Open a LLC in Australia

Our team of lawyers in Australia is able to help investors register the LLC that suits their business needs (small or large LLCs) and at the same time understand the principles for taxation and management for this business form.

What is a limited liability company in Australia?

Those who want to open a limited liability company in Australia have to know that this company type is the most popular business form selected for incorporation. It represents a legal entity in which investors enjoy limited liability against company debts. The business form is set up as a private entity and its official name is proprietary limited company (Pty. Ltd).

What are some of the characteristics of a LLC in Australia?

The list below contains some of the most important requirements for the private limited company in Australia:

• shares – the private company can privately issue shares;
• directors – the private company must have at least one director who is also a resident;
• corporate meetings – a proprietary company is not required to hold an annual general meeting (only public companies must), although there are no special requirements for the management of the company.

What are the main steps in registering a LLC in Australia in 2026?

A limited liability company is incorporated as per the Corporations Act. Some of its registration steps are presented below by our team of lawyers in Australia:

1. the company can have a maximum of 50 shareholders;
2. the minimum number of shareholders is one;
3. the application for registration must be filed with the Australian Securities and Investments Commission (ASIC);
4. the registration starts by reserving a suitable trading name;
5. for the incorporation, investors must prepare that company’s statutory documents, which set out how the company is governed (the company gains legal personality when ASIC registers it);
6. these must include provisions with regards to the internal management rules of the company, its shareholding structure, the rights and the obligations of the parties involved in the company,
7. it is also necessary to appoint directors;
8. the legal entity must register with the local institutions for tax purposes;
9. it is required to have an official business address.

How can investors complete the registration in 2026?

Investors (or their legal representatives, such as our lawyers in Australia) can complete the registration process online. As of 2019, only digital registrations are possible, as the main forms concerning the incorporation of legal entities are available only in digital format.

What institutions are involved in the incorporation process of a Pty. Ltd.?

Besides ASIC, which is the main authority responsible for the registration of local businesses, investors must obtain different documentation and approvals from other institutions, such as:

1. the Australian Business Register (ABR), which is responsible for the issuance of the Australian Business Number (ABN); the company’s own identification number, the Australian Company Number (ACN), is issued by ASIC on registration;
2. the Australian Taxation Office – it must be contacted for tax-related matters.

Do I need to pay registration fees in 2026?

When you will register a limited liability company in Australia in 2026 you have to know that certain registration fees apply. Starting with 1 July 2026, the Australian authorities apply new fees, therefore those who want to set up a business in 2026-2027 will need to pay a registration fee of $636.

What are the bylaws of the Pty. Ltd.?

This company type gains its legal personality on registration by ASIC; its internal rules are set by its governing documents. The Australian legislation provides for three main options in this case, which are listed below by our lawyers in Australia:

1. the company constitution;
2. the replaceable rules;
3. a combination of a company constitution and the replaceable rules.

Who can be the shareholders of a Pty. Ltd?

The shareholder of the company can be represented by a natural person, a foreign individual interested in developing a business activity in Australia, or by a foreign company.

Do investors need to abide by any residency requirements in 2026?

The company does not require a resident shareholder, so it can be formed with 100% foreign ownership.

Are there any restrictions regarding the activities of a Pty. Ldt.?

While the limited liability company can engage in a variety of business activities, it must be noted that is it forbidden to carry out fundraising activities that involve raising money from the public.

Does the Pty. Ltd. need to register for VAT purposes?

In the case in which the company has an annual turnover above AUD$75,000, it is necessary to register (on a mandatory basis) for GST (Goods and Services Tax, Australia’s VAT).

What are the main reporting obligations?

Given that this business form is set up for commercial purposes, it will need to abide by local accounting and tax formalities, which result in certain reporting obligations. For the Pty. Ltd., the following apply:

1. the company must prepare, at the end of the financial year, the annual financial reports;
2. the financial reports must be audited, in the case in which the legal entity is considered a large business;
3. the documentation must be submitted in maximum 4 months from the end of the financial year;
4. of course, if the company is a VAT payer, VAT reports must also be prepared.

What constitutes a large Pty. Ltd.?

The company (and any other companies it controls – if this is the case) must meet 2 of the following 3:

1. the consolidated annual revenue is minimum AUD 50 million;
2. the annual gross assets have a value of at least AUD 25 million;
3. it employs more than 100 workers.

For more detailed information about the formation of a LLC, please contact our law firm in Australia.