A number of business formats and different structures are available in Australia to incorporate a company in 2022. One needs to consider the important factors before registering a company in Australia. The business owners have to select from the options such as incorporating a foreign company, forming a new company or taking over an existing company.



Establishing a sole proprietorship in Australia is extremely easy and very reasonable. In a sole proprietorship, the owner takes complete responsibility for the entire business operations on his shoulders. The owner is solely responsible for all the losses and liabilities that may occur from the said sole proprietorship business. The owner doubles up as manager and sole controller of the entire sole-proprietorship business. The owner is solely responsible to file income tax returns with the help of his or her TFN (Tax File Number).


An LLP has a slightly more complex structure. The LLP is considered a separate legal entity. The shareholders and directors in the LLP are not personally responsible for any liability or debt which may arise out of company operations. The directors are only responsible for the regular business operations of the company. In Australia, the registration of an LLP can be done through the Australian Securities and Investments Commission (ASIC). The LLP company must file its tax returns annually with the ATO.


In a partnership firm, two or more people get together to start such a business. In Australia, the maximum number of partners allowed in a partnership firm is 20 people. Two types of business structures usually exist in Australia; Limited and General partnership firms. To form a partnership firm is a cheap and easy exercise in Australia. However, this said partnership firm is not regarded as a separate legal entity. This means, all the partners of the firm are liable for any liabilities or debts that may occur during normal business operations.

A partnership firm needs to file its annual tax returns with the ATO (Australian Tax Office) and an individual Tax File Number is required for this purpose. Instead of the company name, the partnership firm can also use the ACN (Australian Company Number) allotted to it. It is compulsory to have GST registration if the annual turnover for the said partnership firm is over $75,000.


  • LOWER TAX RATES: A small proprietary limited company pays a corporate tax of 27.5%, which is much lower than the highest tax rate for individuals, which currently stands at 49 percent in the highest tax bracket. Hence, conducting business through a private limited company enables an individual to reduce his or her firm’s overall tax bill in Australia.
  • ACCESS TO THE AUSTRALIAN MARKET: The incorporation of a company in Australia allows an individual to take advantage of Australia’s large and mixed-market economy. With a 24.6 million population and a GDP per capita of US$53,799.94 as of 2019, Australia offers some of the most diverse and lucrative market opportunities in the world. In addition to this above-mentioned point operating a company in Australia allows a business owner to take advantage of the numerous free trade agreements. This offers enormous potential as a foreign investor with access to Europe, Asia, and America.
  • ANONYMITY: One of the biggest advantages of creating a private limited company in Australia is that under Chapter 6D of the Corporations Act 2001, the said company is not required to disclose the details of its investors or shareholders. As a business owner, such an option allows for greater levels of anonymity whilst running a business. As the regulatory burden is much lower a business owner will be able to conduct business freely without the threat of competition trying to steal their customers.


  • Before applying for registration of a company in Australia, an individual must check for the availability of the proposed name. It is very important that an individual select a simple and unique name for their company which is not abusive and does not have any spelling errors. A proprietary company must have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its chosen name. The company can use the Australian Company Number (ACN) given to the company as their chosen name. ACN is a unique number which is given to a company by ASIC.
  • The Application Form 201 must be filed with the ASIC. This is necessary for registration as an Australian company by the ASIC. Every shareholder and director need to submit their written consent to become a shareholder and director of this company. It is also mandatory that at least one company secretary and one director in the company should be a naturalized Australian citizen. The company must ensure compliance with the government requirements related to taxation.
  • Depending upon the business and location of the company, the company has to comply with the respective taxation requirements in that state.
  • The Australian Securities & Investments Commission (ASIC) issues the certification of incorporation to companies. This is a legal document that proves that the company has been truly been incorporated in Australia with effect from the date of issue.

Incorporating a Company in Australia is a quick and easy process. This can be done online with our team of tax and legal experts at ACE ALLIANCE. Our team will address all your questions and queries about how to incorporate a company in Australia. Our team will also help you with the entire process of filing up to getting the registration complete. Our team will also assist you with the post registration formalities and compliances.