Company Incorporation in Australia

Australia welcomes business visa entrants, franchisors, investors, and expatriates for business. Choose a business structure, register for Australian Business Number (ABN), set record keeping and accounting systems, and get insurance.

How To Incorporate A Business In Australia?

Incorporating a Company in Australia is quick, easy, and can be done online with Vakilsearch in 3 simple steps:

We address all your queries about Company Incorporation in the Australia.

Step 1

We help you get the entire process of filing and registration completed.

Step 2

We help you with the post-registration formalities and compliances.

Step 3

Company Incorporation in Australia - An Overview

A number of business structures are available in Australia and each has its own regulations. You need to consider certain important factors if you are planning to register a company in Australia. Here, the business owners need to select from the options of incorporating a foreign company, a new company or taking over an existing company.

Types of business entities in Australia.

1. Sole Proprietorship :

Establishing a sole proprietorship business in Australia is easy and cost-effective. In this type of business, the owner has complete responsibility for the entire business operations on his soldiers. He is solely responsible for all the loss and debts occurring from the sole proprietorship business. The owner is the manager and controller of the entire sole-proprietorship business. He is solely accountable to file income tax returns with the help of his TFN (Tax File Number).

2. Limited Liability Company :

This type of a company has a slightly complex structure. It is regarded as a separate legal entity. The shareholders and directors are not held personally responsible for any liability or debt arising out of company operations. The directors are responsible only for the normal business operations of the company.

In Australia, the registration of such a company can be done through the ASIC ( Australian Securities and Investments Commission). The company needs to file its tax returns annually with the ATO.

3. Partnership firm :

In this business structure, two or more people collaborate to start a partnership business. In Australia, the maximum number of partners allowed to constitute a partnership firm is 20.

In general, two types of such business structures exist in Australia- Limited and General partnership firms. Forming a partnership firm is cheap and easy in Australia. However, the partnership firm is not regarded as a separate legal entity. This means, all the partners of the firm are individually liable for liabilities and debts incurred during normal business operations.

The firm needs to file its annual tax returns with the ATO (Australian Tax Office) and an individual Tax File Number is required for this purpose. Instead of the company name, it can also use the ACN ( Australian Company Number) allotted to it. It is mandatory to have GST registration if the annual turnover for the partnership firm is over $75,000.

Benefits of incorporating a company in Australia

Lower tax rates - Small Proprietary Limited Companies pay a corporate tax of 27.5%, which is considerably lower than the highest tax rate for individuals, which currently stands at 49 percent at the highest bracket. Thus, conducting business through a private limited company enables you to reduce your firm’s overall tax bill in Australia.

Access to the Australian Market - Incorporating a company in Australia allows you to take advantage of Australia’s large, mixed-market economy. With a 24.6 million population and a GDP per capita of US$53,799.94 as of 2019, the country offers some of the most diverse and lucrative market opportunities in the world. In addition, operating in Australia allows you to take advantage of the numerous free trade agreements, offering truly enormous potential as a foreign investor, with access to Europe, Asia, and America.

Anonymity - One of the best advantages of incorporating a private limited company in Australia is that under Chapter 6D of the Corporations Act 2001, the company is not required to disclose its investors or shareholders. As a business owner, this allows for greater levels of anonymity when operating a business. As regulatory burden is much lower you are able to conduct business freely and without the threat of competition stealing your customers.

How to register a company in Australia?

  • Company name - Before applying for registration of a company in Australia, it is important to check for the availability of the proposed name. It is essential that you select a simple and unique name for your company which is not abusive and does not have any spelling mistakes.A proprietary company should necessarily have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its name. The company can use the Australian Company Number (ACN) given to the company as their name. ACN is a unique number which is given to a company by ASIC.
  • Filing the application form - In this step, the Application Form 201 is filed with the ASIC. This is required for registration as an Australian company by the ASIC. Along with the duly filled for, every shareholder and director must submit their written consent for becoming the shareholder and director of the company. Also, it is mandatory that at least one company secretary and one director should be Australian citizens. The company must ensure compliance with the laid down requirements related to taxation.
  • Each director and shareholder of the company must give their consent in writing to become the director and shareholder of the company.
  • It is mandatory to have one director and one company secretary (If appointed) as Australian citizens.
  • Depending upon the business and location of the company, the company must comply with the respective taxation requirements.
  • The Australian Securities & Investments Commission (ASIC) issues the certification of incorporation to companies. This is a legal evidence to show that the company has been well and truly incorporated with effect from the date of issue.

Why Vakilsearch

4 Business Days

At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.