Company Setup Costs and Tasks in Australia: A Simple Guide to Business Registration (2026 Update)

Setting up a company in Australia is cheaper than most founders expect – at least on paper. The ASIC registration fee is a one-off $611. But that’s just the starting point. Once you factor in tax registrations, legal documents, accounting support, and ongoing compliance, the real cost picture looks quite different.

This guide walks through what you’ll actually spend, what tasks are involved, and what ongoing obligations to plan for.

What it costs at a glance

Let’s jump right in: How much does it cost to start a company in Australia? Here is a high-level overview of the common setup and early ongoing costs.

Setup task	Cost (AUD)	Notes
Company registration (ASIC)	$611	One-off government fee
Company name reservation (optional)	$62	Only if reserving before registration
Business name registration (if needed)	$45/year or $104/3 years	Only if trading under a different name
Trademark registration	Varies	IP Australia
Legal documents	Varies	Constitution, shareholder agreements
Accounting & tax registrations	Varies	ABN, GST, PAYG
Annual ASIC review fee	$329/year	Ongoing (proprietary company)

All fees reflect the 2025-26 financial year. ASIC adjusts fees annually from 1 July based on CPI – check ASIC’s website for the latest figures.

Some founders pay only the minimum ASIC company registration fee if they DIY everything. Others incur additional costs for legal advice, trademark protection, accounting support and outsourcing compliance.

The right level of spend depends on your structure, risk profile and how much professional support you want at the outset.

Register your company ($611)

When you register a company with ASIC, you create a separate legal entity distinct from its owners. Incorporation creates a company that can hold assets in its own name, limits the personal liability of shareholders to the amount they invest, and allows the business to issue shares to founders and investors.

Registering a business and incorporating it requires payment of a registration fee to ASIC. The costs are:

• $611 for private and public companies with shares.
• $503 for special-purpose companies (public).

As part of registration, you choose your company name. This is your company’s legal identity – the name on your ASIC certificate, your contracts, and your public record. You can trade under this name immediately without any additional registration.

Company naming rules

Your company name must comply with the Corporations Act 2001:

• Legal suffix required. A proprietary company’s name must end with “Proprietary Limited” or “Pty Ltd” (s 148(2)).
  
• No identical names. ASIC won’t register a name identical to an existing registered company or business name (s 147). Minor variations like punctuation or spacing are disregarded when comparing.
  
• No undesirable names. ASIC can refuse names that are offensive, misleading, or likely to be confused with a government body (s 149).
  
• Restricted words. Words like “bank”, “university”, “Commonwealth”, or “solicitor” require ministerial or ASIC approval before use (s 150).
  
• ACN as a name. You can use your Australian Company Number as your company name instead of a word-based name (s 151) – common for holding companies or special-purpose vehicles.

If you want to lock in a name before you’re ready to register, you can reserve it with ASIC for two months ($62). Most founders simply choose their name during the registration process.

Here at Lawpath, we aim to relieve business owners of the stress that can come with registering a company. We offer business registration services that simplify the process and ensure full compliance, including:

• An Australian Company Number
• A company certificate
• 13 company documents drafted for your company
• An ABN
• GST, PAYG & TFN

Service providers may charge additional fees in addition to ASIC’s government charge.

Do you need a business name?

A company does not need a registered business name if it trades under its registered company name. If you register “ABC Consulting Pty Ltd” you can trade under that name without needing to register an additional business. 

You only need to register a business name with ASIC if you plan to trade under a name that is different from your registered company name. For example, if your company is “Smith Holdings Pty Ltd” but you run a cafe called “The Morning Grind”, you need to register “The Morning Grind” as a business name. The company then trades as “Smith Holdings Pty Ltd trading as The Morning Grind.”

To register a business name, apply through the Business Registration Service on business.gov.au. You’ll need your Australian Business Number (ABN) and need to confirm the name isn’t already taken. As of the 2025-26 financial year, ASIC charges:

• $45 to register a business name for 1 year, and
• $104 to register a business name for 3 years.

Business name vs trademark

A common misconception is that registering a business name gives you ownership of that name or brand. In reality, business name registration is a legal disclosure requirement that lets customers know who is behind a business. It does not grant proprietary rights or stop others from using similar names.

To gain stronger brand protection, consider registering a trademark with IP Australia. A trademark gives you exclusive rights to a name, protecting your business.

Complete your setup tasks

Company registration is not a single step. ASIC incorporation is just one part of making your new company ready to trade.

Many founders assume that once they receive an ASIC certificate of registration, the setup is complete. However, you still need tax registrations, bank accounts, internal governance documents, and basic accounting systems before you can operate smoothly and meet your obligations.

Here is a quick company setup checklist:

1. Choose a company structure
2. Check company name availability
3. Appoint directors and shareholders
4. Obtain a Director Identification Number (Director ID) for every director through the Australian Business Registry Services – this is free but mandatory (failing to get one is an offence)
5. Register the company with ASIC
6. Apply for an ABN
7. Register for GST if required (mandatory if turnover is or is expected to be $75,000 or more)
8. Set up PAYG withholding if you’ll have employees
9. Prepare company governing documents (constitution, shareholders’ agreement)
10. Confirm your registered office address – every company must have a physical registered office in Australia (s 142), not a PO Box
11. Set up company registers – the Corporations Act requires you to maintain a register of members, a register of directors and secretaries, and other internal records
12. Open a business bank account
13. Set up accounting and tax registrations

Ongoing costs

Registering a business is not a one-time cost. There are annual fees to keep your business registered. These annual ASIC fees fund the maintenance of the corporate register, regulatory oversight, and the systems that keep your company’s registration status current and searchable by the public.

As of the 2025-26 financial year, fees for different companies are:

• $329 for proprietary companies.
• $67 for special-purpose companies (proprietary).
• $62 for special-purpose companies (public).
• $1,528 for public companies.
• $1,528 for a corporate collective investment vehicle.

ASIC issues annual review statements to all registered businesses, which include costs that you must pay. It is important to pay these fees on time, as late payment will incur a late fee. For proprietary companies, the late fee is $98 if paid within one month of the due date, or $411 after that – meaning a late proprietary company could owe $740 instead of $329.

Beyond ASIC fees, most companies also face recurring costs for accounting and tax compliance (bookkeeping, BAS lodgements, annual tax returns), industry-specific licences and permits, and insurance (professional indemnity, public liability, and workers’ compensation if you have employees – workers’ comp is mandatory).

Other costs to budget for

There are other costs your business should consider when incorporating. These may not necessarily include legal fees, but could encompass:

• Marketing and branding – logo design, website, domain name, social media setup and initial advertising spend.
• Equipment and office costs – computers, software subscriptions, fit-out costs, and any initial stock or tools needed to deliver your product or service.
• Hiring staff – recruitment costs, employment contracts, onboarding, payroll systems and superannuation setup.

Setup costs vary significantly depending on your industry, growth plans, and the scale of your operations.

A small, home-based consulting company might incur minimal upfront costs beyond registration and basic software. Meanwhile, a hospitality venue, medical practice, or manufacturer will likely need to invest heavily in premises, equipment, licenses, and staffing before opening their doors.

What founders often underestimate when starting a company

Many founders underestimate total setup costs because they focus almost exclusively on the ASIC registration fee and assume that is the entire cost of forming a company.

This can leave little budget for crucial steps such as legal documentation, tax structuring, and accounting systems.

Common blind spots include:

• Overlooking legal documentation, such as a tailored constitution, shareholder agreements between co-founders, and director resolutions, which help prevent disputes later.
• Confusing a company name with a business name and paying for a registration they don’t need.
• Misunderstanding ongoing compliance, including ASIC annual reviews, company changes that must be lodged, and obligations around record-keeping, director IDs, and reporting.
• Not budgeting for accounting support, although many businesses need help with ABN, GST and PAYG registrations, setting up cloud accounting, and preparing initial tax and BAS lodgements.

A legal advisor can take the complexity out of company set up, so you can focus on growing your business rather than drowning in legal details.

Key takeaways on company setup costs in Australia

• ASIC registration fees are only one part of the total cost of setting up a company, which also includes business names, legal documents, accounting support and other registrations.
• Businesses should budget for both initial setup and ongoing costs such as ASIC annual review fees, accounting, licences and insurance.
• Choosing an organised setup process – whether DIY with checklists or through an online platform – can reduce administrative complexity and minimise the risk of missed obligations.

FAQs

How much does it cost to register a company in Australia?

The ASIC fee to register a standard proprietary limited company is $611 (2025-26 financial year). However, total first-year costs are higher once you include legal documents, accounting, tax registrations, and any additional professional support.

What ongoing costs do companies pay in Australia?

Most companies pay an ASIC annual review fee ($329 for proprietary companies), plus accounting and tax compliance costs, software subscriptions, insurance, and any industry-specific licence renewals.

Many also incur ongoing costs for payroll, superannuation, and periodic professional advice.

Can I register a company myself with ASIC?

Yes, you can register a company directly with ASIC or via the Business Registration Service. However, many founders benefit from professional support to ensure the structure, documents, and registrations are set up correctly from day one.

Is starting a company more expensive than being a sole trader?

Yes, starting a company usually involves higher setup costs. In return, you gain a separate legal entity, limited liability, and greater flexibility for bringing in co-founders or investors.

Does my company need to register a business name?

Only if you trade under a name different from your registered company name. If your company name is your trading name, no business name registration is needed.

What names can I use for my company?

Your name must end with “Pty Ltd” for a proprietary company. It can’t be identical to an existing registered name, offensive or misleading, or include restricted words (like “bank” or “university”) without approval.

Start your company on the right foot

As a founder, you must understand the entire landscape of company setup costs. You’ll need to cover everything from ASIC fees and business names through to legal documents, accounting, and ongoing compliance.

That said, if you want to streamline this process, reduce admin, and feel more confident, Lawpath is here to help! We’ll walk you through every step and ensure full business compliance along the way.