Strategy and development Australia

How to Register a Company in Australia: A Step-by-Step Guide (2026)

Emmanuel Bisi
Author

July 8, 2026
Published On

TL;DR

Registering a Pty Ltd in Australia requires at least one Australian-resident director, a Director ID obtained before lodgement, and an ASIC registration fee of AUD $636 (from 1 July 2026).
The full process — Director ID, ASIC registration, ABN, TFN and GST — typically takes 1 to 3 weeks end to end.
Foreign companies can own 100% of an Australian subsidiary and register entirely remotely, provided they appoint a resident director.

Australia consistently ranks among the world's most business-friendly destinations. It provides regulatory policy security, political stability and sound infrastructure, as well as direct access to the exciting Asia-Pacific markets. For French and European companies looking to expand into the Asia-Pacific region, setting up an Australian subsidiary is often the first and most strategic move.

But the process involves several sequential steps across multiple government agencies — ASIC, the ATO, and the ABRS — and missing Director ID requirements, registering under the wrong structure, or forgetting tax registrations are more common than you'd think, and all avoidable.

This guide walks you through every step in the correct order, with current 2026 fees, realistic timelines, and the most common mistakes to avoid.

Step 1: Choose the Right Company Structure

Before anything else, you need to select the legal structure that best suits your business. The main options are:

Sole trader: a simple structure where an individual operates under their own name with full personal liability. Not applicable for foreign companies.
Partnership: two or more people or entities sharing profits and responsibilities.
Proprietary Limited Company (Pty Ltd): a separate legal entity registered with ASIC, offering limited liability to its shareholders. This is the most common and recommended structure for foreign investors and international subsidiaries.
Trust: a legal entity managing assets for beneficiaries, often used for investment or estate planning.

The most common structure for small businesses is a Proprietary Limited (Pty Ltd) company, which limits shareholders' liability and is suitable for small to medium-sized enterprises.

For European companies entering Australia, the Pty Ltd is almost always the right choice. It allows 100% foreign ownership, can be registered remotely, and gives the subsidiary full legal standing to enter contracts, employ staff, and operate independently.

Step 2: Obtain a Director Identification Number (Director ID)

This is the most commonly missed step — and it must be completed before you can lodge your ASIC application.

The Director ID is a free 15-digit identifier every director must obtain via ABRS before appointment. Without it, your ASIC application cannot proceed.

Every proposed director must apply for their own Director ID personally — it cannot be done on their behalf. Applications are made through the Australian Business Registry Services (ABRS) website at abrs.gov.au.

Timeline: up to 14 days for overseas directors applying via paper form. Australian residents with a myGovID account can obtain their Director ID instantly online.

Who needs one: every director of an Australian company, regardless of nationality or country of residence.

Step 3: Choose and Check Your Company Name

Your company name must be unique and available. Search the ASIC Registers to confirm your chosen name is not already in use. ASIC will not register a name identical to an existing company or business name. The name must end with 'Proprietary Limited' or 'Pty Ltd'.

Key rules for company names in Australia:

Must be unique — not identical or deceptively similar to an existing registered name
Must include the legal suffix "Pty Ltd" or "Proprietary Limited"
Cannot include restricted or prohibited words without approval
If you do not choose a name, the Australian Company Number (ACN) ASIC gives you when you register will be your company name — for example, ACN 123 456 789 Pty Ltd.

You can check name availability for free on the ASIC Connect website. If you are not ready to register but want to reserve a name, you can apply to reserve it for up to 2 months.

Note: if you plan to trade under a name different from your registered company name, you will also need to register a separate business name with ASIC (AUD $47 for one year or $108 for three years from 1 July 2026).

Step 4: Prepare Your Company Details

Before lodging your application, gather the following information:

Directors and shareholders:

A proprietary limited company needs at least one director and one shareholder. Directors must be individuals aged 18 or over. Shareholders can be individuals or corporate entities, Australian or foreign. The same person can act as the sole director and sole shareholder.
At least one director normally needs to be resident in Australia. Foreigners can still register a company without relocating by appointing either an Australian-resident director or a professional agent service that offers local representation.
Director ID number for each proposed director

Registered office address:

Every company must have a registered office in Australia — not a PO Box — open to the public for at least 3 hours on business days. This is where ASIC sends legal documents. It can be your accountant's office, lawyer's address, or a registered agent service — common for overseas owners completing company formation remotely.

Share structure:

Number of shares to be issued and their value
Allocation of shares between shareholders

Company constitution:

Although not mandatory, having a company constitution can simplify your management structure. Without a constitution, your company will be governed by the rules provided under the Corporations Act.

Step 5: Lodge Your ASIC Application (Form 201)

With all details prepared and Director IDs in hand, you are ready to register.

The core of the process is lodging ASIC Form 201 with all correct details, including officeholder consents and your registered office address. You can register:

Online via the Business Registration Service (register.business.gov.au) — fastest method
Through a registered ASIC agent (accountant, lawyer, or corporate services firm) — recommended for foreign companies
Via paper form — available but significantly slower

Once ASIC approves your application, you will receive your Australian Company Number (ACN) — a unique 9-digit identifier — officially making your company a legal entity.

The actual ASIC registration process takes 2–3 business days once you submit your application online. If you need urgent registration and already have your Director ID, same-day registration is possible through ASIC's online portal.

ASIC registration fee from 1 July 2026: AUD $636 for a standard proprietary (Pty Ltd) company.

Step 6: Apply for Your ABN and TFN

Once you have your ACN, your next priority is applying for an Australian Business Number (ABN) and Tax File Number (TFN).

Australian Business Number (ABN):

An ABN is required for any entity carrying on an enterprise in Australia. Counterparties must withhold 47% from payments to a supplier that should have quoted an ABN and did not. Apply through the Australian Business Register (ABR) at abr.gov.au. ABN registration is free.

Tax File Number (TFN):

The TFN is the company's tax identity. Without it you cannot lodge a return, and the ATO verifies overseas directors and shareholders manually, so foreign-owned applications take weeks rather than days. Apply immediately after incorporation.

Most applicants apply for both ABN and TFN simultaneously through the integrated ABR form. The ABN is typically issued instantly online if details match ATO records. The TFN is typically issued within 28 days.

Step 7: Register for GST

GST (Goods and Services Tax) is Australia's 10% consumption tax. Registration is mandatory once your turnover crosses the threshold.

You must register for GST when your business has a GST turnover of $75,000 or more. You must register within 21 days of your GST turnover exceeding the relevant threshold.

If you are starting a new business and expect your turnover to reach the GST threshold in the first year of operation, you should register proactively.

Key GST facts for 2026:

GST rate: 10% on most goods and services
Threshold: AUD $75,000 annual turnover (AUD $150,000 for non-profits)
Registration fee: free
Reporting: quarterly BAS for most businesses; monthly for turnover above AUD $20 million
Failing to register within 21 days of meeting the threshold can trigger ATO penalties and a backdated GST bill

To register, you need an active ABN. You can add GST registration through the ATO's online services portal, through a registered tax agent, or by phone.

Step 8: Register for PAYG Withholding

If you intend to employ staff in Australia, you must register for Pay As You Go (PAYG) withholding before making your first payment to an employee.

PAYG withholding registration is required before the first payment to an employee or director — not by the end of the month. If you hire even one Australian employee, this step comes first.

PAYG withholding registration is done through the ATO and is free. It allows you to deduct income tax from employee wages and remit it to the ATO on their behalf.

Step 9: Open a Business Bank Account

A dedicated business bank account in the company's name is a legal and practical requirement. Most Australian banks will ask for:

Your ACN
Your ABN
Company incorporation certificate (issued by ASIC)
Photo ID for each director and authorised signatory

Foreign-owned companies can open Australian business bank accounts, though some banks require at least one director or signatory to be present in Australia. Several banks now offer remote account opening for established foreign entities — check with major Australian banks (ANZ, Commonwealth Bank, Westpac, NAB) or specialist business banking providers.

Step 10: Ongoing Compliance Obligations

Registration is the beginning, not the end. Once your company is live, you have the following ongoing obligations:

ASIC annual review:

The ASIC annual review fee is mandatory for every registered company, even if the business is dormant. The fee is tied to your company's annual review date, usually the registration anniversary, and is due within two months. From 1 July 2026, the annual review fee for a standard proprietary company is AUD $342. Missing it triggers automatic late fees of $102 (up to 1 month late) or $428 (over 1 month late).

Notifying ASIC of changes:

Notify ASIC of any changes to the company's registered office, principal place of business, directors, or business name within 28 days to avoid late fees.

Superannuation (if you have employees):

Employers must contribute a minimum of 12% of each employee's ordinary time earnings to their superannuation fund, paid quarterly by the 28th day after each quarter ends. Late payments attract the Superannuation Guarantee Charge and are not tax-deductible.

Financial records:

Maintain records of financial transactions, tax invoices, share registers, and officeholder consents. Store records securely for 7 years to comply with ATO and ASIC requirements.

Industry licences:

Certain industries (e.g. construction, healthcare, food services) require specific licences or permits. Check with business.gov.au or state/territory authorities for requirements.

How Expandys Can Help You Register Your Company in Australia

Setting up an Australian subsidiary involves at least seven sequential steps across three separate government agencies — ASIC, the ATO and the ABRS. For a European company doing this for the first time, without an Australian-resident director or a local address, the process quickly becomes complex.

Expandys has been supporting French and European companies with Australian market entry for over 17 years. Our Sydney-based team handles the entire registration process on your behalf, so you are not navigating Australian government portals alone.

What we take care of:

Director ID coordination — we guide each proposed director through the ABRS application process and ensure IDs are in place before lodgement
ASIC lodgement (Form 201) — full preparation and submission of your company registration application
ABN, TFN and GST registration — applied for immediately after your ACN is issued, in the correct sequence
Resident Director service — if you do not have an Australian-resident director, one of our qualified Sydney-based professionals acts as your statutory director, satisfying ASIC's residency requirement while you retain full operational control
Registered office address — we provide a compliant Australian registered office address for ASIC purposes
Ongoing compliance — annual ASIC review, financial records, tax filings and superannuation management handled by our local accounting team
Employer of Record (EOR) — if you want to start hiring in Australia before your subsidiary is registered, our EOR service lets you employ Australian staff legally from day one

Most of our clients go from zero to a fully registered, tax-compliant Australian subsidiary in 3 to 5 weeks. Foreign-owned companies registering remotely typically take slightly longer due to the Director ID paper process — we factor this into your timeline from the start.

Download our Australian Company Setup Checklist — free PDF →

Speak to our Australia team →

Cost Summary: Registering a Company in Australia in 2026

Item	Cost (AUD)	Notes
ASIC company registration (Pty Ltd)	$636	From 1 July 2026
Director ID	Free	Via ABRS — required before lodgement
ABN registration	Free	Via ABR
TFN registration	Free	Via ATO/ABR integrated form
GST registration	Free	Via ATO — mandatory above $75K turnover
PAYG withholding registration	Free	Via ATO — required if employing staff
Business name registration	$47 (1 yr) / $108 (3 yrs)	If trading under a different name
ASIC annual review fee (Pty Ltd)	$342/year	From 1 July 2026 — due on registration anniversary
Late ASIC review fee	$102–$428	Applies automatically if missed
Resident director service	$1,500–$3,500/year	If no Australian-resident director available
Registered office address	$200–$800/year	If using a virtual office or agent service

Total government fees for basic registration: AUD $636 (plus $342 annually thereafter).

Professional services fees (accountant, lawyer, or specialist firm) vary depending on company complexity and whether you require a resident director service.

Can a Foreign Company Register in Australia Without Being Present?

Yes — and this is one of Australia's most important advantages for international expansion.

It is possible to own and register a company completely as a foreigner. Foreigners can achieve 100% ownership, and Australia company registration can be done completely remotely through ASIC online, by assigning a resident director locally or using an agent to comply with the one-resident-director rule.

Key requirements for foreign-owned Pty Ltd registration:

At least one director must ordinarily reside in Australia
A registered office address in Australia (not a PO Box) must be provided
All directors need a Director ID — overseas directors apply via paper form (up to 28 days)

If you do not have an Australian-resident director available, specialist firms like Expandys provide Resident Director services — a qualified Australian professional acts as your statutory director, satisfying ASIC's residency requirement while you retain full operational control of the business.

Alternative: Employer of Record (EOR) before subsidiary creation

If you want to start trading or hiring in Australia before your subsidiary is fully registered, an Employer of Record allows you to employ Australian staff legally, manage payroll and compliance, and begin operations immediately — without needing a registered entity. This is the approach most European companies take during the initial market validation phase.

Frequently Asked Questions: Registering a Company in Australia

How long does it take to register a company in Australia?

The ASIC company registration itself takes 1 to 3 business days online once all documents are submitted. However, the full end-to-end process — including obtaining a Director ID (up to 14 days for overseas directors), applying for an ABN and TFN (up to 28 days), and completing GST registration — typically takes 2 to 4 weeks for a foreign company. If your proposed directors are already Australian residents with myGovID accounts, the process can be completed in as little as 3 to 5 business days.

Can a foreign company own 100% of an Australian subsidiary?

Yes. Australia imposes no minimum local ownership requirement for proprietary limited (Pty Ltd) companies. A French, British, Indian or any other foreign company can own 100% of an Australian Pty Ltd. The only mandatory requirement is that at least one director ordinarily resides in Australia. Foreign companies with more than 50% foreign ownership may have additional ASIC financial reporting obligations once the subsidiary reaches certain thresholds.

Do I need an Australian address to register a company in Australia?

Yes — every Australian company must have a registered office address in Australia. This cannot be a PO Box and must be accessible to the public for at least three hours on business days. For foreign companies registering remotely, options include using your accountant's or lawyer's address, a registered agent service, or a professional virtual office. Expandys provides registered office and resident director services as part of its Australian subsidiary setup offering.

What is the difference between an ACN, ABN and TFN?

These are three separate identifiers issued by different government bodies. The ACN (Australian Company Number) is a 9-digit number issued by ASIC when you register your company — it identifies your company as a legal entity. The ABN (Australian Business Number) is an 11-digit number issued by the ATO via the ABR, used for all tax and business dealings. The TFN (Tax File Number) is your company's income tax identity, also issued by the ATO, required to lodge tax returns. Every registered company needs all three. The ACN comes first; the ABN and TFN are applied for immediately after.

What are the ongoing compliance costs after registering in Australia?

The main ongoing government cost is the ASIC annual review fee — AUD $342 per year for a standard Pty Ltd from 1 July 2026, due on your company's registration anniversary. Beyond that, companies must lodge a tax return annually, submit Business Activity Statements (BAS) quarterly if registered for GST, pay superannuation contributions of 12% of each employee's ordinary earnings quarterly, and notify ASIC of any changes to directors, addresses or shareholding within 28 days. Professional accounting and compliance fees depend on company size and complexity.

Ready to Register Your Australian Company?

Setting up an Australian subsidiary involves multiple sequential steps across ASIC, the ATO and the ABRS — and for foreign companies, the Director ID and resident director requirements add layers that are easy to miss.

At Expandys, we have been supporting European and international companies with Australian subsidiary creation for over 17 years. Our Sydney-based team handles the full registration process — ASIC lodgement, ABN and TFN applications, GST registration, resident director services, and ongoing compliance — so you can focus on building your business, not navigating government portals.