing registered name.

• Some words (like “bank”, “trust”, etc.) require special approval.

 5. Constitution or Replaceable Rules

• You must decide whether the company will:

  • Operate under replaceable rules (provided by the Corporations Act), or

  • Use a custom constitution outlining internal governance.

 6. Australian Business Number (ABN)

• After company registration, an ABN is required to legally operate and register for taxes.

• ABN can be applied for through the Australian Business Register (ABR).

 7. Local Agent (For Foreign Companies)

• Foreign companies registering as a branch office must appoint a local agent.

• The agent is responsible for ensuring compliance with Australian regulations.

 8. No Legal Restrictions

• Directors and shareholders must not be:

  • Insolvent or bankrupt

  • Disqualified from managing a corporation

  • Involved in fraudulent or criminal activity

Procedure for Company Registration in Australia

Registering a company in Australia is a straightforward process managed by the Australian Securities and Investments Commission (ASIC). Below is a step-by-step guide for both local and foreign applicants:

 Step 1: Choose a Business Structure

• Most common: Private Company Limited by Shares (Pty Ltd)

• Other options: Public company, sole trader, partnership, trust, or branch of a foreign company

 Step 2: Choose a Company Name

• Must be unique and not already registered

• Use ASIC’s name availability check to verify

• Optional: Register a trading/business name if different from the company name

 Step 3: Decide on Company Governance

Choose one of the following:

• Use replaceable rules (standard rules provided by the Corporations Act), or

• Create and adopt a custom constitution (more flexible for complex structures)

 Step 4: Appoint Directors and Shareholders

• Minimum 1 director (must be an Australian resident)

• Shareholders can be individuals or entities (residents or non-residents)

• Obtain written consent from each director and secretary

 Step 5: Register a Business Address

• Must have a registered office address in Australia (not a P.O. Box)

• For foreign companies, a local agent’s address can be used

 Step 6: Submit Company Registration Application

• Apply through:

  • A registered ASIC agent, or

  • Directly via the Offical Site

• Information needed:

  • Company name

  • Governance type

  • Details of directors/shareholders

  • Registered office address

  • Share structure

• Fee (as of 2025): Around AUD 576 for a standard Pty Ltd

 Step 7: Receive Certificate of Registration

• Issued by ASIC with:

  • ACN (Australian Company Number)

  • Legal confirmation of your company’s existence

 Step 8: Apply for an ABN (Australian Business Number)

• Register via the Offical Site

• Required to:

  • Operate legally

  • Invoice clients

  • Register for GST and other taxes

 Step 9: Register for Taxes with ATO

Depending on your business:

• GST – mandatory if turnover exceeds AUD 75,000 annually

• PAYG withholding – if hiring employees

• Fringe Benefits Tax (FBT) – if applicable

• Corporate Tax File Number (TFN) – required for company tax returns

 Step 10: Open a Corporate Bank Account

• Required to separate personal and business finances

• Most banks require director verification and company documents

Various Taxes Applicable to Registered Companies in Australia

After registering a company in Australia, businesses must comply with taxation requirements administered primarily by the Australian Taxation Office (ATO). Understanding these taxes is critical for ongoing compliance and financial planning.

1.  Corporate Income Tax

• Standard rate: 30%

• Base rate entities (small businesses): 25%
  (Applicable if turnover is under AUD 50 million and 80% or less of income is passive)

• Taxable income includes global income for resident companies and Australian-sourced income for non-resident companies.

2.  Goods and Services Tax (GST)

• Rate: 10% on most goods and services sold or consumed in Australia

• Mandatory Registration: If annual turnover exceeds AUD 75,000

• GST returns are usually submitted monthly or quarterly

3.  Pay As You Go (PAYG) Withholding

• Employers must withhold tax from:

  • Employee wages

  • Contractor payments (if under withholding rules)

• Withheld amounts must be reported and remitted to the ATO regularly

4.  Fringe Benefits Tax (FBT)

• Tax on non-cash employee benefits (e.g., company car, housing, entertainment)

• Paid by the employer

• Rate: 47% (as of FY 2025) on the grossed-up taxable value of benefits

5.  Payroll Tax

• A state-based tax on wages paid by employers

• Thresholds and rates vary by state (e.g., NSW, Victoria, Queensland)

• Applies when total wages exceed the state’s exemption threshold

6.  Capital Gains Tax (CGT)

• Applies to profits from the sale of assets such as property, shares, or business goodwill

• Incorporated into the income tax system — capital gains are included in assessable income

7.  Withholding Tax on Payments to Foreign Entities

• Applies to certain payments made to non-residents, such as:

  • Dividends

  • Interest

  • Royalties

• Rates may be reduced under Double Taxation Agreements (DTAs) with various countries

8.  Tax File Number (TFN)

• Required for lodging income tax returns

• Applied for after registration through the ATO

9.  Business Activity Statement (BAS)

• A summary report for GST, PAYG, FBT, and other tax obligations

• Lodged monthly, quarterly, or annually depending on turnover

Documents Required for Company Registration in Australia

Whether you're a local entrepreneur or an international investor, you must prepare specific documents to comply with the Australian Securities and Investments Commission (ASIC) requirements.

 1. Identification Documents

For Individuals (Directors & Shareholders):

• Passport copy (for foreign nationals)

• Driver’s license or national ID (for Australian residents)

• Proof of address (utility bill, bank statement, or government-issued document)

For Corporate Shareholders:

• Certificate of Incorporation

• Company constitution or Articles of Association

• Board resolution authorizing investment in the Australian company

 2. Consent to Act

• Consent to Act as a Director – signed declaration from each appointed director

• Consent to Act as a Secretary (if appointed)

 3. Registered Office Address Details

• Proof of address (e.g., lease agreement, ownership document, or service provider agreement)

• Consent from the property owner if the office is not owned by the company

 4. Company Name Details

• Preferred company name(s)

• Business name registration documents (if applicable)

 5. Company Constitution (if using one)

• Optional if operating under replaceable rules

• Custom constitutions must be prepared and signed

 6. Shareholder & Share Capital Details

• Number and class of shares to be issued

• Shareholder names, addresses, and shareholding percentages

• Payment terms for share capital (fully paid or partly paid)

 7. Local Agent Details (for Foreign Companies Only)

• Name and contact details of the authorized local agent

• Consent to act as the agent (must be a resident of Australia)

 8. Business Activity Description

• A brief outline of the intended business operations

• Industry classification (used during ABN registration)

 9. Foreign Company Documents (for branch setup)

• Certified copy of the foreign company’s certificate of incorporation

• Memorandum & Articles of Association (or similar governing documents)

• Notarized translation if not in English

Benefits of Company Registration in Australia

Registering a company in Australia offers numerous advantages, both for local entrepreneurs and international investors. The country’s transparent legal framework, strong economy, and strategic location in the Asia-Pacific region make it an ideal destination for business growth and expansion.

 1. Limited Liability Protection

A registered company is a separate legal entity, which means:

• Shareholders are not personally liable for the company’s debts

• Personal assets are protected from business liabilities

 2. Credibility and Professional Image

• A registered company, especially a Pty Ltd, enhances trust with clients, investors, and suppliers

• Builds brand reputation and increases chances of securing contracts

 3. Access to Global and Local Markets

• Australia has free trade agreements with countries like China, the USA, Japan, and ASEAN nations

• Registration allows access to government tenders, local partnerships, and public contracts

 4. Tax Efficiency and Business Deductions

• Companies enjoy a competitive corporate tax rate (25% for base rate entities)

• Eligible to claim business-related tax deductions, asset depreciation, R&D tax incentives, etc.

 5. Perpetual Succession

• A company continues to exist regardless of changes in ownership or management

• Offers business continuity and is easier to sell or transfer compared to other structures

 6. Ease of Raising Capital

• Companies can raise funds by issuing shares to investors

• Easier to attract venture capital and private equity investments

 7. Clear Ownership and Legal Structure

• Defined roles of directors, shareholders, and company officers

• Enables better governance and accountability

 8. Protection of Business Name

• Once registered, the company name is legally protected under ASIC

• Prevents other businesses from registering the same or similar name

 9. Access to Skilled Workforce

• Australia has a highly educated and diverse workforce

• Registered companies can sponsor skilled foreign workers under various visa programs

 10. Opportunity for Foreign Investors

• Foreign nationals and companies can fully own an Australian company

• Option to set up subsidiaries, branches, or joint ventures

Why Choose YKG GLOBAL for Company Registration in Australia?

Setting up a company in Australia is an exciting opportunity—but navigating legal requirements, compliance, and cross-border challenges can be complex. At YKG GLOBAL, we simplify the process and ensure your company is registered swiftly, compliantly, and strategically.

 1. Over 40 Years of Global Business Experience

With a legacy dating back to 1981, YKG GLOBAL has assisted 5,000+ businesses worldwide. Our proven track record across industries and jurisdictions ensures you’re in safe hands.

 2. End-to-End Company Setup Support

We manage everything from:

• Company registration with ASIC

• ABN, TFN, and GST registration

• Bank account opening assistance

• Constitution drafting

• Resident director/agent provision (for foreign companies)

 3. Expertise in Foreign-Owned Company Registration

We specialize in helping non-residents and overseas corporations establish a presence in Australia, including:

• 100% foreign-owned Pty Ltd companies

• Australian branches of global firms

• Subsidiary registration and compliance

 4. Compliance-First Approach

Australia’s regulatory framework is strict. We ensure:

• Full compliance with ASIC, ATO, and ABR

• Timely tax registrations and filings

• Ongoing corporate secretarial support

 5. Strategic Business Advisory

YKG GLOBAL goes beyond registration—we advise on:

• The most suitable business structure

• Local market entry strategies

• Tax planning and legal risk mitigation

 6. Transparent Pricing & Fast Turnaround

• No hidden costs

• Timely document delivery

• Quick turnaround with dedicated case managers

 7. Global Presence, Local Knowledge

We operate in 20+ countries, with on-ground associates in Australia for legal, tax, and corporate matters—ensuring both international expertise and local compliance.

 8. Value-Added Services

• Trademark registration

• Virtual office setup

• Corporate bank introduction

• Resident director service

• Accounting, audit, and legal advisory