Investors who plan on starting a business have a few options to choose from, as there are several types of companies in Australia. Each business structure has a set of advantages that should be taken into consideration. The attorneys at our law firm in Australia can help you choose the appropriate business structure, according to the planned size of the future enterprise and the need to expand it in the future.
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How can your team assist me in selecting types of companies in Australia in 2026?
Our lawyers in Australia will:
- establish a meeting with our client in which we will discuss the client’s business needs;
- based on this, we will make an assessment on the best way to engage in a business activity;
- we will present the advantages, disadvantages, obligations, tax requirements, fee policies applicable to the entity of choice;
- regardless of the option selected, we will offer complete company registration services and post-incorporation assistance (tax compliance, accounting, payroll, etc.).
| Quick Facts | |
|---|---|
| Types of legal entities in Australia |
There are several types of companies in Australia, as follows: – sole trader; – partnership; – limited company; – trust; – joint venture; – cooperative. |
|
The characteristics of the LLC |
The LLC in Australia is known as a proprietary limited company (Pty. Ltd.). It can be formed by 1 shareholder and maximum 50, who have limited liability against the debts of the company. The structure is a separate legal entity than the founders. |
|
The characteristics of the stock company |
The joint stock company is similar with the LLC, in the sense that investors also enjoy limited liability. However, this company type can sell its shares publicly, including on the Australian Stock Exchange. |
| The characteristics of the partnership |
It is set up by at least 2 partners. The liability of the partners is established based on the type of patnership they will set up. Currently, there are 3 types – general, limited and the incorporated limited partnership. |
| The characteristics of the sole trader |
It defines a structure that is set up by a natural person, with the purpose of carrying out a business activity in his/her own name. The taxation is made based on the personal income taxation principles. |
| The characteristics of the branch |
The branch is defined as a subdivision of a parent company located abroad. The branch is incorporated in Australia, but there isn’t any legal distiction between the branch and the parent company (which bears all the responsibility for the branch’s operations). |
| Legislation regulating company incorporation in Australia |
Corporations Act 2001. |
| Corporate taxes |
The types of companies in Australia can be taxed at different rates. For instance, corporate entities such as the Pty. Ltd. will be charged with a corporate income tax of 25% or 30%. The sole trader is charged with the personal income tax, ranging from 16% to 45%, depending on the income. Companies are also liable to the payment of the VAT (known as GST in Australia), imposed at a rate of 10%. |
| Foreign ownership rules |
Foreigners are allowed to own 100% of the shares of the companies they will set up in Australia. |
| Double tax treaties signed by Australia | 47 |
| Main company registration steps |
– choose a trade name and reserve it; – draw the statutory documents (replaceable rules or/and the constitution); – appoint directors and obtain a director’s identification number; – obtain a registered address; – open a bank account; – apply for tax numbers. |
| Corporate tax number required (yes/no) |
Yes |
| Resident director/shareholder requirements |
At least 1 director must have his/her residency in Australia. |
| Can investors modify the legal entity of a Australian company? |
Yes, it is possible to change various types of companies in Australia into other business forms. |
| Ways in which our team can assist investors |
Our team can prepare the documentation and assist in any of the registration steps mentioned above. We can assist in business immigration and can offer post-incorporation services (tax compliance, accounting, employment taxes, employment contracts, business agreements and partnerships, etc.). |
What are the main types of business structures in Australia?
The main forms of business entities available in Australia are as follows:
- the sole proprietorship – a simple business form where the founder is the sole owner and is also liable for the debts and obligations of the company;
- the proprietary company – this can take the form of a limited or unlimited company and there are several differences between them that can be explained by our attorneys in Australia;
- the public company – it has similar traits as the proprietary company, but the legal entity can be traded on the Stock Exchange;
- the partnership – a collaboration between individuals who wish to run a business together;
- the branch – used by foreign corporations that want to expand to the Australian market (the structure is dependent on the company abroad).
Are there any other entities available for registration in Australia?
Yes, for instance, the Australian legislation recognizes the trust, the cooperative and the joint venture as other legitimate ways to start a business endeavor, each one of them being useful in specific situations.
What are the most common ways to start a business in Australia in 2026?
Investors usually choose between private or public limited companies, as these provide limited liability to their founders. While the private company is usually registered by those who want to start a small to medium sized company, public companies are selected by large corporations.
Do I need to have a business address in Australia?
Yes, regardless of the legal entity you prefer for registration, it is mandatory to have a local address for your company. More so, it is required to complete state/territorial registration in this sense, even in the case in which the company will develop business operations at a national level. A company in Australia can have:
- a registered office address (the address where it receives its official documentation);
- a principal place of business (which can be another location).
What statutory documents should I sign?
This depends on the legal entity chosen for incorporation. In the case of a partnership, the founders set up the business by signing a partnership agreement. For those who choose a company (a legal entity with its own legal personality), the statutory documents are represented by:
- the replaceable rules established by the Corporations Act 2001;
- the constitution;
- a combination between the replaceable rules and the constitution.
Who can be the owner of a company in Australia?
There are various entities that can open a company in Australia. While the sole trader can only be registered by natural persons, other company types allow the following founders:
- individuals;
- other companies;
- state authorities.
What should I take into consideration when choosing a business structure?
When selecting the business form, investors need to take into consideration the manner in which the business will grow over time. While it is possible to change the business structure, it is always helpful to have a broader perspective on the future evolution of the company. The choice made by entrepreneurs will have an impact on the types of special licenses, the amount of taxes as well as personal liability.
In the infographic below, you can observe the main Australian business forms:
What are some of the basic rules to abide by when opening an Australian business?
In the list below, our lawyers in Australia present you few highlights of the registration process:
- the registration of any company type starts by reserving a company name with ASIC – this can be done by completing the Form 410;
- in Australia, a company name can contain the letters of the alphabet (from A to Z), numbers from 0 to 9, and a variety of special characters, such as “&”, “-“, “#”, “@” and others;
- the limited liability company (also known as proprietary company), can be incorporated by maximum 50 shareholders who mustn’t be employed in the company, regardless if the company is a public or a private one;
- when appointing directors or secretaries, both persons must have an age above 18 years old and must comply with residency requirements (they vary based on the selected company type in Australia);
- investors must also pay registration fees, as per the rules of the Corporation (Fees) Act 2001 and Corporations (Review Fees) Act 2003.
What are the current registration fees?
The registration fees are established based on the capital of the company – for company types in Australia that do not need to be incorporated with a share capital the registration fee is established at $503 in 2026, while those with a share capital need to pay a fee of $611.
What is the duration of the incorporation process in Australia?
The duration of the registration of a company type can vary based on the selected legal entity. The registration of a company type investors selected can be completed in a matter of 2 business days, once the application has been submitted, along with all the documentation required.
Do I need to pay fees for the registration of a business name in 2026?
In Australia, various tax-related matters enter into force starting with 1st of July and, up until July 2026, the following fees are imposed for the registration of a trade name:
- $45 – the application for the registration of a trade name valid for a period of 1 year;
- $104 – the application for the registration of a trade name valid for 3 years;
- $10 – application made by an entity to ASIC for obtaining information on the business name of a company;
- $20 – application made by an entity for obtaining current and non-current information on a legal entity.
Below, we invite you to watch a short video on the Australian business forms:
Contact our Australian law firm for a complete list of the services we provide to local and foreign investors interested in company formation.