How to Register a Business in Australia: The Complete 2026 Guide

Understanding Australian Business Structures

The first decision when you register business in Australia is choosing the right legal structure. Your choice affects everything from personal liability and tax obligations to regulatory requirements and how you can raise capital. Here are the five main business structures available in Australia.

Sole Trader

A sole trader is the simplest and least expensive structure. You operate the business in your own name (or a registered business name) and are personally responsible for all debts and obligations. Your personal assets are at risk if the business incurs liabilities. You do not need to register with ASIC; you simply apply for an ABN and, if trading under a name other than your own, register a business name. Income is taxed at individual rates.

Partnership

A partnership is an agreement between two or more people (up to 20 for most industries) to carry on a business together. Each partner shares in the profits, losses, and management according to the partnership agreement. Partners have unlimited personal liability for business debts, and each partner is liable for the actions of the other partners. Partnerships require an ABN and a business name registration if trading under a name other than the partners’ names.

Company (Pty Ltd)

A proprietary limited company (Pty Ltd) is a separate legal entity from its owners (shareholders). This is the most popular structure for businesses that want limited liability protection—shareholders are generally only liable up to the amount of their unpaid shares. To register a company in Australia, you lodge an application with ASIC, which issues an Australian Company Number (ACN). Companies must have at least one director who ordinarily resides in Australia, maintain a registered office address in Australia, and comply with ongoing ASIC reporting obligations. The base company tax rate for small businesses is 25%, while the standard rate is 30%.

Trust

A trust is a structure where a trustee holds and manages assets or operates a business on behalf of beneficiaries. Trusts are commonly used in Australia for asset protection and tax planning, as income can be distributed to beneficiaries in a tax-effective manner. The most common types are discretionary (family) trusts and unit trusts. Setting up a trust requires a trust deed prepared by a solicitor, and the trustee must register for an ABN. Trusts involve higher setup costs but offer considerable flexibility in income distribution.

Branch of a Foreign Company

A branch office allows a foreign company to operate directly in Australia without creating a separate legal entity. The foreign company registers with ASIC under Part 5B.2 of the Corporations Act 2001 and receives an Australian Registered Body Number (ARBN). Unlike a subsidiary, the parent company retains full legal and financial liability for the branch’s activities. A local agent who is an Australian resident must be appointed, and the branch must maintain a registered office in Australia.

Choosing the right structure has long-term implications for your tax position, liability exposure, and ability to grow. If you want to register a company in Australia and are unsure which structure fits your situation—particularly if you are a foreign company entering the Australian market—professional advice at this stage can save significant time and cost down the track.

Step-by-Step: How to Register a Business in Australia

Now that you understand the available structures, here is the step-by-step process to register business in Australia. While the exact steps vary depending on your chosen structure, most businesses will follow this general sequence.

Step 1: Choose Your Business Structure

Decide whether you will operate as a sole trader, partnership, company, trust, or foreign branch. Consider your risk tolerance, tax position, growth plans, and whether you need to raise external capital. For foreign companies, the decision usually comes down to branch office versus Australian subsidiary (Pty Ltd). Each has distinct advantages depending on your commercial objectives and tax treaty position.

Step 2: Register for an Australian Business Number (ABN)

An ABN is a unique 11-digit identifier issued by the Australian Business Register. It is free to apply for and is required for most business activities, including invoicing, claiming GST credits, and avoiding PAYG withholding. You can apply online through the Australian Business Register. Australian residents typically receive their ABN immediately, while foreign applicants may need additional documentation and wait several business days.

Step 3: Register a Business Name with ASIC

If you want to trade under a name other than your personal name (for sole traders and partnerships) or your registered company name, you need to register business name Australia-wide through ASIC. Business name registration costs $39 for one year or $92 for three years. You can check name availability and register online through the ASIC Connect portal. Your business name must be renewed before it expires, or it becomes available for others to register.

Step 4: Register a Company with ASIC (If Applicable)

If you have chosen to operate as a company (Pty Ltd), you must register with ASIC. The fee is $611, and the process can be completed online in as little as a few hours. You will need the proposed company name, registered office address, details of directors and shareholders, share structure, and signed consent from each director. Upon registration, ASIC issues an ACN and certificate of registration. For foreign company registration, additional documentation is required, including certified copies of incorporation documents from the home country.

Step 5: Register for GST

GST registration is mandatory if your business has an annual turnover of $75,000 or more ($150,000 for non-profits). Even below the threshold, you may register voluntarily to claim input tax credits. GST registration is free and can be done alongside your ABN application or later through the Australian Taxation Office (ATO). Once registered, you must charge GST on taxable supplies, lodge Business Activity Statements (BAS), and remit GST to the ATO.

Step 6: Register for PAYG Withholding (If Hiring Employees)

If you plan to hire employees, you must register for Pay As You Go (PAYG) withholding with the ATO to withhold tax from employee payments. Registration is free and completed online. Employers must also pay superannuation (currently 12% of ordinary time earnings) and may benefit from employer of record services if they lack a local payroll function.

Step 7: Obtain Necessary Licences and Permits

Depending on your industry and location, you may need additional licences or permits issued at the federal, state, or local government level. Common examples include food handling permits, building licences, financial services licences (AFSL), and import/export permits. The Australian Business Licence and Information Service (ABLIS) can help identify which licences apply.

Step 8: Set Up Business Banking

All businesses should open a dedicated business bank account to separate personal and business finances. Australian banks require an ABN and identification for all directors or signatories. For foreign companies, opening an Australian bank account can be complex—our banking support services help international businesses navigate Australian banking and AML compliance requirements.

Business Registration Costs in Australia (2026)

Understanding business registration costs Australia-wide helps you budget correctly from the outset. Government fees are generally modest, but professional services fees—particularly for foreign companies—can add up. Here is a breakdown of the key costs to register business in Australia for 2026.

For Australian residents registering a sole trader business, the total cost can be as low as $39 (for a business name registration) plus your time. Registering a company costs $611 in government fees plus any professional services you engage. Foreign companies should budget $4,000–$6,000 for a branch registration or $1,500–$3,000 for a subsidiary, including professional fees for document preparation, lodgement, and ABN and GST registration.

Keep in mind that these are one-off registration costs. Ongoing costs include ASIC annual review fees ($329), accounting and tax compliance, and any resident director or local agent service fees if you are a foreign company.

Registering a Foreign Company in Australia

Australia is one of the most attractive destinations for international business expansion. It offers a transparent regulatory environment, strong rule of law, a skilled English-speaking workforce, and a strategic location at the crossroads of the Asia-Pacific region. If you are a foreign company looking to register a business in Australia, there are specific requirements and pathways you need to understand.

Why Foreign Companies Choose Australia

• Stable economy: Australia has experienced more than 30 years without a recession (prior to 2020) and maintains one of the highest GDP per capita levels globally.
• Asia-Pacific gateway: Australia’s time zone, trade agreements, and geographic proximity make it an ideal base for accessing markets across Asia, New Zealand, and the Pacific.
• Strong legal protections: The Australian legal system provides robust protections for intellectual property, contract enforcement, and foreign investment.
• Extensive tax treaty network: Australia has double taxation agreements with over 45 countries, reducing the risk of being taxed twice on the same income.
• Skilled workforce: Access to a highly educated, multicultural workforce with strong English proficiency.

Two Main Options: Branch vs Subsidiary

Foreign companies entering Australia typically choose between two structures:

Option 1: Branch Office (Registered Foreign Company)

A branch office is an extension of your existing foreign company. You register with ASIC using Form 402 and receive an ARBN. The branch operates under the parent company’s name and liability. This option is preferred when the parent wants direct control, operations are project-based, or tax treaty benefits favour a branch structure. Registration typically takes 2–4 weeks and requires certified constitutional documents, a certificate of registration from the home country, and details of local agents.

Option 2: Australian Subsidiary (Pty Ltd)

A subsidiary is a new, separate Australian company owned (wholly or partly) by the foreign parent. It provides limited liability protection for the parent company and is treated as a domestic entity for most purposes. Registration can be completed in 1–3 business days and is generally the preferred option for foreign companies that want to present an Australian identity, access government contracts, or limit the parent company’s exposure to Australian liabilities.

Requirements for Foreign Companies

• Local Agent (Branch): Every registered foreign company must appoint a local agent who resides in Australia. The local agent is responsible for compliance with the Corporations Act and can be held personally liable for certain breaches.
• Resident Director (Subsidiary): Australian companies must have at least one director who ordinarily resides in Australia (must ordinarily reside in Australia). If you do not have a suitable person in Australia, a professional resident director service can fulfil this requirement.
• Registered Office: Both branches and subsidiaries must maintain a registered office address in Australia where ASIC correspondence and legal documents can be received during business hours.
• Director Identification Number (Director ID): All directors of Australian companies (and local agents of foreign companies) must obtain a Director ID through the Australian Business Registry Services.
• ABN and Tax Registrations: Both branches and subsidiaries need an ABN and, in most cases, GST and PAYG registrations.

Ongoing Compliance Obligations

Registration is only the beginning. Foreign companies operating in Australia must comply with ongoing obligations including:

• ASIC annual review and fee payment ($329/year)
• Lodging financial statements with ASIC (for large proprietary companies and all foreign company branches)
• Maintaining accurate registers of members, directors, and officeholders
• Notifying ASIC of changes to company details within prescribed timeframes
• Lodging annual tax returns and Business Activity Statements with the ATO
• Complying with the Corporations Act 2001, anti-money laundering laws, and industry-specific regulations

Our ASIC compliance services ensure your company remains in good standing with all regulatory obligations.

Essential Registrations After Setting Up

Once you have completed your initial business registration in Australia, there are several additional registrations and steps to address. Missing any of these can result in penalties, gaps in insurance coverage, or legal exposure.

Tax File Number (TFN)

Every business entity in Australia needs a Tax File Number. For companies, the TFN is issued separately from the ABN and is used for lodging tax returns and managing tax obligations with the ATO. You can apply for a TFN at the same time as your ABN or separately through the ATO.

Workers’ Compensation Insurance

If you employ anyone in Australia, workers’ compensation insurance is mandatory in every state and territory. The requirements and providers vary by jurisdiction (e.g., icare in NSW, WorkSafe in Victoria). Failing to have adequate coverage can result in substantial fines and personal liability for directors.

Domain Name and Trademark Registration

Securing a .com.au domain name requires an ABN or ACN, so this is typically done after business registration. You should also consider registering your business name and logo as a trademark with IP Australia to protect your brand. Trademark registration provides exclusive rights to use the mark Australia-wide and is distinct from business name registration with ASIC.

State and Territory Licences

Many industries require state or territory-specific licences or registrations in addition to federal requirements. Examples include real estate agent licences, electrical contractor licences, liquor licences, and childcare provider approvals. Requirements vary significantly between states, so check with the relevant state or territory government authority for your industry.

Superannuation for Employees

Australian employers must pay superannuation (retirement fund contributions) for eligible employees at a rate of 12% of ordinary time earnings (as of 1 July 2025). You must choose a default MySuper fund, offer employees the choice of fund, and make contributions at least quarterly. Non-compliance incurs the Superannuation Guarantee Charge, which includes interest and administrative penalties.

Common Mistakes When Registering a Business in Australia

Avoiding these common errors can save you time, money, and legal headaches. Whether you are a local entrepreneur or a foreign company, understanding these pitfalls before you register business in Australia will help ensure a smoother process.

1. Choosing the Wrong Business Structure

Many business owners default to the simplest structure (sole trader) without considering long-term implications for liability, tax, and growth. Changing structures later can trigger capital gains tax, stamp duty, and significant costs. Get professional advice upfront, particularly if you are a foreign company deciding between a branch and subsidiary. The right structure advice at the beginning can save tens of thousands of dollars.

2. Forgetting the GST Registration Threshold

Businesses that exceed $75,000 in annual turnover must register for GST. Some businesses fail to monitor their turnover and miss the deadline, resulting in backdated GST obligations and penalties. If you are approaching the threshold, register proactively. Conversely, avoid registering voluntarily when turnover is well below the threshold, as it creates unnecessary BAS reporting obligations.

3. Not Getting Proper Advice for Foreign Company Registration

Foreign companies often underestimate the complexity of operating in Australia. Requirements for local agents, resident directors, registered office addresses, and ongoing ASIC compliance are mandatory—not optional. Operating without proper registration can result in penalties exceeding $22,000 for the company and personal fines for directors. Engaging a specialist like AusBusinessRegister from the outset ensures you meet all obligations from day one.

4. Skipping Director ID Requirements

Since April 2022, all directors of Australian companies (and local agents of registered foreign companies) must obtain a Director Identification Number. This is a personal obligation that cannot be delegated. Directors who fail to obtain a Director ID face penalties of up to $13,200, and intentionally providing false information can result in criminal charges. Apply through the Australian Business Registry Services using your myGovID.

5. Not Understanding Ongoing ASIC Compliance

Registering a company is not a one-off event. Companies must pay annual review fees, update ASIC of changes within 28 days, and lodge annual financial reports if required. Foreign company branches must also file home-jurisdiction financial statements. Failure to maintain compliance can lead to late fees, penalties, and deregistration. Our corporate secretarial services handle these obligations so you can focus on running your business.

6. Not Separating Personal and Business Finances

Mixing personal and business finances creates accounting headaches, complicates tax reporting, and can undermine the limited liability protection of a company structure. Open a dedicated business bank account from the start and use it exclusively for business transactions. This discipline makes tax time simpler and provides a clearer picture of your business’s financial performance.

Frequently Asked Questions About Registering a Business in Australia