Leslie Massey
If you're looking to register an Australian Pty Ltd company, there are a few key things to keep in mind. Firstly, Pty Ltd companies form the vast majority of registered companies in Australia, with around 99% of businesses choosing this structure. To register, you can either go directly through ASIC (Australian Securities and Investment Commission) or use a service provider that deals with ASIC on your behalf. ASIC will provide you with an Australian Company Number (ACN), which is a unique 9-digit number for your company. You'll also need to consider the legal requirements, such as having at least one director living in Australia and a physical Australian address for your registered office. There are fees involved, which can vary depending on the method of registration and the service provider, ranging from a few hundred to a few thousand dollars.
| Characteristics | Values |
|---|---|
| Company name | Must be unique and not already registered to another company |
| Legal status | Must be included in the company name, e.g. Pty Ltd |
| Directors | Must have at least one director living in Australia |
| Company secretary | If there is one, at least one must live in Australia |
| Shareholders | Must have at least one but no more than 50 non-employee shareholders |
| Registered office | Must have a physical Australian address |
| Registration body | Australian Securities and Investment Commission (ASIC) |
| Registration method | Online or paper form |
| Registration fee | ASIC fee + service fee (if using an agent) |
| Annual fee | Paid on the anniversary date of registration |
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What You'll Learn
Registering a Pty Ltd company name
If you're registering a Pty Ltd company name in Australia, you must register it on the Australian Companies Register, which is managed by the Australian Securities and Investment Commission (ASIC).
Requirements and restrictions
There are a few requirements and restrictions for Australian Pty Ltd companies. These include:
- At least one director who lives in Australia.
- A physical Australian address for the registered office.
- If there is a company secretary, at least one must live in Australia.
- At least one shareholder but no more than 50 non-employee shareholders.
Choosing a company name
You can choose a company name that isn't already registered to another company or as a business name. You can use a new name, your Australian Company Number (ACN) or a name that you've reserved with ASIC. If you use a company name, it must show the legal status of the company. For example, "My Business Pty Ltd". You'll also need special approval to use certain words in your company name.
Registering your company
You can register your company and other business registrations through the Business Registration Service. If you do not choose a name, the ACN given to you when you register will be your company name, along with the legal status of the company. For example, your name could be "ACN 123 456 789 Pty Ltd".
Fees
There is a fee to reserve a name, and you must choose a state or territory to be registered in, even if you do business nationwide. You can register directly with ASIC by lodging a paper form, either over the counter at an ASIC office or by posting the form with a cheque. Registering directly with ASIC means that you need to provide the corporate register documentation required to be compliant with the Corporations Act 2001 yourself. There is also an annual fee on the anniversary date of registration.
If you use an agent to register your company, there will be a service fee on top of the ASIC fee. This fee can range from $34 to a few hundred dollars.
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Requirements and restrictions
To register an Australian Pty Ltd company, there are several requirements and restrictions that must be adhered to. Firstly, the company must have at least one director residing in Australia and a physical Australian address for the registered office. Additionally, if there is a company secretary, at least one of them must also live in Australia. In terms of shareholders, a Pty Ltd company must have a minimum of one shareholder and can have up to 50 non-employee shareholders. Pty Ltd companies are the most common type of company in Australia, with 99% of registered companies falling under this category, and are the preferred structure for small to medium-sized businesses.
When registering a Pty Ltd company, you must choose a name for your company and include its legal status in the name. For example, "My Business Pty Ltd". You can choose a unique name that is not already registered to another company, or you can use your Australian Company Number (ACN) as your company name. If you want exclusive rights to your company name, you will need to trademark it separately. Additionally, you will need special approval to use certain words in your company name.
All Pty Ltd companies must be registered with the Australian Securities and Investment Commission (ASIC) and will be assigned a unique 9-digit ACN. You can register directly with ASIC by submitting the required paper forms and documentation, or you can use an agent who will charge a service fee on top of the ASIC fee. The ASIC website provides information on annual statements, and compliance with the Corporations Act 2001. It is important to note that registering a company name does not protect your Intellectual Property (IP) or brand, and separate trademarking is required for that.
Directors of Pty Ltd companies must comply with the Corporations Act 2001 and are required by law to apply for a director identification number (director ID). The company must also register for a Tax File Number (TFN), Goods and Services Tax (GST), and Pay as You Go (PAYG) with the Australian Taxation Office (ATO) for tax compliance purposes. If the company's annual turnover exceeds AU$75,000, GST registration is mandatory. Additionally, if the company will be employing local staff, registering for PAYG is required. Depending on the industry and location, the company may also need to obtain specific licences or permits to legally operate.
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Australian Company Number (ACN)
To register an Australian Pty Ltd company, you must register it on the Australian Companies Register, managed by the Australian Securities and Investments Commission (ASIC). ASIC is responsible for issuing Australian Company Numbers (ACNs).
An Australian Company Number, or ACN, is a unique 9-digit identifier issued to companies registered under Australia's Corporations Act 2001. The number is typically printed in three groups of three digits, preceded by the letters "ACN", and must be quoted on all correspondence and invoices issued by the company. The purpose of the ACN is to clearly differentiate companies and subsidiaries with similar names, thereby reducing fraud and mistakes.
When registering a company, you will receive an ACN from ASIC. This number remains unchanged even if the company changes its name or is deregistered. Companies are required to display their ACN on certain documents, including the first page of all documents where the company name is listed. If a company uses a common seal, it must include the company's name, the words "Australian Company Number", and the company's ACN.
It is important to note that an ACN is different from an Australian Business Number (ABN). While most companies have both, an ABN is an 11-digit number used to identify any type of business, including sole traders, partnerships, and companies. An ABN is required for a business to operate in the GST system, claim GST credits, confirm business identity when ordering and invoicing, and access government online services. A company with an ABN may use it in place of the ACN on documents, preceded by the letters "ABN".
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Annual fees
Australian Pty Ltd companies are required to pay an annual fee on the anniversary date of registration. This fee applies whether you register directly with the Australian Securities and Investment Commission (ASIC) or through an agent. The ASIC fee does not include service fees charged by agents, which can range from $34 to a few hundred dollars.
ASIC issues annual review statements to all registered businesses, which include costs that must be paid on time to avoid late fees. As of 2023, annual review fees for different companies vary. For example, as of July 1, 2024, the ASIC fees for registering a Standard Pty Ltd company are $597. This fee is separate from the cost of registering a business name, which is an additional $42 per year as of July 2023.
It is important to note that registering a company name does not protect your Intellectual Property (IP) or brand. To ensure exclusive rights to your company name, you must trademark it. This process incurs additional costs, such as the $1,433 fee for applying for consent from the Minister for business names that include restricted words.
Additionally, there are ongoing annual costs associated with maintaining a business in Australia. These costs can vary depending on the business structure and legal requirements. It is recommended to seek professional advice or consult resources such as the ASIC website to understand the full extent of annual fees for your specific Pty Ltd company.
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Using a service provider
To register a Pty Ltd company in Australia, you must register it on the Australian Companies Register, managed by ASIC (Australian Securities and Investment Commission). All company incorporation in Australia is governed by ASIC.
You can complete the company registration process yourself using ASIC Form 201, which is available on the ASIC website, and by paying the applicable ASIC company fee. However, registering a company directly with ASIC means that you need to provide the corporate register documentation required to be compliant with the Corporations Act 2001 yourself.
Alternatively, you can use a service provider that has software that deals directly with ASIC and pay the relevant ASIC fees. You can deal with the service provider online or using hard copy forms, but in either case, you pay a fee to the service provider in addition to the ASIC company fee. The service fee is arbitrarily set by the service provider. An agent will usually include all the documentation you need, but beware of some providers who do not make it clear what is included and charge extra for required documents.
For example, eCompanies charges a service fee of $34, while another user on Reddit reported paying around $500 in fees to set up their Pty Ltd company using eCompanies. They also reported paying $250 in annual ASIC fees and $1,500 per year to their accountants. Another accountant quoted them $3,000-$5,000 to set up a Pty Ltd with a $2,500 yearly maintenance cost.
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Frequently asked questions
Australian Pty Ltd companies must have at least one director and one company secretary living in Australia, a physical Australian address for the registered office, at least one shareholder, and no more than 50 non-employee shareholders.
You can register your company with the Australian Securities and Investment Commission (ASIC) on their website or by lodging a paper form. You will need to pay the ASIC company fee or a service fee to a company registration provider.
Australian Pty Ltd companies are required to pay an annual fee on the anniversary date of registration. There may also be additional costs for preparing tax documentation.
