How to Register a New Company in Australia: Step-by-Step Guide

August 21, 2024

How to Register a New Company in Australia: Step-by-Step Guide

Starting a new business is an exciting journey, but it can also be a bit overwhelming, especially when it comes to the administrative side of things. One of the first major steps you’ll need to take is registering your company. If you’re feeling a bit unsure about where to start, don’t worry—you’re not alone. This guide will walk you through the process of registering a new company in Australia step by step.

Decide on Your Company Structure

The first thing you’ll need to do is decide on the structure of your business. In Australia, there are several options available, but for many, setting up a company is the best choice. A company is a separate legal entity that offers limited liability protection to its shareholders, which can be a big advantage.

You’ll typically choose between a proprietary company (often called a “private company”) and a public company. Most small businesses in Australia register as proprietary companies, as they are easier to manage and have fewer regulatory requirements. However, the structure you choose will depend on your specific business needs and goals.

Choose a Company Name

Next, you’ll need to choose a name for your company. This might seem straightforward, but there are a few important things to keep in mind:

Check Availability: The name must be unique and not already in use by another company. You can check the availability of your desired name using the Australian Securities and Investments Commission (ASIC) website.
Compliance: Your company name must comply with ASIC’s naming rules. This means it cannot be misleading, contain certain restricted words, or be too similar to existing company names.
Reserve Your Name: If you’re not ready to register your company just yet, but you’ve found the perfect name, you can reserve it with ASIC for up to two months.

Register Your Company

Once you’ve decided on your company structure and name, it’s time to register your company with ASIC. You can do this online through the ASIC website, or you can engage a professional service, like Taxopia, to handle the process for you.

Here’s what you’ll need to provide during the registration process:

Company Details: This includes your company name, the type of company you’re registering (e.g., proprietary or public), and the state or territory where your company will be registered.
Director and Shareholder Details: You’ll need to provide details for each director and shareholder of the company, including their full name, address, and date of birth.
Registered Office Address: This is the official address of your company where ASIC and other government bodies will send correspondence. It must be a physical address in Australia.
Principal Place of Business: If your principal place of business is different from your registered office, you’ll need to provide this address as well.
Share Structure: You’ll need to specify how many shares your company will issue and the value of those shares. You’ll also need to outline the rights attached to these shares, such as voting rights and dividend entitlements.

Once you’ve submitted your application and paid the registration fee, ASIC will issue you with an Australian Company Number (ACN). This unique nine-digit number identifies your company and must be included on all your company’s official documents.

Get an Australian Business Number (ABN)

While not strictly part of the company registration process, applying for an Australian Business Number (ABN) is a crucial step for any new company. Your ABN is an 11-digit number that is used for tax and business purposes.

You can apply for an ABN online through the Australian Business Register (ABR) website. The process is straightforward, and you’ll need your ACN to complete the application.

Understand Your Tax Obligations

As a new company, you’ll have several tax obligations to be aware of:

Goods and Services Tax (GST): If your company expects to have a turnover of $75,000 or more per year, you’ll need to register for GST. This tax is added to most goods and services sold in Australia.
Pay As You Go (PAYG) Withholding: If you have employees, you’ll need to register for PAYG withholding. This system requires you to withhold tax from your employees’ wages and remit it to the Australian Taxation Office (ATO).
Company Tax: All companies in Australia must pay company tax on their profits. The current company tax rate is 25% for base rate entities (companies with an aggregated turnover of less than $50 million) and 30% for all other companies.
Fringe Benefits Tax (FBT): If you provide certain benefits to your employees, such as a company car, you may need to register for FBT.

Set Up Your Company’s Record-Keeping and Compliance

Once your company is registered, you’ll need to set up a system for keeping accurate records. This includes financial records, minutes of meetings, and records of resolutions.

Your company is also required to keep ASIC updated with any changes to your company’s details. This includes changes to your company’s directors, shareholders, or registered office address. You can update these details online through ASIC’s portal.

Open a Company Bank Account

Opening a separate bank account for your company is essential. This will help you keep your personal and business finances separate, which is important for both legal and tax purposes.

To open a company bank account, you’ll need your ACN, ABN, and a copy of your company’s constitution (if you have one). Most banks will also require identification for the company directors.

Consider Getting Professional Advice

Finally, while this guide provides an overview of the company registration process, there’s no substitute for professional advice. Setting up a company is a big step, and it’s important to get it right from the start.

At Taxopia, we specialize in helping small businesses navigate the complexities of starting a new company. Whether you need help with registration, tax compliance, or ongoing accounting services, we’re here to help. Get in touch with us today to learn more about how we can support your business journey.

Remember, it’s important to take your time and ensure everything is done correctly—getting it right from the start can save you a lot of headaches down the track. And if you ever feel unsure or need a helping hand, don’t hesitate to reach out for professional assistance. Your business’s success is worth it.

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