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Starting a new business in Australia is now easier, cheaper or quicker. Foreigners can start their Australian business without minimum capital in an open common-law system. Your complete guide on how to start a business in Australia in 2026 is here. It covers everything from choosing a suitable structure for business setup in Australia, ASIC requirements, understanding costs, things to do after registration, non-resident visas and ongoing compliance.
Entrepreneurs from Australia or international founders who are looking to break into the Asia-Pacific market should take note. By the end of this blog, you will find out how to set up a business in Australia and start trading within a few days.
In current scenario, Australia is still regarded as one of the safest places to start a business. It provides regulatory policy security, political stability and sound infrastructure, as well as direct access to the exciting Asia-Pacific markets. It has a strong economy and a good tax system too.
Australia ranks highest in the top 10 countries for ease of doing business. The economy has an AAA rating and is very stable. The legal system is a common law system, which is accepted by international investors. Now, it is quicker and easier to start a company in Australia than in most other OECD countries. This is because online registration through ASIC is easy, you get an ABN quickly, yet there are few administrative barriers.
Located in the same time zone as major Asian financial centres, Australia serves as a gateway for business operations in the Asia-Pacific region. Free-trade agreements remove or lower tariffs with China, Japan, Korea, Singapore, the US, UK, and CPTPP countries. This makes starting a company in Australia a smart choice for export-oriented businesses looking for smooth access to over 2.5 billion consumers.
Australia offers a competitive 30% corporate tax rate, 25% for base-rate entities turning over less than $50m, with full dividend imputation, generous R&D tax incentives of up to 43.5% cash-back on tax, and various state-based grants. In 2026, instant asset write-offs and loss carry-back provisions continue to make Australia business setup highly attractive to startups and foreign investors alike.
The following are some of the most popular business structures in Australia in 2026:
Simplest and cheapest structure to start. A single person owns and runs the business with unlimited personal liability. You would use your individual TFN, report the income on a personal tax return, and fully control the business. This is ideal for freelancers and small Australia business setups.
Profits, losses, and management are shared between two or more partners. No separate legal entity, so partners have unlimited personal liability. Easy to establish and quite inexpensive, with a minimum requirement of having a written partnership agreement. Popular for professional practices when setting up a company in Australia with multiple owners.
Proprietary Limited Company (Pty Ltd) is the most common choice among company types as it provides its owners, also called members or shareholders, with a high level of protection from personal liability.
Separate legal entity is also limited liability for shareholders. It requires at least one director and allows strong asset protection. Popular for Company Registration in Australia, as it is scalable, credible with both banks and clients, and can raise capital while keeping personal assets safe.
Business held by a trustee for beneficiaries. Common types include family, unit, and discretionary trusts. Excellent for tax planning and asset protection. Often combined with a corporate trustee. Widely used in Australian business set-ups for property investment, family businesses, and high-net-worth individuals.
Here’s a step-by-step guide to registering a company in Australia in 2026:
Choose a unique name, without violating the ASIC rules, no offensive words or identical names already in existence. Check availability immediately using ASIC’s online Business Name and Company Name search tool.
Decide between Pty Ltd, trust, or special types-e.g., not-for-profit. For the majority of businesses setting up a company in Australia, Proprietary Limited-Pty Ltd is the recommended structure.
Appoint at least one director who must be over 18 years old, at least one must be residing in Australia, or a local agent must be appointed. Shareholders: individual or company, minimum one required.
Provide a physical Australian address, not a PO Box, for the registered office for legal documents. The principal place of business can be different and is where the main operations take place.
Draft a custom constitution or adopt ASIC’s replaceable rules as internal governance. Mostly new companies simply adopt replaceable rules to save time during the Australia company registration.
The whole process of an Australia company registration usually takes 15-30 minutes if all details are correct.
Once approved, ASIC will immediately issue the ACN, a digital Certificate of Registration, and Corporate Key. All three items are crucial for further dealings and Australia business set-up steps.
The following are the necessary aspects that you must consider while setting up a business in Australia in 2026:
A proprietary limited company needs at least one director and one shareholder. Directors must be individuals aged 18 or over. Shareholders can be individuals or corporate entities, Australian or foreign. There is no maximum limit on shareholders, and the same person can act as the sole director and sole shareholder, making Australia company registration very flexible for solo founders.
At least one director normally needs to be resident in Australia. Foreigners can still register a company without actually relocating here by appointing either an Australian-resident director or a professional agent service that offers local representation. It complies with the residency requirement yet allows for 100% foreign ownership, a significant advantage for foreigners setting up a company in Australia.
Every company must have a registered office in Australia, not a PO Box, open to the public for at least 3 hours on business days. This is where ASIC sends legal documents. It can be your accountant’s office, lawyer’s address, or a registered agent service, common for overseas owners completing an Australia company formation remotely.
In proprietary limited companies, 2026 onwards, the appointment of a company secretary is not required. The secretary must be above 18 years and ordinarily resident in Australia, if appointed. Most small Pty Ltd companies forego this position altogether to lessen their administration burden during and after Australia company registration.
Before setting up a company in Australia in 2026, you need to be aware of the cost, whether it’s for a registration, or obtaining any authorisation from professionals or high authorities. Look below to know a list of cost involved for company setup company in Australia.
The main cost of registering a company in Australia is the ASIC fee. It incorporates a proprietary limited company (Pty Ltd), which is the most common structure in Australia. The fee is AUD 611 (as compared to AUD 597 during the previous year due to annual CPI indexation).
Given the current estimated exchange rate as of January 2026 of about 1.58 AUD per USD, this translates to approximately USD 387. This one-time payment provides for online lodgment through ASIC Connect, the issuance of your ACN, and basic validation. Special-purpose companies (like those for SMSFs) are cheaper, at AUD 67, or roughly USD 42. But for a standard setup of company in Australia, you need to budget about USD 387. No refunds apply if you cancel post-registration.
After initial company formation in Australia, you would pay an annual review fee to ASIC to maintain your company’s active status. For 2026, the fee for a standard proprietary company is AUD 329, which is an increase from AUD 321, reflecting the CPI adjustments. This is approximately USD 208 at 1.58 AUD/USD. The fee is due on the anniversary date of your company and includes updating the details, such as directors and addresses.
Any late payments will attract penalties from AUD 93 or USD 59, increasing to AUD 387 or USD 245 after 12 months, plus possible deregistration. It pays to prepay up to 10 years in advance, as this will avoid future indexation, making it an astute option for a long-term Australia business set-up.
Professional assistance is essential for Australia company registration, especially for foreigners or complex structures. The accountants charge between AUD 300 and AUD 1,500, which is about USD 190 to USD 949, for setup advice that includes tax structuring and ABN applications. Lawyers offer packages ranging from AUD 600 to AUD 1,500, approximately USD 379 to USD 949, for drafting constitutions, reviewing agreements, and conducting tax compliance checks.
Registered agents, needed for non-residents, charge between AUD 300 and AUD 600, roughly USD 190 to AUD 379, each year for address services and filings. The total professional fees vary between USD 758 and AUD 1,899, depending on the scope. While it is quite possible to do it yourself, experts prevent errors that could cost more later in your set-up company in Australia journey.
Besides ASIC, various free or low-cost registrations complete your Australia business setup. An application for an ABN and a company TFN is free via the Australian Business Register. GST registration is also free, but is required if the annual turnover is more than AUD 75,000 (approximately USD 47,468), or it can be done voluntarily before that for input credits.
If you are using a name other than your personal one for trading, then you need to register a business name, which costs AUD 45 (USD 28) for one year or AUD 104 (USD 66) for three years through ASIC. Other costs will include domain registration from AUD 10-20 (approximately USD 6-13), and basic trademarks from AUD 250 (approximately USD 158) upwards. These, in total, add USD 34 to USD 79 initially to the overall entry barrier for new ventures.
Ensure to follow up with the registrations given below post company formation in Australia:
An ABN is required for businesses operating in Australia and is available for free within minutes of registering the company. It’s your identifier for your business regarding invoicing, GST, and government interactions. If you do not have an ABN, clients are required to withhold 47% tax.
GST registration is compulsory for an annual turnover of AUD75,000 and is free to apply. It means you can claim back input tax credits and charge 10% GST. Voluntary registration before the threshold assists in professional image and enables you to reclaim GST on some startup costs.
Every registered company automatically obtains a corporate TFN during ASIC registration or can apply separately via the Australian Business Register. The TFN is necessary to lodge company tax returns, open bank accounts, and all ATO dealings.
If you pay salaries, register for PAYG withholding through the ATO to deduct tax from employee wages. Registration is free and required in advance of the first payroll. You then forward withheld amounts on a monthly or quarterly basis and issue payment summaries annually.
If you are trading under a name different from your legal company name, then register the business name with ASIC. Costs AUD45 for 1 year or AUD104 for 3 years. Registration gives you nationwide protection. It is compulsory to use the trading name publicly.
Secure your.com.au domain early by applying for an ABN, and consider trademarking your brand through IP Australia for AUD250 per class. These steps protect your identity online and prevent others from using similar names, which is important for long-term success in setting up a business in Australia.
Opening a corporate bank account in Australia, after company registration, is very important for transactions, payroll, and credibility. Presently, the options range from traditional banks to neobanks, and even remote opening for foreigners may be possible. Major required documents include ACN, ABN, and ID proofs. For foreign-owned companies, enhanced checks can be expected.
For local companies, provide ACN/ABN, Certificate of Registration, company constitution, director/shareholder IDs (passports, driver’s licenses totalling 100 points via Australia’s system), proof of address (utility bills), and board resolution authorising the account.
Foreign-owned companies fall under stricter due diligence: add beneficial ownership letters for 25%+ holders, source of funds proof, verification of UBO, notarised/apostilled documents, English translations, and TINs. Some banks require a local director or verification in person, while neobanks often enable a fully remote setup with digital uploads of documents. You must always check specific bank lists to avoid delays in your Australia business setup.
Major banks CommBank, NAB, ANZ, and Westpac dominate in terms of the number of branches, cash handling, loans, and international services. However, they charge higher fees than traditional institutions: AUD10 to AUD30 per month. Fully digital experiences are not as fast.
Zero-fee neo-banks Bank, Volt, Airwallex, and Wise dominate currently. They offer app-based account management, multiple currencies, and integrations such as with Xero. They are ideal for startups and exporters alike. Majors will always suit complex requirements, such as large loans. Neobanks win on speed and cost for smaller enterprises. The latter also lacks physical support. Choose based on transaction volume and global reach for an optimal set-up company in Australia.
It’s possible to own and register a company completely as a foreigner, but active work requires a visa in Australia. This includes a National Innovation Visa, replacing the recently closed Subclass 188 for innovators in 2026, Skills in Demand, Subclass 482, which grants self-sponsorship, and temporary business visitor visas that balance business setup of company in Australia with migration pathways.
No, you do not have to be an Australian resident to be an owner or set up a company in Australia. Foreigners can achieve 100% ownership, and Australia company registration can be done completely remotely through the ASIC online, assigning a resident director locally or an agent to comply with its one-resident-director rule.
This applies to the proprietary limited companies- Pty Ltd, the most common structure for international founders. Residency will only be relevant in case you plan to live or work in Australia and thus may require a respective visa. There are no restrictions on shareholding and directorship, aside from the residency requirements and profit repatriation for non-residents, making the setup of a business in Australia very friendly for global entrepreneurs without their immediate relocation.
In 2026, Subclass 188 (Business Innovation and Investment) and Subclass 132 (Business Talent) are closed to new applications since 2024 and 2021, respectively, shifting focus on innovation-driven pathways. The National Innovation Visa, Subclass 858, targets truly exceptional entrepreneurs with high-impact ideas and grants permanent residency without investment thresholds.
For self-sponsored roles, the Skills in Demand Visa, Subclass 482, allows business owners to sponsor themselves as executives if they can meet the occupation lists and salary requirements of AUD 73,150+. Short-term, Subclass 600 Business Visitor enables up to 12 months for setup without paid work. These options prioritise talent and economic contribution for setting up a company in Australia.
Some crucial compliance and obligations after registration, you must know:
ASIC sends an invoice and statement every year on the anniversary of registration. Companies should pay the annual review fee (AUD 329 in 2026) within 28 days and confirm that any details are up to date. Directors must also pass a solvency resolution within two months of the review date, confirming the company can pay its debts. Delinquency will be subject to late fees, penalties, and possible deregistration.
ASIC requires companies to keep accurate registers of members, directors, secretaries, and allotments of shares. Any change-new director, address, or shares issued-must be notified to ASIC within 28 days using Form 484. Outdated registers constitute a breach of the Corporations Act and attract fines up to AUD 22,200, along with legal risks if an audit or sale occurs. Most businesses now use software or registered agents to maintain compliance.
Small proprietary companies (revenue less than AUD 50 million, less than 100 employees, assets less than AUD 25 million) are generally exempt from compulsory auditing and lodging financial reports with ASIC. Companies are required to prepare annual financial statements, have these audited and lodge with ASIC. Even exempt companies should keep proper records for taxation and banking purposes.
Income tax returns are lodged annually with the ATO by companies. If the company is registered for GST, a BAS must be lodged monthly or quarterly, reporting the GST, PAYG instalments, and withholding. There is little scope for extensions, and late lodgement of a BAS attracts general interest charges and penalties. If the company has employees, it must also remit PAYG withholding and superannuation guarantee (11.5% in 2026) on time.
Many new founders weaken their Australia business setup through avoidable mistake listed below:
As of now, the Standard Australia company registration through ASIC is among the fastest in the world.
If all the details are correct and submitted online through ASIC Connect with a valid myGovID, the approval is usually instant to 24 hours, often within 15-30 minutes. More complex applications or manual processing may take up to two business days. ABN, TFN, GST, and opening a bank account after incorporation take up to one to five business days more.
Foreigners using registered agents have the same speed of incorporation but may need extra time for verification through banks, up to two weeks. Overall, a fully operational Australian company can be set up in less than a week from start to finish.
Setting up a company in Australia remains fast, affordable, and foreigner friendly. With its instant online registration, no minimum capital, 100% foreign ownership allowed, and a stable economy offering access to Asia-Pacific markets, Australia continues to attract entrepreneurs from around the world. Whether you are selecting a simple Pty Ltd structure or plan to scale with investment visas, the process is seamless and transparent. Steer clear of common pitfalls by planning ahead for directors, addresses, and steps after registration. You’ll have your ACN, ABN, and active bank account in days. Don’t wait anymore, setting up an Australia business has never been more accessible with Enterslice.
A registration fee must be paid to ASIC to register a business and proceed through the incorporation process. For both proprietary with shares, the expenses are AUD611. AUD503 is charged for businesses with particular purposes.
In Australia, a non-resident may establish a business, but they are not permitted to do so independently. In Australia, at least two of the minimum three directors must be residents of Australia, and at least one director of any firm must be an Australian.
In Australia, sole proprietorships, partnerships, companies, and trusts are the most prevalent business forms. Your business structure and the names you use while conducting business determine which ASIC registrations you must be on.
It is completely possible to launch a business with AUD 10,000, particularly in service-based or e-commerce models with little cost and scalable possibilities. The most accessible choices (such as tutoring, relocation services, or lawn care) use typical local requirements and require little equipment.
Over 65 foreign tax jurisdictions worldwide have received data on foreign tax residents' financial accounts from the ATO, including details about account holders, balances, interest and dividend payments, asset sale profits, and other revenue.
The lower company tax rate is 25%, whereas the full business tax rate is 30%. If your company is a base rate firm, it qualifies for the reduced rate. If your company's total revenue is less than AUD50 million, it is a base rate entity.
The need for spices is likewise consistent. India sold these goods for USD 85.27 million in 2024. These scents and tastes appeal to Australian households, cafés, and chefs. Strong cultural ties between the two countries are also reflected in these cuisine items.
Yes, AUD5,000 can be sufficient to launch a firm, particularly with low-cost models like digital or service-based companies. A lean startup strategy, concentrating on necessary expenses and being resourceful, is necessary for success with this budget.
In Australia, the term “10-year rule” refers to a number of laws, most frequently the 10-year residency requirement for automatic citizenship for children born in Australia or the 10-year ownership requirement for a downsizer super contribution.
The majority of products, services, and other commodities sold or consumed in Australia are subject to the 10% goods and services tax, or GST. You must collect this additional sum (one-eleventh of the selling price) from your clients if your company is registered for GST.
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