The Complete Guide to Setting Up a Company in Australia

You must have a roadmap in your mind and hands to lay down a solid foundation. 

May 21, 2024

The Complete Guide to Setting Up a Company in Australia

As much as starting your new venture feels exciting, it also comes with a certain set of challenges. There is the registration of a business, but before that, you need to understand the structure of your company. You must have a roadmap in your mind and hands to lay down a solid foundation. 

If you are setting up a business in Australia, you must know all the setup details along with the business services in Australia. From financials to registration and trading names, keep in mind all this to launch a business with a perfect foundation. 

Step-by-Step Guide for Setting up a Company in Australia

When you are starting a business, you must consider every unimaginable challenge. If you are not fully prepared for the process of company incorporation in Australia, you are ready for failure. 

Therefore, it is important to understand not only just the steps but also the basic and future requirements for starting a business in Australia.

  • Check if You're Ready

Starting a business means you have to be committed to it full-time. Yes, it often yields greater rewards than a traditional employment role. But it also takes time and a lot of patience to get to those fruitful results. Therefore, you have to know whether you are ready to participate fully in all the processes and self-employment. 

Take your time and critically evaluate how you deal with the unthinkable phases and challenges of building and owning a business. Moreover, as an Australian business owner, you must be aware of the rules and regulations governing your sector and firm. This includes labour laws, tax laws, consumer laws, and others. 

  • Choosing a Business Structure

Once you are ready to implement the plan, the next step is to choose the business structure, whether you want it to be a sole trader, company, partnership, or wellness trust. 

A business consultant, lawyer, or accountant may be able to advise you on the optimal structure.

Once you've determined what form of company entity you need, you may follow the step-by-step process to create a business in Australia from anywhere else, including obtaining an Australian business registration number. 

  • Register Your Company

Once you have your plan and focus set, the next step is company registration in Australia. You will need to hire the best advisory services in Adelaide for this process. The process is complex and often has too many legal formalities to overwhelm you. Therefore, a professional guide can make it smooth for you.

If you hire Ashmans Accounting for company registration, our experts can submit the registration application online. ASIC will process and accept it, and your company will be registered immediately. If ASIC has no objections to your registration application, your company should be registered within 20 minutes after filing.

Sometimes, we might need to register your firm on paper forms. We can obtain and complete ASIC Form 201 on your behalf and complete it if necessary. 

  • Post-Registration

Once you have completed the registration process, the next steps are for tax numbers and financial handling. You must establish the company's resources, which includes opening a bank account and organizing your accounting and bookkeeping processes. 

Your professional lawyer will advise you to get the following:

  • Applying for an Australian Business Number (ABN) and a Tax File Number (TFN) through the Australian Business Register.
  • Keeping several statutory company registries.
  • Choosing a Public Officer of the Australian Taxation Office (ATO).
  • Create a bank account. 
  • Understand common business structures in Australia

To set up a company in Australia, you need to understand all the common business models/structures. 

  1. Proprietary Limited company (Pty Ltd)

The Proprietary Limited Company(Pty Ltd) is also most often known as a private company. This privately owned company has not offered shares to the general public. 

  1. Australian Public Company

A Public Company is another common business structure for thrones looking for an Initial Public Offering (IPO) on the Australian Stock Exchange or to surpass the shareholder limit.

Public businesses in Australia are usually formed by members of the business community who want to raise capital from more stakeholders. Often, these board members are different from the company's owners. 

  1. Partnership

A partnership is a commercial entity that can be formed by two or more people agreeing to do business together.

Each type of partnership has varying levels of obligation. In Australia, each state and territory has its legislation and rules.

  • Sole Trader

You can run your own company as an individual trader. A sole trader can either trade under his or her name or a registered company name. 

Your income is taxed at the same rate as an individual taxpayer. 

This is the most basic type of business structure, with reduced startup expenses and fewer legal and regulatory obligations.  

  • Trust

A trustee, who can be a person or a company, owns the trust's property or assets and conducts business on behalf of its beneficiaries. 

  • Obtain Business Insurance

Business insurance can help your company avoid financial losses caused by unforeseen circumstances. You should look into professional indemnity, public liability, and other kinds of insurance as needed.


As you start your business journey in Australia, it's important to understand the steps involved in setting up your company. From navigating legal requirements to understanding tax regulations, each step is pivotal in laying a strong foundation for your business. Take the time to familiarise yourself with the ins and outs of the Australian business set up to ensure a smooth and successful journey toward entrepreneurship.

It is important to have a proper and strategic plan for the immediate process and the future. As for contract services, partner with the expert team at Ashman's Accounting. We not only offer seamless processing but also provide the experience of all the years with guidelines to navigate through the steps.