Registering a Pty Ltd company in Australia: the process and what to prepare
Registering a company is not the same as registering an ABN
Many people think “registering a business” is a single step. For a sole trader, that is roughly true — you register an ABN, possibly register a business name, and you are done. For a company (Pty Ltd), the process is more complex because you are creating a brand-new legal entity that is completely separate from you.
Understanding the process in advance helps you prepare correctly — and avoid having to go back and fix things after you have registered.
Step 1 — Decide the company structure
Before you register, you need to decide:
The company name: It must be unique — ASIC has a name search tool at asic.gov.au. The name you choose becomes the company’s legal name (usually ending in “Pty Ltd”). You can trade under a different name (a trading name or business name) — but legally the company keeps the name registered with ASIC.
Who is a director: At least one director must be an individual who ordinarily resides in Australia. A director carries personal legal responsibility for the company — this is not an honorary role. Each director must have or apply for a Director ID (through the myGovID portal).
Who is a shareholder: Shareholders own shares in the company. A director and a shareholder can be the same person or different people. A company can have a single shareholder (a single-member company).
Registered office and principal place of business: The registered office is the official address ASIC sends mail to — it must be a physical address in Australia (not a PO Box). It can be your home, your accountant’s office, or your place of business.
Step 2 — Register through ASIC
Company registration is done through ASIC — at asic.gov.au/online-services/start-a-company. You can register directly or through a registered agent (your accountant or solicitor can usually do this for you for a small service fee).
ASIC charges a registration fee — check the current fee at asic.gov.au, as fees change periodically. After registration, you receive an ACN (Australian Company Number) — the unique identifier for this company.
Step 3 — After you have an ACN: register an ABN
An ACN and an ABN are two different things:
- ACN: issued by ASIC, identifying the company as a legal entity
- ABN: issued by the ATO through the ABR, needed for tax dealings
Once you have an ACN, register an ABN for the company at abr.gov.au. The company’s ABN will differ from your personal ABN if you were previously a sole trader.
Step 4 — Company constitution and tax registrations
Company constitution: This is the company’s set of internal governing rules — the rights and obligations of directors and shareholders, and how decisions are made. If you do not draft your own, ASIC applies the default Replaceable Rules from the Corporations Act. Many small businesses use the Replaceable Rules to begin with — but if you have multiple shareholders or complex partners, a solicitor should draft a tailored constitution.
Tax registrations: Depending on size and activity, a company may need to register for: GST (if it meets the threshold), PAYG withholding (if it has employees), and PAYG instalments. All of these are done at ato.gov.au.
Step 5 — Company bank account
Open a separate bank account for the company as soon as you have the ACN and ABN. The bank will require the certificate of incorporation from ASIC, the ABN, and the director’s identity.
This account belongs to the company — not to you personally, even if you are the sole director. This is a foundational principle of the company structure.
After registration: annual obligations to ASIC
A company must pay an annual review fee to ASIC each year — ASIC sends a notice before the due date. Not paying creates a debt to ASIC and can ultimately lead to deregistration.
In addition, any change to directors, shareholders or the registered address must be reported to ASIC within the prescribed time. See the related guide on the running costs of a Pty Ltd company for the full set of annual obligations.