Cost of Company Registration in Australia: Essential Guide

Thinking about setting up a company in Australia? It’s an exciting step, and getting clear on costs early will help you budget smartly and launch with confidence.

From the ASIC application fee to legal documents, business names and ongoing compliance, there are a few moving parts to consider. The good news is that once you understand what you’re paying for (and why), you can choose the set-up path that fits your goals, timing and budget.

In this guide, we break down the cost of company registration in Australia, what ongoing fees to expect, and where it’s worth investing in legal foundations to prevent expensive headaches later.

What Does Company Registration Involve In Australia?

When people talk about “registering a company” in Australia, they’re usually referring to incorporating a proprietary limited company (Pty Ltd) with the Australian Securities and Investments Commission (ASIC). A company is a separate legal entity. That separation is powerful: it can enter contracts, own assets and incur liabilities in its own name, which helps shield your personal assets if something goes wrong.

A company structure isn’t the only option (you could operate as a sole trader or partnership), but many founders choose a Pty Ltd because it offers limited liability, credibility with customers and investors, and more flexible ownership options.

At a glance, registering a company involves:

• Choosing a company name (or using an ACN as your name at first)
• Appointing at least one director who ordinarily resides in Australia
• Setting your share structure and issuing shares to shareholders
• Nominating a registered office and principal place of business
• Paying the ASIC application fee and receiving an Australian Company Number (ACN)

Directors also need to understand their duties and how documents can be executed on the company’s behalf. Many companies rely on section 127 signing rules for smooth execution of contracts from day one.

How Much Does It Cost To Register A Company?

Your company registration cost has a few components. Some are fixed (like government fees), and others depend on the support and documents you choose.

1) ASIC Registration Fee

ASIC charges a fee to register a new proprietary company. This fee is indexed annually on 1 July, so it changes from year to year. At the time of writing, founders typically budget around the mid-hundreds for the initial ASIC application.

Because ASIC fees are adjusted each financial year, it’s smart to check the current amount before you apply (and to plan for yearly changes). For context and updates, see Sprintlaw’s overview of ASIC fee increases.

2) ABN And Business Name Fees

After your company is registered, you’ll apply for an Australian Business Number (ABN). There’s no government charge for an ABN.

If your trading name is different to your company’s legal name, you’ll also register a business name with ASIC. Government fees are currently:

• $42 for a 1-year business name registration; or
• $98 for a 3-year business name registration.

These are also reviewed periodically, so factor in small fee movements over time. If you’re choosing between a legal name and a trading name, it helps to understand the difference between a business name vs company name so you register the right thing.

3) Legal Documents And Professional Support (Optional But Recommended)

You can file the ASIC application yourself, but many founders prefer a lawyer-managed set-up to get their structure, documents and shareholdings right from the start. This is especially valuable if you have co-founders, plan to issue equity, or want clear rules for decision-making and exits.

• Company set-up package: Fixed-fee packages can handle the ASIC application, core company documents and tailored advice so your structure matches your plans. Sprintlaw’s Company Set Up service is a popular option for first-time founders and growing teams.
• Company Constitution: You can rely on the Corporations Act “replaceable rules”, but many companies adopt a tailored Company Constitution for clarity and flexibility.
• Shareholders Agreement: If there’s more than one owner, a Shareholders Agreement sets expectations around governance, share transfers, exits and dispute resolution.

Lawyer involvement is optional-but the right documents and structure can save you significant time, cost and conflict later.

4) What Should You Budget Upfront?

For most founders, a realistic start-up budget includes:

• ASIC company registration fee (indexed each July)
• Optional legal/document fees (constitution, shareholders agreement, advisory)
• Business name registration (if needed)

If you’re keeping things lean, you can register the company and add documents later. But if you have co-founders, investors, or high-value contracts on the horizon, building your legal foundation from day one is a smart investment.

What Ongoing Costs Should You Budget For?

Registration is just the beginning. Companies have annual costs and compliance tasks. Planning for these helps you stay in good standing and avoid penalties.

ASIC Annual Review Fee

Every registered company pays an annual review fee to ASIC on its review date. This fee is also indexed each July. Budget a few hundred dollars per year and check the latest amount at Sprintlaw’s ASIC fee increase explainer before your review falls due.

Accounting And Bookkeeping

All companies must keep adequate financial records. Many small proprietary companies don’t have to lodge audited financial reports with ASIC unless they meet certain size thresholds or are otherwise directed to report, but you still need accurate books for tax, cash flow and decision-making.

Costs vary with your activity, but founders often invest in bookkeeping software, quarterly BAS preparation, and annual tax compliance. If you’re unfamiliar with GST, BAS and PAYG withholding, it’s worth getting professional tax advice early so your systems are set up correctly.

Insurance, Payroll And Other Compliance

• Insurance: Depending on your industry, consider public liability, professional indemnity or cyber cover.
• Payroll: If you hire staff, you’ll have superannuation obligations and may become liable for payroll tax depending on your state or territory thresholds.
• Licences and permits: Some industries require specific licences to operate. Check local council and state requirements relevant to your activities.

Resident Director And Registered Office

Australian companies must have at least one director who ordinarily resides in Australia. If you’re based overseas, read up on Australian resident director requirements to ensure ongoing compliance from the start.

Step-By-Step: Registering Your Company (With Cost Tips)

Breaking the process into steps makes it more manageable-and helps you decide where to spend and where to save.

Step 1: Decide Whether A Company Is Right For You

Compare the pros and cons of a company versus operating as a sole trader or partnership. Companies cost more to set up and run, but deliver limited liability and a stronger framework for raising capital and bringing on co-founders.

If growth, risk management or investment are on your roadmap, a company is often the better fit.

Step 2: Choose Your Company Name And Check Availability

Search to make sure your preferred name isn’t identical or too similar to an existing registered name. If you plan to trade under a different brand, you can register that trading name as a business name too (and budget the $42/$98 fee accordingly). Keep the distinction between your legal name and trading name in mind by revisiting business name vs company name.

Step 3: Confirm Directors, Shareholders And Share Structure

You’ll nominate at least one Australian-resident director and set your share classes and initial shareholdings. If you’re sharing ownership, consider vesting, founder departures, decision-making and future fundraising. This is usually where a Shareholders Agreement earns its keep.

Step 4: Apply To ASIC And Pay The Registration Fee

Submit your details, pay the ASIC fee and receive your ACN and registration documents. Fees are indexed annually-check current costs before you file and note your annual review date for next year’s budget.

Step 5: Get An ABN And (If Needed) Register A Business Name

Your ABN application is free and typically straightforward. If you will trade under a different brand name to your company’s legal name, register that business name and diarise its renewal date to avoid lapses.

Step 6: Put Your Legal Foundations In Place

Adopt your governance documents and set up key contracts and policies. At a minimum, think about a tailored Company Constitution and, if there’s more than one owner, a Shareholders Agreement. If you’re hiring, prepare compliant employment documents and workplace policies before staff start.

Step 7: Set Up Your Finance And Compliance Systems

Register for GST if your projected turnover is at or above the current registration threshold, set up your bookkeeping and decide who will manage BAS, payroll and year-end tax. A small investment in good systems now can save you time and penalties later.

What Legal Documents Will Your Company Need?

The “right” documents depend on your model, but these are commonly needed by Australian companies.

• Company Constitution: A tailored constitution sets clear rules for director powers, share transfers, meetings and dividends. It provides more control than relying solely on the Corporations Act’s replaceable rules. Many companies adopt a customised Company Constitution at set-up.
• Shareholders Agreement: Essential when there’s more than one shareholder, covering governance, decision-making, founder departures, raises and dispute resolution. A well-drafted Shareholders Agreement reduces risk and sets expectations.
• Employment Agreement: If you hire, use a compliant Employment Contract that addresses duties, pay, IP ownership, confidentiality and termination.
• Customer Terms And Conditions: If you sell products or services, clear terms manage scope, pricing, delivery, liability and Australian Consumer Law (ACL) rights. For online businesses, website or platform terms are typical.
• Privacy Policy: Australian privacy law includes a small business exemption (generally for businesses with annual turnover under $3 million), but there are important exceptions-such as health service providers, credit reporting, contracted service providers to government, or if you opt in to the Act. Many startups publish a Privacy Policy anyway because customers expect it and third-party platforms may require it. If you collect personal information online, get advice on whether the Privacy Act applies to you now or as you scale.
• IP And Branding: Consider trade mark protection for your name and logo, and ensure your contracts assign IP to the company (not to individuals or contractors by default).

If you want everything aligned from day one, a lawyer-managed Company Set Up can bundle your registration and documents so you launch with confidence.

Common Questions About Legal Requirements

Do I need to lodge annual financial statements with ASIC? Most small proprietary companies don’t have to prepare and lodge audited financial reports with ASIC unless they meet certain size thresholds or are otherwise required. However, all companies must keep proper financial records and meet tax reporting obligations.

Is a Privacy Policy legally required for every company? Not always. The Privacy Act’s small business exemption means many smaller companies aren’t legally required to comply-unless an exception applies. That said, publishing a clear Privacy Policy is often a commercial must-have (and can become legally required as you grow or depending on your industry).

How should my company sign contracts? Many companies use section 127 of the Corporations Act to execute documents (for example, by two directors or a director and company secretary, or by a sole director where applicable). Read more about signing under section 127 and set an internal signing policy early.

Other One-Off Or Optional Costs To Consider

• Domain name and website build (including eCommerce or booking tools)
• Software subscriptions (accounting, payroll, CRM, project management)
• Insurance premiums (industry-specific cover and cyber security)
• Trade mark applications (to protect your brand as you grow)

These aren’t strictly part of the “registration” cost-but they often sit in the same start-up budget and are worth planning early.

Key Takeaways

• Company registration in Australia involves an ASIC application fee that is indexed each July; check the latest amount before you apply and plan for annual changes.
• Expect additional upfront costs for a business name (if you trade under a different name) and optional legal support like a Company Constitution and Shareholders Agreement.
• Ongoing costs include ASIC’s annual review fee, bookkeeping and tax compliance, possible insurance, and any industry licences-build these into your yearly budget.
• Most small proprietary companies don’t lodge audited financial statements with ASIC, but all companies must keep accurate financial records and meet tax obligations.
• A Privacy Policy isn’t automatically mandatory for every small company (due to the small business exemption), but exceptions apply and many businesses choose to publish one from day one.
• Setting strong foundations-governance documents, employment contracts and clear customer terms-reduces risk and supports growth.

If you’d like a consultation on the cost of company registration in Australia and how to set up your company the right way, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.