How to set up a Pty Ltd company in Australia

Starting a business in Australia? You’re in good company. There were 436,000 new startups in 2024, with many choosing the Pty Ltd structure¹. This blog go into detail about how to register and set up a Pty Ltd company in Australia, covering all the important rules and paperwork.

We’ll also introduce Wise as a way to manage your finances with a separate business bank account, which is one of the key requirements when registering a company.

Table of contents
What’s required How to set up a Pty Ltd company in Australia How long does it take to set up in Australia? Starting your Pty Ltd company the right way

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What’s required before setting up a Pty Ltd company in Australia

A Pty Ltd, or Proprietary Ltd, company is a structure that offers limited liability to its owners. It’s the most common type of business in Australia, but there’s lots to consider and get sorted before setting up and registering one.

The ASIC calls these formative steps “building blocks”. They are the legal and admin requirements that lay the foundation for your company to ensure it’s formed correctly.

Think about a business name director IDs

You’ll need a unique name for your company. If you aren’t ready to register just yet, ASIC lets you reserve one for up to two months before you start the process for a $61 fee². There’s also a handy tool to check the availability of different names before you decide.

All company directors also require a director ID — a unique identifier to verify who you are and prevent fraud. You’ll need this before you’re appointed, so don’t leave it too late to apply.

Outline company structure

Pty Ltd companies have directors and shareholders. You’ll need at least:

• One director aged 18+ who resides in Australia.
• One shareholder. This can be the same person as the director. You’re allowed up to 50 non-employee shareholders.
• The name and address of each shareholder
• A company address in a state or territory in Australia
• A registered office address

You’ll also have to decide how shares are distributed and the rules or constitution that guide how the company is internally managed. You can be governed by:

• The replaceable rules set out in the Corporations Act 2001, or
• A custom constitution that you create for the company covering things like governance, meetings, and dividends.
• A combination of both

Understand your obligations

As a director of a Pty Ltd, you will have more responsibilities and legal obligations to meet compared to operating as a sole trader or partnership. You’ll be expected to:

• Keep financial and legal records
• File annual reports with ASIC
• Pay company tax
• Follow all director duties under Australian law

These are high standards to meet, and there are risks of penalties and even criminal charges if you don’t meet your legal duties. That’s why it’s important to get to grips with all the obligations before you start a company.

Prepare for business finances

The government states that you need to open a separate business bank account when starting a company for tax purpose but also to help manage your business finances separately³.

This is also a good time to think about how you’ll receive payments from customers and pay suppliers as a company. A multi-currency account could give you a competitive edge if you’re working or doing business with clients in Australia and overseas.

• Wise Business offers multi-currency accounts and free to register which allows you to send money in 40+ currencies with no hidden markup on the mid-market rate. There’s just a quick online setup. Then you can start tracking expenses, managing cash flow and keeping all your finances organised.

Sign up for the Wise Business account! 🚀

Registering a Pty Ltd company in Australia

Registration is where your exciting business idea becomes a reality and transforms into a legally recognised entity. It’s not the whole part of setting up a Pty Ltd company, but it’s a critical step. You won’t be able to trade without it.

It involves submitting a Form 201 to ASIC and providing supporting details and documents to establish the legal structure your company will use. Registration has other benefits too (even though it’s mandatory). You’ll get:

• Limited liability protection for directors and shareholders
• The ability to enter into contracts as a company
• Compliance with corporate law legislation in Australia

It’s also a requirement for other activities that are crucial for setting up and running your business. For example, Wise will ask you for your Australian Company Number (ACN) and other registration details to verify your business bank account.

How to set up a Pty Ltd company in Australia

Registering your Pty Ltd status is one aspect of setting up a company. There are a few things you need to do before and after, too. Here’s an in-depth step-by-step guide on how to get your Proprietary Limited company legally up and running in 2025.

Step 1: Choose and reserve your company name

Start by searching ASIC’s database to find a name that’s unique and available. Make sure it’s a good fit for your brand, too. Your company name must always end with ‘Pty Ltd’ or ‘Proprietary Limited’ and not be misleading or too similar to existing companies.

Step 2: Decide on governance and share structure

This might be a trickier part if you don’t have experience with setting up businesses. You need to make a decision on:

• Share structure - Decide how many shares to issue and their value. Many companies opt for shares of equal value (like 100 shares at $1 each) to make it easier.
• Director appointments - Choose who will be responsible for running the company day-to-day. At least one must be over 18 and living in Australia. If you’re the sole owner, you can be the sole director. But having multiple directors can ease the burden of responsibility and offer guidance.
• Constitution choice - You can either adopt a constitution defined by the Corporations Act or create one for yourself. For smaller businesses, starting with the standard constitution is more straightforward.

Step 3. Gather your details

You’ll need most of the information you’ve gathered in preparation for setting up your company. This includes:

• The company name
• Registered office and principal place of business
• Details of all directors and shareholders
• Share structure (number and value of shares)
• Signed consent from everyone to take on their respective roles

Step 4. Register with ASIC

This is the main part of the process. You can register your company directly with ASIC via its online portal. This involves completing a digital Form 201, the key document for registering as an Australian company, with all the relevant details.

The process shouldn’t take long — you’ll typically get approval within minutes to a few days. There is a one-off registration fee of $576 to pay to register a company⁴.

Once you’ve paid and received approval, you’ll get:

• An Australian Company Number (ACN)
• A certification of registration
• A record of your company details

Step 5. Register for an ABN (and other obligations)

The ACN will identify your company, but you also need to apply for an Australian Business Number (ABN) to operate legally. You can get this at the same time when registering your company, or afterwards via the Business Registration Service.

You might also need to register for:

• Goods and Services Tax (GST) if you expert to earn more than $75,000 annually
• PAYG withholding if you plan to hire employees.

Step 6. Set up business banking

It’s a legal requirement to separate your personal and business finances. Traditional banks offer a range of accounts designed for business, but there can be very specific eligibility criteria. It can also take a while to get approval.

With business bank account alternatives like Wise Business, you can skip the conventional banking delays, queues and hidden fees. You can set up your business multi-currency account that’ll give you all the tools to manage money in Australia and across borders, and keep your cash flow under control from day one.

What's more, you'll benefit from the following 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 160+ 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! 🚀

Step 7. Obtain any licenses and permits

Depending on the type of company, you might need to acquire licences and permits to conduct legal business in states and territories across Australia. Check with the government in your region and any other relevant industry bodies to make sure you have the right authorisations before you start trading.

Step 8. Put compliance systems in place

Finally, you’ll need to create systems to maintain company records and meet all your legal obligations. The consequences for non-compliance can be severe, so don’t skip this step. Your company needs to be fully prepared.

• Company registers - Maintain a share register and directory with all the important company documents and director details.
• Annual meetings - Holding company meetings is part of the constitution rules. You should hold an annual AGM within the first 18 months and at least once a year thereafter.
• Financial records - Wise can help you with keeping accurate financial records and reconciliation for annual reports and tax. All income and expenses must be tracked.
• ASIC compliance - File annual reviews with ASIC and update company details after any changes.

How long does it take to set up a Pty Ltd company in Australia?

The actual registration process is quite fast. It can be completed on the same day and approved within a few business days. The preparation phase is likely to take longer, though. It depends on how quickly you can gather the documents you need, choose a structure, and set up your business banking.

Start your Pty Ltd company the right way

Preparation is the top priority when setting up a Pty Ltd company in Australia. Take the time to get everything in place before you start the process. There are quite a lot of legal obligations and specific rules unique to companies (share structure, constitution etc.) Fully understanding what your personal obligations are and what your company must do is essential. Then it’s a case of picking a name, registering your company, and sorting out your finances.

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Sources:

1. ABS Gov AU - Counts of Australian businesses, including entries and exits
2. ASIC - Register a company reserving a name
3. Business Gov AU - Set up your business bank account
4. ASIC - 201 application for registration as Australian company applicable fees