Asia-Pacific · Company formation

Company formation in Australia

This suits founders who want a credible, well-regulated APAC base and can line up a genuine resident director. It is not built for a low-touch or purely nominee-run setup.

Last verified July 2026

At a glance

Entity
Proprietary limited company (Pty Ltd) limited by shares — the standard closely-held private vehicle; capped at 50 non-employee shareholders
Corporate tax
30% headline; a 25% 'base rate entity' rate applies where aggregated turnover is under A$50m and no more than 80% of income is passive (as of 2026). Non-residents get no franking-credit benefit, so the 30% rate is often the effective outcome.
Incorporation time
Company itself can be registered same-day to ~1-2 business days online; realistically longer for foreign founders because every director must first obtain a Director ID.
Minimum capital
No minimum paid-up capital. Shares must be issued for some value; companies are routinely formed with nominal capital (e.g. one A$1 share).
Resident director
Yes — at least one director must ordinarily reside in Australia (Corporations Act 2001 s201A). Non-residents may own 100% of shares but cannot satisfy this themselves; a genuinely Australia-resident individual (citizen, PR or qualifying long-term resident, 18+) must be appointed. It is a strict-liability requirement.
Audit
Small proprietary companies are generally exempt from audit and ASIC lodgement. A 'large' proprietary company — meeting 2 of 3 tests: consolidated revenue ≥ A$50m, gross assets ≥ A$25m, or ≥ 100 employees — must prepare audited financial reports. Note: a foreign-controlled small proprietary company must also lodge audited accounts unless specific ASIC relief applies.
Remote set-up
Yes — registration is fully online via ASIC or a registered agent; no notarisation of documents required. However, before appointment every director (including overseas ones) must personally obtain a Director Identification Number, which involves identity verification and can be slow for non-residents without myGovID.
Government fee
A$636 ASIC registration fee for a company with share capital (from 1 July 2026; was A$611 to 30 June 2026). Annual review fee for a standard proprietary company is A$342.
Best for
This suits founders who want a credible, well-regulated APAC base and can line up a genuine resident director. It is not built for a low-touch or purely nominee-run setup.

The process

  1. Reserve/choose an available company name and confirm the constitution or adopt replaceable rules; identify shareholders and at least one Australia-resident director
  2. Obtain a Director Identification Number for every director (non-residents verify identity through ASIC/ABRS processes) before they are appointed
  3. Lodge Form 201 with ASIC (directly or through a registered agent) with member, director and registered-office details; pay the A$636 fee and receive the ACN and certificate of registration
  4. Register for a Tax File Number, ABN and (if turnover warrants) GST with the ATO, then open an Australian bank account — typically the slowest step for foreign founders
What can go wrong
  • The resident-director rule is the real gate: you must find a genuinely Australia-resident individual willing to take on directors' statutory liability, not merely a paperwork nominee — breach is a strict-liability offence.
  • Foreign-controlled small proprietary companies can still fall into audit and financial-report lodgement obligations unless ASIC relief is obtained; don't assume 'small = no audit'.
  • Australian bank-account opening and Director ID issuance for non-residents are the practical bottlenecks and can add weeks despite fast ASIC registration; the 30% rate with no franking benefit for non-residents also erodes the headline appeal.

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