Choosing to Setup a Company in Australia is a major step for business owners who want growth, credibility, and clearer legal protection. Most businesses register as a proprietary limited company (Pty Ltd), which creates a separate legal entity from its owners. This structure allows the company to own assets, sign contracts, employ staff, and limit personal liability in many situations.
What Does It Mean to Setup a Company?
When you Setup a Company, you register it with ASIC (Australian Securities and Investments Commission). The company then exists independently of its directors and shareholders. This separation is one of the main reasons businesses move from sole trader or partnership structures into a company.
Who Should Consider Setting Up a Company?
A company structure is often suitable if you want to:
Limit personal financial exposure
Bring in partners or investors
Build a business you may sell later
Improve credibility with banks and suppliers
Separate personal and business finances
However, for very small or early-stage ventures, a company can involve more compliance than necessary. Professional advice helps determine the right structure.
Key Legal Steps to Setup a Company
Before registration, you should prepare:
A compliant company name
A registered office address
Directors and shareholders (with director IDs)
Share structure and ownership percentages
Company rules (constitution or replaceable rules)
Registration is commonly completed online through the Australian Government Business Registration Service, with ASIC issuing an ACN and certificate once approved.
Costs Involved
The cost to Setup a Company includes an ASIC registration fee, which varies by company type. Additional costs may include legal advice, a tailored constitution, business name registration, trademark checks, and ongoing ASIC annual review fees.
Ongoing Compliance Obligations
Setting up the company is only the beginning. Directors must comply with duties under the Corporations Act 2001 (Cth), keep ASIC details updated, display the company name and ACN correctly, and meet tax, WHS, and workers’ compensation obligations, particularly in Queensland.
Why Legal Advice Matters
Many disputes arise because ownership, decision-making, or exit arrangements were never documented properly. Early legal advice helps avoid shareholder disputes, director liability risks, and costly restructuring later.
Frequently Asked Questions (FAQs)
1. How do I setup a company in Australia?
By preparing key details and registering online via the Business Registration Service, which ASIC processes.
2. How much does it cost to setup a company?
ASIC fees apply, plus optional costs like legal advice and accounting setup.
3. Do I need a director ID?
Yes, all directors must apply for a director ID before appointment.
4. Is a constitution mandatory?
No, but it is strongly recommended for companies with multiple owners.
5. How long does registration take?
Often within a few business days if details are complete.
6. Does a company limit all personal liability?
No, directors can still be personally liable in some situations.
7. Do Queensland laws apply after setup?
Yes, including WHS and workers’ compensation obligations.
8. Should I get legal advice before registering?
Highly recommended, especially for shared ownership or growth plans.
Contact Aylward Game Solicitors
📞 (1800) 217 217
📧 mail@aylwardgame.com.au
🌐 aylwardgame.com.au
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