What Is The Cost To Set Up A Company In Australia?

Ready to take the next step and register a company in Australia? Moving from an idea (or a sole trader structure) to a Pty Ltd company is a smart move for many small businesses - it can offer limited liability, credibility with clients and investors, and a clearer path to growth.

But what does it actually cost to set up a company - not just the initial registration, but the real, all-in cost to get it off the ground the right way?

In this guide, we’ll break down the typical setup costs for an Australian company, where the hidden expenses can creep in, and how to budget so you’re not caught off guard. We’ll also cover the essential legal documents you’ll likely need from day one.

How Much Does It Cost To Set Up A Company In Australia?

There are two buckets to think about: one-off costs to incorporate and launch, and ongoing costs to keep your company compliant each year.

At a high level, most small businesses should budget for:

• Company registration fees (ASIC and service fees)
• Core legal documents (constitution, shareholder terms, initial resolutions)
• Professional setup (legal and accounting support)
• Operational setup (domain, website, software, insurance, bank fees)
• Ongoing compliance (ASIC annual review, bookkeeping, tax, payroll)

Depending on your choices (DIY vs done-for-you, simple share structure vs more complex, single founder vs co-founders), your initial setup can range from a lean few hundred dollars to several thousand dollars for a professionally set up and documented company.

One-Off Company Setup Costs: What To Expect

Let’s break down the typical once-off costs you’ll see when incorporating a company in Australia.

1) Registration Fees (ASIC and Service Fees)

When you register a company, there’s a government fee payable to ASIC (the Australian Securities and Investments Commission). This fee is reviewed periodically - it’s worth checking current ASIC fees at the time you’re incorporating.

If you use a professional service to handle the paperwork, there will also be a service fee on top. Many founders value the convenience and accuracy of a done-for-you process, especially if you want your share classes, company officers, and governance set correctly from day one. If you’re looking for support, our fixed-fee Company Set Up service can bundle the essentials and save time.

2) Company Name and Domain

Choosing a unique company name is free to check, but registering it as your company’s name occurs within the ASIC company registration process. You’ll also want to secure a matching domain name and potentially social handles. Domain costs vary (usually from ~$10-$40 per year for .com and more for .com.au depending on the registrar).

3) Company Constitution and Governance

Companies can either use “replaceable rules” from the Corporations Act or adopt a custom constitution. Many businesses choose a tailored Company Constitution so their internal rules match how they actually want to operate (e.g. director powers, share transfers, meetings, pre-emptive rights).

Expect a fee if you want a lawyer-drafted constitution. It’s a one-off cost that often pays for itself by preventing governance headaches later.

4) Shareholder Arrangements

If you have more than one owner, a Shareholders Agreement is critical. It sets out decision-making, equity splits, vesting (if relevant), exits, disputes and what happens if a founder leaves. It’s much cheaper to agree terms at the start than to fight about them later.

5) Resident Director and Registered Office

Australian companies must have at least one director who ordinarily resides in Australia. If you’re based overseas or relocating, factor in the costs of meeting resident director requirements, as well as any registered office or ASIC document handling services you might use.

6) Tax Registrations and Accounting Setup

Applying for an ABN and TFN is free, but there may be accounting fees for setting up your chart of accounts, payroll, and GST if you register (mandatory if turnover is $75k+). Many founders also invest in cloud accounting software from day one to keep books tidy - expect subscription costs here.

7) Branding and IP Protection

Logo design and brand development can be modest or significant, depending on your approach. Consider whether you’ll also budget to register trade marks for your brand assets. If you want comprehensive protection, set aside funds to file applications and get advice - it often costs less than rebranding after a dispute.

8) Website, Legal Policies and Tools

Hosting, theme/templates, and site build costs vary widely. If you collect any personal information through your website (including email sign-ups or contact forms), you’ll need a compliant Privacy Policy. Many businesses also include Website Terms of Use and disclaimers depending on their industry.

9) Insurance

Insurances (public liability, professional indemnity, cyber, etc.) aren’t part of company law, but they’re a practical startup cost to consider. Premiums vary based on risk and industry.

Ongoing Company Costs You Should Budget For

Companies come with ongoing compliance obligations. Planning for these early makes cash flow smoother and reduces the risk of penalties.

1) ASIC Annual Review Fee

Each year, companies pay an ASIC annual review fee, which ASIC adjusts from time to time. Mark the due date in your calendar - late payment can attract penalties in addition to the base fee.

2) Registered Office and ASIC Agent Services

If you use a registered office service or a corporate secretarial/ASIC agent, include their annual fees in your budget. They’ll usually handle routine filings, updates and reminders, which can be worth the investment for busy teams.

3) Accounting, Bookkeeping and Payroll

Expect ongoing costs for bookkeeping, BAS lodgements, payroll processing, superannuation, and end-of-year accounts and tax returns. Cloud accounting subscriptions and add-ons (e.g. payroll or expense management tools) are part of this line item.

4) HR and Employment Compliance

If you’re hiring, budget for recruitment costs, onboarding, and compliant documents like an Employment Contract and workplace policies. There may also be ongoing costs for payroll tax (where applicable), workers compensation insurance and HR software.

5) IP and Brand Maintenance

Renewal fees for trade marks (if you register them), ongoing website and domain renewals, and marketing subscriptions are common annual costs.

Company vs Sole Trader: Why Costs Differ

Setting up as a company is usually more expensive than operating as a sole trader - both initially and on an ongoing basis. Here’s why:

• Separate legal entity: A company is its own legal “person”. This brings limited liability benefits, but also compliance obligations and filings.
• Governance: Companies have directors’ duties and formalities (record-keeping, resolutions, annual reviews).
• Growth and investment: If you plan to raise capital, issue shares or bring on co-founders, a company structure is far more flexible.

If your business is staying small and simple, sole trader can be lean and easy. If you’re building a brand with assets, team and scale, a company’s extra costs often make sense as an investment in protection and growth.

What Are The Hidden Costs When Incorporating?

It’s common to overlook these when budgeting for your company setup:

• Customising your constitution and shareholder terms (don’t rely on generic templates if they don’t fit your plans).
• Extra ASIC lodgement fees if you need to correct details later, or change share structure soon after registration.
• Directors’ back-and-forth on roles, pay and equity - it’s cheaper to agree on a clear framework up front with a Shareholders Agreement.
• Compliance time costs - even if you DIY, your time has a cost. A small retainer for corporate secretarial support can be more efficient.
• Delays - missing a requirement (for example, not meeting resident director rules) can cause rework or rush fees, so confirm resident director requirements early.

Step-By-Step: Where Costs Arise In The Setup Process

Step 1: Choose Your Structure and Share Plan

Decide on your company details: directors, shareholders, share classes and numbers, and any vesting or founder terms. If co-founders are involved, plan for a Shareholders Agreement now rather than later.

Step 2: Prepare Your Governance Documents

Adopt a tailored Company Constitution (or rely on replaceable rules), draft initial director and shareholder resolutions, and settle any IP assignment deeds if founders have already created assets.

Step 3: Register The Company

Lodge with ASIC and pay the registration fee. If you want a professional to manage everything (and avoid errors), a fixed-fee Company Set Up service can include filings, core documents and support.

Step 4: Get Your ABN/TFN (And GST If Needed)

ABN/TFN applications don’t attract a government fee, but you might use an accountant to set up your tax profile correctly. Register for GST if your annual turnover will be $75,000 or more.

Step 5: Open Your Bank Account and Set Up Accounting

Most banks require the ACN and incorporation documents. Budget for any bank fees, plus cloud accounting subscriptions and add-ons you’ll use to manage cash flow and payroll.

Step 6: Build Your Brand, Website and Policies

Secure your domain, build or commission your website, and publish a compliant Privacy Policy. Consider protecting your brand by registering trade marks when you’re ready to commit to the name and logo.

Step 7: Hire And Onboard (If Applicable)

As you bring on staff, ensure each person has an Employment Contract that aligns with your award obligations and internal policies. Budget for payroll software, super and workers compensation insurance.

Can I Reduce My Company Setup Costs Without Cutting Corners?

Absolutely - it’s about focusing your spend where it reduces risk the most.

• Start with the essentials: Register correctly, adopt governance that matches your plans, and get your co-founder terms in writing.
• Use scalable tools: Cloud accounting, e-signing and cap table tracking save time and reduce errors.
• Avoid rework: Align on share splits and decision rights before you press “register”. Re-issuing shares later is more expensive.
• Plan cash flow: Set aside a modest monthly budget for compliance (ASIC, bookkeeping, payroll) so annual fees don’t surprise you.
• Get targeted advice: A short consult at key junctures (incorporation, first hire, first major contract) is often cheaper than fixing mistakes.

What Legal Documents Will My New Company Need?

Not every company needs all of these on day one, but most growing businesses will need several of the following early:

• Company Constitution: Your internal rulebook that sets governance, director powers and share terms. A tailored Company Constitution keeps things clear as you grow.
• Shareholders Agreement: Sets decision-making rules, exits, founder obligations, vesting and dispute processes between owners. Link equity to performance and avoid stalemates with a clear Shareholders Agreement.
• Directors’ and Shareholders’ Resolutions: Records key company decisions (appointments, share issues, bank authorisations) to keep your minute book compliant.
• Privacy Policy: Required if you collect personal information online or offline, your Privacy Policy explains what you collect and how you use it.
• Website Terms of Use: Protects your platform by setting acceptable use rules and limiting your liability.
• Employment Contract: If you hire staff, an Employment Contract clarifies duties, pay, IP ownership and confidentiality.
• Supplier/Customer Contracts: Terms that set deliverables, payment, IP and liability with suppliers and clients reduce disputes and improve cash flow.
• IP Assignments and Licences: Ensure any IP created by founders, employees or contractors is owned by the company, not individuals.

Building this foundation early helps prevent expensive disputes and ensures investors, banks and partners can deal with you confidently.

Typical Cost Ranges To Use In Your Budget

Every business is different, but these ranges can help you plan (ex GST):

• ASIC company registration fee: Government-set fee (check current ASIC fees).
• Professional company setup service: Varies based on inclusions (filings, constitution, minutes, advice).
• Shareholders Agreement: Depends on complexity (single class vs multiple classes, vesting, drag/tag, buy-sell mechanics).
• Accounting setup (ABN/TFN/GST, payroll, software): Variable depending on scope and tools.
• Website and policies: Hosting and build costs plus legal policies like a Privacy Policy.

Note: ASIC and ATO requirements change from time to time, so verify current fees and thresholds when you’re ready to incorporate.

Key Takeaways

• Setup cost of a company includes more than ASIC fees - factor in governance documents, professional setup, and operational essentials.
• A tailored Company Constitution and a clear Shareholders Agreement can save significantly on disputes and rework later.
• Plan for ongoing costs like ASIC annual review, bookkeeping, payroll and HR compliance from day one.
• Confirm resident director requirements early and keep accurate resolutions and records to stay compliant.
• Publishing a compliant Privacy Policy is essential if you collect personal information through your website or apps.
• Targeted legal and accounting support at key milestones is usually cheaper than fixing mistakes after the fact.

If you’d like a consultation on the setup cost of a company and what your business specifically needs, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.