Cost To Set Up A Company In Australia: How Much You’ll Pay

Starting a company in Australia is an exciting step - it can help you grow, protect your personal assets and build a brand with credibility.

But how much does it actually cost to set up a company, and what ongoing fees should you plan for?

In this guide, we’ll break down the one-off and recurring costs, from ASIC fees and mandatory IDs to essential legal documents, so you can budget with confidence and set up your company the right way.

What Does It Cost To Register A Company With ASIC?

When you register an Australian company, you’ll deal with the Australian Securities and Investments Commission (ASIC), the government body that regulates companies. These are the core setup costs most founders encounter.

ASIC Company Registration Fee

• Budget around $576 for a standard proprietary limited company (Pty Ltd). ASIC updates fees periodically (usually on 1 July), so treat this as a guide and leave a buffer.

Company Name Reservation (Optional)

• Reserving a name in advance is optional and typically costs about $59. Many founders skip this if they’re ready to lodge the application immediately.

Business Name Registration (If You’ll Trade Under A Different Name)

• If your company will trade under a different name to its legal name, register a business name with the ASIC Business Names Register.
• Indicative fees: $42 for 1 year, $98 for 3 years.

Registered Office And Principal Place Of Business

• You must nominate a registered office (where official notices can be sent). If you don’t have a commercial address, consider a virtual office or mail-handling service ($300–$600+ per year, depending on the provider).

Resident Director Requirement

• Proprietary companies need at least one director who ordinarily resides in Australia. If your founders are overseas, you may need a local solution (which can involve extra cost). If this applies to you, read up on Australian Resident Director Requirements early to avoid delays.

Director ID (Mandatory)

• Every director must have a Director Identification Number (Director ID). New directors generally need this before they’re appointed. There’s no fee, but you’ll need to factor in time to apply and verify your identity.

If you’d like everything handled end to end (filings, registers and core documents), many founders use a fixed-fee Company Set Up service to streamline the process and avoid mistakes.

Beyond ASIC: What Other Setup Costs Should I Expect?

Beyond ASIC fees, budget for the documents and tools that help your company operate smoothly and stay compliant from day one.

Company Constitution Or Replaceable Rules

• You can rely on the Corporations Act’s “replaceable rules” or adopt a tailored Company Constitution.
• A custom constitution sets clear decision-making processes, director powers and share rules. Expect a few hundred to a couple of thousand dollars depending on complexity and customisation.

Shareholders Agreement (If There’s More Than One Owner)

• Where there are co-founders or investors, a Shareholders Agreement is strongly recommended. It covers ownership, voting rights, exits, buy-sell mechanics and dispute resolution.
• It’s not legally required, but it’s one of the most cost-effective ways to prevent expensive disputes later.

ABN, TFN And GST Registration

• Applying for an Australian Business Number (ABN) and Tax File Number (TFN) for your company is free.
• Register for GST if your turnover will be $75,000 or more (or earlier if it suits your pricing or customers). There’s no government fee to register.

Tax note: ABN/TFN/GST and payroll settings are tax matters administered by the ATO. This guide is general information only - it’s wise to get tailored tax advice from your accountant.

Bank Account And Merchant Facilities

• Company bank accounts are usually low or no-cost to open, but budget for monthly fees ($0–$20+ depending on features) plus any payment gateway or card processing fees (often 1–2.5% per transaction).

Domain Name, Website And Email

• Domain (.com.au): ~$15–$30 per year. Hosting: ~$10–$50+ per month. Website build: $0 (DIY) to $5,000+ (designer/developer), depending on scope.
• If your site collects personal information (for example, via contact forms, online orders or a mailing list), consider a Privacy Policy and Website Terms Of Use aligned to how your site works.

Privacy note: Under the Privacy Act, many small businesses with annual turnover under $3 million are exempt from certain obligations, but there are important exceptions (for example, health services, trading in personal information or acting under a Commonwealth contract). Even if exempt, publishing a clear privacy notice is often best practice to build trust and meet customer expectations.

Protecting Your Brand

• Registering a business or company name doesn’t grant exclusive rights to your brand - trade mark registration does. Budget government fees per class, plus professional support if you want help strengthening the application.
• If brand protection is a priority, consider lodging a trade mark for your name and/or logo via Register Your Trade Mark.

Employment And Contractors

• If you’ll hire staff, factor in tailored Employment Contract templates, onboarding forms and core policies (for example, leave, conduct and WHS). If you’ll use contractors, put clear contractor or services agreements in place.
• Payroll software (for example, Xero or MYOB) is typically $20–$80+ per month. Don’t forget superannuation and workers compensation insurance in your budget.

What Professional Help Is Worth Budgeting For?

Some costs are optional but smart investments if you want things done properly and efficiently from the start.

Document Drafting And Advice

• Company Constitution: tailored rules for governance, decision-making and share mechanics.
• Shareholders Agreement: critical where there are multiple owners, vesting schedules or plans to raise capital.
• IP and brand protection: support to Register Your Trade Mark can reduce the risk of objections or gaps in coverage.
• Website legals: a fit-for-purpose Privacy Policy and Website Terms Of Use matched to your platform’s features and risks.

Company Formation Support

• Professional support for the application, ASIC filings and company registers - often packaged in a Company Set Up service - can save time and rework.
• If any director is overseas, confirm Australian Resident Director Requirements early so you don’t hit delays.

Indicative Ranges

• Simple, template-based legals: a few hundred dollars.
• Tailored documents (constitution, shareholders agreement, trade mark strategy): typically from the low thousands depending on complexity and scope.
• Spending a little more upfront on the right structure and contracts often prevents expensive disputes or rework later.

Ongoing Company Costs In Australia (Year 1 And Beyond)

Once your company is registered, there are recurring fees and compliance tasks to keep on top of. Build these into your budget now so there are no surprises later.

ASIC Annual Review Fee

• For a proprietary company, plan for an annual review fee of around $310 (subject to periodic changes). You’ll receive an annual statement to confirm details and pay the fee.

Registered Office Or Virtual Office

• If you use a third-party registered office or mail-handling service, continue to budget $300–$600+ per year.

Accounting, Bookkeeping And Software

• For small companies, support ranges from DIY with software ($20–$80+ per month) to a monthly or quarterly bookkeeper or accountant (hundreds to low thousands depending on transaction volume and complexity).
• Consider add-ons like payroll, receipt capture and reporting if you’re growing or hiring.

Payroll, Super And Workers Compensation

• If you employ staff, you’ll have ongoing payroll obligations (wages, PAYG withholding, superannuation) and workers compensation insurance. Costs depend on headcount, wages and state-based insurer rates. An accountant can help you set this up correctly.

Insurance

• Policies to consider include public liability, professional indemnity (if you give advice), product liability (if you sell products) and cyber insurance. Premiums vary by risk profile; many startups start with one or two core policies and expand coverage as they scale.

Website, Domains And SaaS

• Ongoing expenses include domain renewals (~$15–$30/year), hosting (~$10–$50+/month) and the software tools you rely on (CRM, email marketing, collaboration tools). Review these annually to keep costs under control.

Legal Maintenance

• Expect periodic updates to your contracts and policies as your business model changes. If you onboard new investors, you may need variations to your Shareholders Agreement and your Company Constitution.

Company Vs Sole Trader: When Do The Extra Costs Make Sense?

You don’t have to register a company to run a business in Australia. Many people start as a sole trader and incorporate later. So when is a company worth the extra setup and ongoing cost?

When A Company Often Makes Sense

• You want limited liability protection (separating business risks from personal assets).
• You plan to bring in co-founders or investors and issue shares.
• You expect to hire staff and enter higher-value contracts with customers or suppliers.
• You want to build a brand that can be sold, expanded or franchised down the track.

When A Sole Trader Might Be Enough (For Now)

• You’re testing a concept with minimal risk and revenue.
• You don’t need to share ownership or equity.
• You want to keep compliance and ongoing costs as low as possible while you validate the business model.

There’s no one-size-fits-all answer. The right time to move to a company is when the protections and opportunities outweigh the added cost and admin. If you’re unsure, we can talk through your options - including how a company affects how you pay yourself via salary, director fees or dividends - so you’re set up properly from day one.

How To Budget: A Practical Checklist

Here’s a simple way to structure your budget for company setup and year‑one costs.

One-Off Setup (Indicative)

• ASIC company registration: ~$576
• Company name reservation (optional): ~$59
• Business name registration (if trading name differs): $42 (1 year) or $98 (3 years)
• Registered office/virtual office (if required): $300–$600+
• Tailored governing docs (constitution, shareholders agreement): a few hundred to low thousands (depending on scope)
• Website setup (domain, hosting, build): $100–$5,000+ depending on DIY vs done-for-you
• Brand protection (trade mark, per class): government fees plus professional help if needed
• Director ID: mandatory, no fee (apply before appointment)

Ongoing (Year One And Beyond)

• ASIC annual review: ~ $310 per year
• Registered office/virtual office (if using): $300–$600+ per year
• Accounting software: $20–$80+ per month
• Bookkeeping/accounting support: varies by business size and complexity
• Payroll, super and workers compensation: depends on headcount and wages
• Insurance: depends on industry, revenue and risk profile
• Website hosting, domains and SaaS tools: review annually
• Legal updates: as needed for new products, team or investors (set aside a modest contingency)

Zero-Cost (But Essential) Steps

• ABN and TFN for your company: free to apply.
• GST registration (if required): free.
• Company registers and minute books: keep them up to date for compliance - a managed Company Set Up can include the right templates and guidance.

Key Takeaways

• Upfront costs generally include ASIC’s registration fee (~$576), optional name reservation and business name registration if you’ll trade under a different name.
• Plan for essential documents like a tailored Company Constitution and a Shareholders Agreement if there is more than one owner.
• Every director needs a Director ID (usually before appointment). If any director is overseas, check Australian resident director rules early.
• Website legals matter - consider a clear Privacy Policy and Website Terms Of Use, noting the small business exemption and its exceptions under the Privacy Act.
• Ongoing costs include ASIC’s annual review (~$310), accounting software and support, payroll and super, insurance and any registered office service.
• Protect your brand early with a trade mark application via Register Your Trade Mark - it’s more cost‑effective than rebranding later.

If you’d like a consultation on company setup costs and the right legal documents for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.