How Much Does It Cost To Set Up A Company?

Thinking about setting up a company in Australia and trying to budget for it? You’re not alone. Incorporation can be a smart move for liability protection and growth, but it does come with upfront costs and ongoing fees you’ll want to plan for.

In this guide, we break down the real costs of forming a company in Australia - from government fees to legal documents, and the “hidden” expenses many founders don’t see coming. We’ll also share practical ways to keep costs under control without cutting corners on compliance.

Let’s walk through what you can expect, so you can set your company up right from day one.

What Are The Upfront Costs To Register A Company?

When people ask “how much does it cost,” they’re usually focused on the initial setup. There are a few core elements most founders pay for at the start.

ASIC Company Registration Fee

When you register an Australian company, you’ll pay a government fee to the Australian Securities and Investments Commission (ASIC). This fee is indexed and updated periodically, so expect a few hundred dollars for the application itself. If you want to reserve a specific company name ahead of time, that is an optional extra fee.

Once registered, you’ll receive evidence of incorporation, and many businesses also arrange an official company register and certificates as part of their onboarding. If you need help with proof-of-registration documents later (for banks or tenders), it’s useful to understand how an ASIC certificate of registration works.

DIY vs Using A Professional Service

You can handle the application yourself through ASIC. Many founders, however, prefer to work with a legal team or a fixed-fee service for peace of mind and efficiency. With a professional Company Set Up, you’re not just getting the form lodged - you’re also getting guidance on structure, share class, officer details, and compliant documents tailored to your business goals.

Company Constitution (or Replaceable Rules)

Every company needs governing rules. You can rely on the Corporations Act’s “replaceable rules” at no extra government cost, or adopt a tailored Company Constitution. A well-drafted constitution adds clarity around decision-making, share issues, and director powers, and can save significant time and cost later if anything changes. Think of it as an investment in smooth governance from the start.

Share Structure And Share Certificates

There’s no ASIC fee to issue initial shares to founders at incorporation, but you’ll want to factor in the admin time and any professional fees to set up your share register properly. Issuing and recording share certificates correctly is important for future capital raises, exits, or shareholder changes.

Essential Legal Documents (Beyond The ASIC Form)

If you have co-founders, investors, or plan to hire, you’ll likely need more than just the ASIC paperwork. Typical documents many companies arrange during setup include a Shareholders Agreement, employment and contractor agreements, confidentiality clauses and key policies. We’ll unpack these costs below so you can budget realistically.

What Ongoing Company Costs Should I Plan For?

Registering the company is only part one. Companies also have annual obligations and general operating costs you should plan for from day one.

ASIC Annual Review Fee

Each year, ASIC charges an annual review fee to keep your company registered. This is a government fee that increases periodically. ASIC may also charge late fees if you miss deadlines, so it’s smart to calendar key dates or use a registered agent.

ASIC Forms And Changes During The Year

If company details change (e.g. share structure, directors, addresses), you may need to lodge forms with ASIC. Understanding when and how to lodge changes (and avoiding late fees) matters - get familiar with common processes such as ASIC Form 484 (now handled through ASIC’s current forms and portals after process updates) or equivalent lodgements, so you’re not caught off-guard.

Accounting, Bookkeeping And Payroll

Most companies budget ongoing costs for bookkeeping software, tax compliance, BAS, and payroll support. Whether you DIY or engage an accountant, factor in regular time and fees to keep your financials compliant and up to date.

Business Name, Domain And Brand

If your company trades under a name different to its legal name, you may also register a business name (a separate fee that renews periodically). Add to that domain registration and brand assets, and consider future trade mark protection for your brand name and logo.

Employment And HR

If you’re hiring, include the cost of engaging a lawyer to prepare tailored Employment Contracts and workplace policies, plus HR software or payroll tools. You’ll also need to budget for superannuation, workers compensation insurance and any award compliance requirements applicable to your staff.

Which Costs Are “Optional” But Worth It?

Some expenses aren’t strictly mandatory on day one, but can reduce risk and save money over the long term.

Shareholders Agreement

Founders often skip this to save a little at the start, but the cost of disputes later can be huge. A Shareholders Agreement sets out ownership, decision-making, vesting and exit terms. It’s one of the best-value documents you can put in place early - especially if you have more than one founder, plan to bring on investors, or issue options.

Company Constitution

As noted above, you can rely on replaceable rules. Still, a tailored Company Constitution often pays for itself in clarity and flexibility. It can streamline approvals for routine decisions, reduce ambiguity, and work hand-in-hand with your Shareholders Agreement.

IP And Brand Protection

Registering trade marks, locking down domain names and documenting IP ownership with your contractors are all smart steps. These costs vary, but they’re far lower than rebranding after a dispute or losing hard-won brand recognition.

Website Legal Documents

If you’re collecting customer data or marketing online, a compliant Privacy Policy is a must. Many companies also implement website terms of use and service terms to set clear expectations with customers.

What Factors Drive The Total Cost Up Or Down?

No two companies are the same, so your final budget depends on a few key choices.

1) Single Founder Vs Multiple Founders

With multiple founders, you’ll want a Shareholders Agreement, clear vesting terms, founder IP assignment and potentially a more detailed constitution. Those are sensible costs to allocate if you want to avoid costly disputes later.

2) Simple Vs Complex Share Structure

Some startups begin with ordinary shares to keep things simple. Others need multiple share classes (e.g. for investors, ESOP or different dividend rights). More complexity usually means more legal time upfront, but it can support long-term plans for capital raising and growth.

3) Industry And Compliance Requirements

Regulated industries (financial services, health, alcohol, childcare and others) may require licences, policies and additional compliance effort. Budget time and professional advice accordingly.

4) Staff, Contractors And Rostering

If you’ll employ staff, you’ll need proper contracts, award compliance and policies. If you’re engaging contractors, scope and IP clauses matter. It’s worth investing in solid agreements at the start to prevent misclassification issues and disputes.

5) Admin And Governance Discipline

Missed ASIC deadlines, sloppy share registers, or undocumented director decisions can lead to penalties or expensive fix-ups. A little governance discipline saves money over time.

A Practical Budget: Typical Line Items To Consider

Use the list below to build a realistic budget for your situation. Some items will be “must-haves” and others will depend on your plans.

• ASIC company registration fee (mandatory)
• Optional name reservation (if you want to secure a specific name before registering)
• Professional service for application and setup (optional but recommended)
• Company Constitution (optional, often recommended)
• Share register and issuing share certificates (administrative and/or professional costs)
• Shareholders Agreement (founders with multiple shareholders)
• Employment or contractor agreements (if engaging people early) - link to Employment Contract
• Key policies (e.g. Privacy Policy, HR policies)
• Business name registration (only if trading under a different name to the company)
• Domain registration and basic website costs
• Accounting software, bookkeeping and tax agent fees
• ASIC annual review fee (ongoing, mandatory)
• Insurance (e.g. public liability, professional indemnity - speak to a broker)
• Trade marks and other IP protection (optional but valuable)

Can I Reduce The Cost Without Cutting Corners?

Yes - the key is knowing where to DIY and where a small investment now avoids big costs later.

• Keep your structure simple at the start if it suits your goals, and only add complexity (like multiple share classes) when needed.
• Use a professional for the core documents that matter most (constitution, Shareholders Agreement, employment and contractor agreements). These control risk and reduce disputes.
• Calendar ASIC deadlines and use checklists for governance to avoid late fees and rework.
• Start with essential policies (like a Privacy Policy) if you’re collecting customer data from day one.
• Maintain your share register and minute important decisions to keep your company “due diligence ready.”

What Legal Requirements Could Add To My Setup Cost?

While the core ASIC fee is predictable, a few legal requirements can impact your overall budget, depending on your scenario.

Resident Director Requirement

Every proprietary company limited by shares needs at least one director who “ordinarily resides in Australia.” If your founding team is overseas, you may incur costs finding a suitable director, or restructuring plans to satisfy the rule. It’s worth reviewing the Australian resident director requirements early if this might affect you.

Record-Keeping And Corporate Registers

Companies are expected to maintain certain records - share registers, director consents, minutes and more. You can DIY with templates, but many founders choose a professional setup package to ensure these are complete and compliant from day one.

Proof Of Identity And Director IDs

Directors need a director ID and will go through identity checks. There’s no large direct cost here, but you should allow time for verification in your project plan, especially if you’re coordinating several founders in different locations.

Employment Law Compliance

Hiring even one employee can trigger award obligations, minimum entitlements and safety policies. Getting tailored Employment Contracts and aligning them with your policies is a smart way to prevent compliance issues and costly disputes later.

Step-By-Step: A Cost-Conscious Company Setup Plan

If you’re ready to move forward, here’s a practical roadmap that balances cost control with good governance.

Step 1: Confirm Your Structure And Share Split

Decide who the directors and shareholders will be, how many shares you’ll issue, and whether you need anything beyond ordinary shares now. Keep it simple unless you have a clear reason to add complexity.

Step 2: Prepare Core Governance Documents

Adopt a Company Constitution (or confirm you’ll use replaceable rules) and get your consent forms and corporate registers ready. It’s easier to do this upfront than to retrofit compliance later.

Step 3: Lodge The Application

Register your company and pay the ASIC fee. If you’re coordinating multiple founders, consider a managed Company Set Up to keep everything moving and aligned with your governance documents.

Step 4: Put Key Contracts In Place

If you have more than one founder, finalise a Shareholders Agreement. If you’re hiring or onboarding contractors, put tailored Employment Contracts or contractor agreements in place now, not after work starts.

Step 5: Finish Your Compliance Checklist

Set up your share register and issue share certificates. Organise your director and member registers, minutes and resolutions, and make sure you know your ASIC annual review date.

Step 6: Launch With Customer-Facing Documents

If you’re collecting personal information or marketing online, publish a compliant Privacy Policy. If you sell online or via an app, consider website or platform terms and clear customer terms before launch.

Step 7: Calendar Ongoing Obligations

Book in your ASIC annual review, BAS and tax deadlines. Keep decision-making minutes and update ASIC promptly when company details change to avoid late fees.

Key Takeaways

• Expect an upfront ASIC fee to register your company, plus optional costs for a Company Constitution, core contracts and professional setup support.
• Ongoing expenses include the ASIC annual review fee, bookkeeping and tax support, and updates when company details change.
• A Shareholders Agreement, tailored Employment Contracts and a compliant Privacy Policy are low-cost ways to prevent expensive disputes later.
• Plan for legal requirements that can affect cost, such as the Australian resident director rule and proper record-keeping from day one.
• Keep your structure simple at first, calendar your deadlines and invest in the governance documents that deliver the most risk reduction.
• Using a managed Company Set Up can streamline compliance and help you avoid hidden costs or rework.

If you’d like a consultation on setting up a company in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.