Starting a Company in Australia
Setting up a business here isn't as complicated as it seems. But there are details that matter. We've helped hundreds of business owners navigate the formation process, and these are the questions they ask most often.
Common Starting Points
Most people starting out have similar concerns. These aren't just technical questions – they're about making sure you're doing things properly from day one.
How long does company registration actually take?
Once everything's submitted correctly, ASIC typically processes registrations within 1-2 business days. The real timeline depends on how prepared you are. If your documents are in order and you've sorted out your company name availability, it's quick. Problems happen when people rush the preparation stage.
What's the minimum number of directors needed?
You need at least one director who lives in Australia. That's the legal requirement. If you're setting up a proprietary company (Pty Ltd), which most small businesses do, one director works fine. Public companies need three, but that's a different conversation entirely.
Can I use my home address for the business?
Yes, and many people do when they're starting out. Your registered office address becomes part of the public record though. Some business owners prefer using an accountant's address or a virtual office service to keep their home address private.
Do I need an ABN right away?
You'll want to apply for your ABN at the same time you register the company. The application is free and happens through the same system. Having an ABN from the start makes opening bank accounts and dealing with suppliers much simpler.
What happens if my chosen name is taken?
ASIC won't approve a name that's identical or too similar to an existing registered business. Before you get attached to a name, check the ASIC register. It's worth having 2-3 backup options ready. We've seen people delay their entire registration process by weeks because they didn't prepare alternatives.
Are there ongoing compliance requirements?
Every year you'll need to pay an annual review fee to ASIC (currently around $310 for most companies). You also need to maintain proper financial records and hold required meetings if you have multiple shareholders. It's not overwhelming, but it does require attention.
Structure and Setup Details
Choosing between Pty Ltd and other structures
Most small to medium businesses in Australia go with a Pty Ltd structure because it offers liability protection. Your personal assets stay separate from business debts. But it does come with more regulatory requirements than a sole trader setup. The right choice depends on your growth plans and risk tolerance.
Understanding share structures from the start
When you register, you'll need to decide on your initial share allocation. Even if you're the only shareholder, getting this right matters for future planning. Bringing in partners or investors later becomes simpler when your share structure makes sense. We typically recommend keeping it straightforward initially.
Appointing company officers correctly
Directors and secretaries have specific legal responsibilities. You can't just nominate someone without their knowledge – they need to formally consent. Each officer must meet eligibility requirements, including being at least 18 and not being disqualified from managing corporations.
Setting up your company constitution
You can adopt the standard replaceable rules that come with the Corporations Act, or create a custom constitution. For most small businesses, the replaceable rules work fine. Custom constitutions make sense when you have specific ownership arrangements or want particular governance structures.
What Actually Happens During Registration
People often think there's some mysterious process happening behind the scenes. There isn't. Here's what actually occurs when you submit your company registration.
Name reservation and checking
ASIC runs your proposed name through their database checking for conflicts. They're looking at registered companies, business names, and trademarks. If there's any similarity that could cause confusion, they'll reject it. This happens automatically within their system.
Document verification and validation
All your submitted information gets verified against their requirements. Director details, addresses, share allocations – everything needs to match their format and meet legal standards. Errors here are the most common reason for delays.
ACN assignment and registration
Once approved, ASIC assigns your Australian Company Number. This becomes your company's permanent identifier. At this point, your company legally exists. You'll receive your certificate of registration, which you'll need for opening bank accounts.
ABN integration and tax registration
If you applied for an ABN simultaneously, the systems link together. Your company details flow through to the Australian Business Register. You're now set up in both systems, which means you can start operating properly.
Still have specific questions about your situation?
Every business is different. The details that matter for a tech startup aren't the same as what matters for a consulting practice or a retail business.
We're based at Suite 13.06, Level 13/256 Adelaide Terrace in Perth, and we've been helping people sort through these questions since we started. Sometimes a quick conversation clears up confusion that online reading can't.
Talk to Us About Your Setup