Starting a Business in Australia

This table summarizes the procedures and costs associated with setting up a business in Australia.

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Standardized company

Legal Form: Proprietary Company (Pty Ltd)
City: Sydney

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Complete and lodge ASIC Form 201 “Application for Registration as an Australian Company"; Obtain a certificate of incorporation and an Australian company number (ACN) 1 day AUD 400
2 Register for ABN with the Australian Taxation Office (ATO) 1 day no charge

Registration Requirements Details

Procedure 1.
Complete and lodge ASIC Form 201 “Application for Registration as an Australian Company"; Obtain a certificate of incorporation and an Australian company number (ACN)
Time to complete:
1 day
Cost to complete:
AUD 400
Name of Agency:
Comment:
The company must complete and submit form 201 “Application for Registration as an Australian Company”, along with the prescribed fee of AUD 400 when registering a proprietary limited company.

To complete the application, the company must indicate the Australian state or territory in which it will be registered and whether it will rely entirely on the replaceable rules or a constitution. The company should also provide the following details: the proposed corporate name (if any)*, the corporate type and class, the location of the registered office, principal place of business in Australia, the identity of the ultimate holding company (known as the parent company), officeholders (of which on director must be an Australian resident, and, if any are appointed, one company secretary must be an Australian resident), the share structure, and the shareholders and their shareholdings. A company may adopt its own constitution with the consent of all company members. Moreover, the applicant, a company member, or a person who has consented to become a director or secretary or by the applicant’s agent with the requisite authority must sign form 201.Once form 201 has been completed and the directors and secretary (if any) have consented to be officeholders, the form 201 can be lodged with the Australian Securities and Investment Commission (ASIC). Before submitting ASIC form 201, applicants should check with ASIC on the availability of their proposed company name (if any) for registration at www.search.asic.gov.au/gns070.htm.

Once the 201 form is lodged with ASIC electronically and the company’s name is acceptable an Australian Company Number (ACN) becomes available, the ASIC provides the company with an Australian Company Number (ACN), registres the company on the ASIC database and issue the company a certificate of registration electronically and a copy will be mailed.
Procedure 2.
Register for ABN with the Australian Taxation Office (ATO)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
this procedure is required under the Income Tax Assesment Act 1936 and a new tax system ( Goods and Services Tax) act of 1999.
Depending on the company circumstances and location, it must comply with different taxation requirements:
- If the annual company turnover is AUD$75,000 or more, the company must register for Goods and Services Tax (GST) by obtaining an 11-digit Australian Business Number (ABN). The annual company turnover represents its gross business income (not its profit). Companies with lower annual turnover may also choose to register for the Goods and Services Tax. An application for an ABN can be submitted electronically at the Business Entry Point, www.abr.business.gov.au. Otherwise, the application may be submitted by hard copy to the (ATO). If electronic submission is successful, the applicant will be provided with an ABN at the end of the Internet session. The ATO will also mail the ABN within 28 days of receipt of the application.
-The company must deduct tax from employee pay, provide payment summaries, contribute to employee superannuation, and report and issue payments to the ATO. Companies may also register for Pay As You Go (PAYG) at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll tax, and land tax) may also be imposed, with requirements differing according to company location.
- Companies with annual turnover of AUD$75,000 or more must register for an ABN. Failure to do so will result in GST being levied on all company sales since the required date of registration – even if the sale price of any goods or services has not been grossed up to include the tax. Furthermore, the company may incur penalties and interest charges for any overdue payments.