Cost to set up a Pty Ltd company in Australia

If you’re thinking of setting up a Pty Ltd company in Australia, it’s good to know the costs involved before you get started. With registration fees and paperwork, plus additional ongoing costs, entrepreneurs are often unsure about the true financial reality of running a company.

This blog will define what a Pty Ltd company is and the benefits of this structure. We’ll then list the upfront costs and additional fees to consider, to give you a much clearer idea of the full cost of setting up a Pty Ltd company in Australia.

The local currency is the Australian Dollar (AUD). In this blog, it is simply denoted as $.

Table of contents
Understanding Pty Ltd in Australia Upfront costs of setting up a Pty Ltd company Additional costs involved Wise Business: A smarter way to manage company finances FAQs

Understanding Pty Ltd in Australia

A Pty Ltd company, short for Proprietary Limited, is a type of private business structure that creates a new legal entity and separates personal assets and protects them if the business fails (or gets sued). The name ‘Pty Ltd’ actually has two distinct meanings:

• Proprietary - The company can have a maximum of 50 shareholders and can’t offer shares to the public.
• Limited - The liability of shareholders is limited to the amount they’ve paid for their shares.

Pty Ltd is the most common company type for small businesses in Australia¹.

A Pty Ltd company is run by at least one director who makes important day-to-day decisions and is owned by the shareholders who approve major changes. As it’s a separate legal entity, the company takes out contracts and pays taxes in its own name and can distribute profits as dividends. It must also register with ASIC and lodge annual financial records.

Benefits of setting up a Pty Ltd structure for a business

If you’re still weighing up sole trader vs Pty Ltd company, or other business types, it’s useful to know the key benefits of setting up a company.

Here are some of the advantages:

• Limited liability protection - Personal assets like your home or car are protected from business debts, as liability is limited to the value of shares held in the company.
• Professional image - Registering as a company acts as a ‘seal of approval,’ a way of demonstrating you’re a credible and trusted business.
• Access to funding - It’s much easier to apply for a business loan with a proper company structure, and you’ll have a better chance of attracting investors and other third-party funding.
• Tax planning - Companies are taxed at a flat rate of either 25% or 30%, which can be lower (and easier to plan for) than the fluctuating personal income tax rates for higher earners.
• Continuity - A Pty Ltd company continues to exist even if shareholders or ownership changes, unlike a sole trader or partnership.
• Asset protection - Business assets are owned by the company, and profits belong to it, which provides clear separation for legal and tax purposes.

What are the upfront costs of setting up a Pty Ltd company?

There are certain ‘non-negotiable’ fees you’ll need to pay straight away to establish a Pty Ltd company. These can guide your baseline budget.

ASIC company registration - $611

ASIC states that it’s mandatory to register a company on the Australian Companies Register. You can do this online using ASIC’s digital portal and paying a one-time fee of $611 (from July 2025)². This covers the cost of processing your company registration via a digital form 201 and issuing your Australian Company Number (ACN).

Business name registration - Up to $104

You can use your company’s legal name to trade, but if you plan on using something different, you’ll have to register a business name with ASIC.

The business registration fees are³:

• $45 for 1 year, or
• $104 for 3 years

Reserving a company name - $62
If you’re not quite at the stage where you can set up a company but still want to claim a name, you can reserve a company name for up to 2 months for $62⁴.

Australian Business Number - $0

You’ll need an 11-digit Australian Business Number (ABN) to register for GST and report taxes. Fortunately, cost for applying for an ABN is free⁵. You can get it easily through the Australian Business Register at the same time as you register a company.

Director Identification Number - $0

All Pty Ltd company directors must get a Director Identification Number (director ID). Again, you can get this for free, but you’ll need to be approved and get your ID before you start working⁶.

GST registration - $0

If your Pty Ltd company’s turnover exceeds $75,000 annually, you must register for Goods and Services Tax (GST)⁷. While registration with the Australian Taxation Office (ATO) won’t cost you a cent, the compliance requirements with record keeping and accounting software might involve additional fees (which we’ll cover in the next section).

What are the additional costs involved when setting up a Pty Ltd company?

Beyond the mandatory ‘building blocks’ and government fees for getting a Pty Ltd company started, there are other costs that need to be factored in, like getting legal advice, taking out insurance, and paying for accounting software.

Let’s look at some of these in more detail.

Professional services

First-time company owners often choose to hire professionals to make sure everything is structured correctly and compliant with Australian regulations.

You mig

• Lawyers to draft your Pty Ltd company constitution or shareholders’ agreement. Expect to pay between $600 to $2,000+.
• Accountants or tax advisers to set up your financial systems so they meet compliance requirements. Expect to pay between $300 to $1,500+.

Business bank account

You’ll need to open a separate business bank account as a Pty Ltd company — it’s a legal requirement. Some banks offer free business banking accounts (or waive the fee for the first year), but you might have to pay for extras like staff-assisted transactions to cash cheques, or receive payments from overseas.

Standard monthly account-keeping fees usually average at around $10 per month.

Trademarks and licences

Some businesses in industries like construction or food services require specific licences or permits to operate.

These costs will vary by state or territory and sector. For a building contractor licence in New South Wales, for example, the fee ranges from $416 to $1,695⁸.

If you plan to trademark your business or logo, IP Australia charges $250 to $400 per class of goods or services⁹.

Insurance

Getting insurance will protect your business and employees (if you have them). There are certain types of insurance you need to take out by law in Australia. These include:

• Public liability insurance
• Professional indemnity insurance
• Workers’ compensation insurance (mandatory if you’re hiring employees)

The exact cost will depend on your company's size and coverage, but budget for at least $1,000 per year.

Domain name

If you’re building a website for your company, you’ll need a domain name. This isn’t usually too expensive. Research by GoDaddy states that it only costs between $0.01 to $24 per year to get a top-level ‘.au’ domain¹⁰.

Accounting setup

Managing company finances is more complex under a Pty Ltd structure compared to a sole trader. You’ll need to prepare balance sheets and profit and loss statements to proper accounting standards, and file a company tax return each year.

That’s why it’s useful to invest in reliable accounting software like Xero or QuickBooks to set up and automate things like invoicing and payroll so everything aligns with ATO requirements. Plans start from around $29 to $60 per month, depending on your needs¹¹.

Wise Business: A smarter way to manage company finances

After navigating the initial registration fees and administrative hurdles, finding a cost-effective way to manage your company finances is the next logical step.

The Wise Business account helps solve the challenge of banking complexity by offering a streamlined alternative to traditional providers. You can open an account online to start sending and receiving payments, and it integrates seamlessly with accounting tools like Xero or QuickBooks to keep your bookkeeping locally compliant.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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FAQs on Pty Ltd costs

1. How much does it cost to close a Pty Ltd company in Australia?
If you choose to close your Pty Ltd company, ASIC charges a ‘voluntary’ deregistration fee of $50¹². You will need to settle all outstanding debts and tax obligations before applying, and meet several other criteria outlined by ASIC, such as the company not conducting any business. You can apply for deregistration using a 6010 form.

2. How long does it take to register a Pty Ltd company in Australia?
It only takes around 15 minutes to register a Pty Ltd company in Australia via the Business Registration Service. You should then get approval within two working days if you’ve paid the one-time fee and provided all the required documents¹³.

3. What is the difference between a company name and a business name?
A company name is the legal name of a Pty Ltd entity registered with ASIC. It must have ‘Pty Ltd’ at the end. This is the structure and name that offers legal protection and appears on documents and contracts. A business name is what a company simply uses for marketing and trading — the name it tells customers.

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Sources:

1. ASIC - company types
2. ASIC - company fees
3. ASIC - business name fees
4. ASIC - Register a company
5. Business Gov AU - Register for an Australian Business Number
6. ABRS Director identification number - Who needs to apply and when
7. Business Gov AU - Register for Goods and Services Tax
8. NSW Gov AU - Fees for contractor licences
9. IP Australia - Trademark fees
10. GoDaddy - How much does a domain name cost and why
11. QuickBooks Australia - Pricing
12. ASIC - Voluntary deregistration of a company
13. Business Gov AU - Register a company