Published: May 2025, Updated March 2026
Registering a business in Australia involves several different registrations across multiple government bodies, and the exact requirements depend on your business structure. A sole trader applying for an ABN has a different checklist to someone setting up a Pty Ltd company. And both of them have different requirements to a partnership or trust.
The good news is that most of these registrations are straightforward and can be completed online within a few days. The bad news is that missing a step, choosing the wrong structure, or registering for the wrong things can create problems that cost time and money to fix later.
This guide walks through every registration you'll need, in order, with the actual costs and timelines for each step. Whether you're starting a side business as a sole trader or launching a company with employees, this covers the full process.
Before you register anything, you need to decide how your business will be structured. The four main options in Australia are sole trader, partnership, company (Pty Ltd), and trust.
Sole trader is the simplest structure. You operate under your own name or a registered business name, you report business income on your personal tax return, and you're personally liable for all business debts. There's no separate legal entity. Registration cost: free (just an ABN application).
Partnership is two or more people running a business together. Each partner shares income, losses, and liability. You'll need a partnership agreement (strongly recommended even though it's not legally required) and a separate TFN for the partnership. Registration cost: free for the ABN, plus legal costs for the partnership agreement.
Company (Pty Ltd) creates a separate legal entity. The company has its own TFN, its own tax obligations, and limited liability protection for its directors and shareholders (with some exceptions around director penalties). This is the most common structure for businesses that plan to grow, raise capital, or take on significant risk. Registration cost: $576 for ASIC company registration.
Trust is a structure where a trustee holds assets or runs a business on behalf of beneficiaries. Trusts are commonly used for asset protection and tax planning. They're more complex to set up and maintain. Registration cost: $576 for the corporate trustee (if using a Pty Ltd trustee) plus legal costs for the trust deed.
For a detailed comparison of the pros and cons, see our guide to company structure vs sole trader. If you're specifically considering whether a trust or company structure is right for you, see trust vs company: which business structure is right?.
If you're not sure which structure fits, talk to an accountant before you register. Changing structures later is possible but involves deregistering and reregistering, transferring assets, and potentially triggering capital gains tax. Getting it right the first time is worth the upfront advice cost.
An Australian Business Number (ABN) is your business's primary identifier. You need one to invoice other businesses without having tax withheld at 47%, to register for GST, to claim business tax deductions, and to deal with the ATO.
ABN registration is free and done through the Australian Business Register (ABR) at abr.gov.au. You'll need your Tax File Number (personal TFN for sole traders, or the entity's TFN for companies), your identity details, and a description of your business activity.
For sole traders and partnerships, your ABN is usually issued immediately or within a few minutes. For companies, you'll need to register the company with ASIC first (Step 3), then apply for the ABN using the company's details.
For a detailed walkthrough, see our guide on how to get an ABN in Australia.
If you're setting up a Pty Ltd company, you need to register with the Australian Securities and Investments Commission (ASIC). This can be done online through ASIC's portal or through a registered agent.
The registration fee is $576 for a proprietary limited company (as of 2026). You'll also pay an annual review fee of $310 to keep the company registered each year.
When registering, you'll need to provide the company name (check availability on ASIC's website first), the registered office address (must be a physical address in Australia, not a PO Box), details of at least one director (must be an Australian resident aged 18 or over), details of at least one shareholder, and the company's share structure.
Once registered, ASIC will issue your Australian Company Number (ACN), which you'll need for your ABN application, business bank account, and official documents.
For a step-by-step walkthrough including costs and timelines, see our guide to registering a company in Australia. For an explanation of the difference between ABN, ACN, and ARBN, see our ABN vs ACN vs ARBN explainer.
If you want to trade under a name that's different from your personal name (for sole traders) or your registered company name (for Pty Ltd companies), you'll need to register a business name with ASIC.
The cost is $44 for one year or $102 for three years. You can register through ASIC's website or the Australian Business Register.
Note that if your company name includes "Pty Ltd" and you're happy trading under that name, you don't need a separate business name registration. But most businesses register a trading name for customer-facing purposes.
A business name registration doesn't give you exclusive rights to that name. Trademark registration (through IP Australia) is a separate process and provides broader legal protection. If your brand name is important to your business, consider trademark registration as a follow-up step.
For the full process, see our guide to registering a business name in Australia.
If your business turnover is $75,000 or more per year (or $150,000 for not-for-profit organisations), you must register for GST. If you're below the threshold, registration is optional but can be beneficial if your customers are GST-registered businesses (they can claim the GST back, so it doesn't affect your pricing) or if you want to claim GST credits on business purchases.
GST registration is done through the ATO Business Portal or via your tax agent. Once registered, you'll need to lodge Business Activity Statements (BAS) either monthly or quarterly, depending on your turnover.
For a detailed guide on the registration process and threshold rules, see how to register for GST in Australia. For help with ongoing BAS obligations, see our BAS compliance checklist.
If you're going to employ staff, you need to register for Pay As You Go (PAYG) withholding. This authorises you to withhold tax from your employees' wages and remit it to the ATO.
PAYG withholding registration is done through the ATO Business Portal at the same time as your ABN or GST registration, or separately if you're adding employees later.
Once registered, you'll need to report withheld amounts on your BAS, issue pay summaries to employees, and lodge through Single Touch Payroll (STP) each pay cycle.
For a comprehensive guide to payroll obligations, see our Xero payroll setup guide and our overview of STP Phase 2 reporting.
While sole traders aren't legally required to have a separate business bank account, the ATO strongly recommends it, and any accountant or bookkeeper will insist on it. For companies, a separate bank account in the company's name is effectively mandatory.
A business bank account keeps personal and business finances separate (critical for tax reporting and audit trails), makes BAS preparation easier, and is required for merchant facilities, business loans, and most payment platforms.
For a comparison of business bank account options, see our guide to the best business bank accounts in Australia. And for more on why separation matters, see do you need a separate business bank account?.
Getting your accounting system right from day one saves enormous amounts of time and money down the track. Most Australian businesses use Xero, MYOB, or QuickBooks Online. For most SMEs, Xero is the strongest option due to its market share, integration ecosystem, and BAS/STP compliance features.
Set up your chart of accounts correctly from the start, enable bank feeds, and establish a reconciliation routine. If you're not sure how to configure your software properly, this is where an outsourced bookkeeper or finance team adds immediate value.
For a comparison of the main options, see our review of the best accounting software for Australian small businesses. For Xero-specific setup guidance, see our Xero accounting software guide.
Depending on your state and industry, you may need additional registrations including state or territory business licences, workers' compensation insurance (mandatory if you have employees, and the scheme varies by state), payroll tax registration (once your wage bill exceeds the threshold, which varies by state), and professional licences or industry-specific permits.
Workers' compensation is a common one that new business owners overlook. In most states, you're required to have a policy in place before your first employee starts. Penalties for non-compliance are significant.
For payroll tax thresholds by state, use our payroll tax threshold calculator. For a state-by-state overview, see our payroll tax guide.
Here's the full checklist in order: choose your business structure, register your company with ASIC (Pty Ltd only, $576), apply for an ABN (free), register a business name if needed ($44 to $102), register for GST if required (free), register for PAYG withholding if employing staff (free), open a business bank account, set up accounting software, check state-specific registrations and licences, and arrange workers' compensation insurance if employing staff.
Total cost for a sole trader: $0 to $102 (business name optional). Total cost for a Pty Ltd company: approximately $620 to $680 (ASIC registration plus optional business name).
How long does it take to register a business in Australia?
A sole trader can be fully registered (ABN, business name, GST) within 24 hours. A Pty Ltd company typically takes 1 to 3 business days for ASIC registration, then another day for the ABN and GST. Most businesses are fully registered within a week.
Do I need an accountant to register my business?
You don't need one for the registrations themselves, which are all straightforward online processes. But getting advice on the right structure before you register is highly recommended. The cost of a one-hour consultation ($200 to $500) is far less than the cost of restructuring later.
Can I run a business without an ABN?
Technically, yes, but any business that pays you can withhold 47% of your payment if you don't provide an ABN. In practice, operating without an ABN is not viable for any business that invoices other businesses.
What's the difference between a business name and a company name?
A company name is the legal name of your Pty Ltd entity (e.g., "Smith Holdings Pty Ltd") registered with ASIC. A business name is a trading name (e.g., "Smith Consulting") registered separately. A sole trader must register a business name if they want to trade under anything other than their personal name.
Do I need to register for GST when I start?
Only if you expect to turn over $75,000 or more in your first 12 months. If you're below the threshold, registration is optional. Many new businesses register voluntarily because it allows them to claim GST credits on startup expenses and looks more professional on invoices.
What happens if I choose the wrong business structure?
You can change your structure later, but it involves deregistering the old entity, registering the new one, transferring assets (which may trigger CGT), updating contracts and bank accounts, and notifying the ATO. It's doable but disruptive and potentially expensive. Get advice upfront.
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Disclaimer: This article is general in nature and does not constitute financial, legal, or tax advice. We review and update our articles periodically. At the time of writing, the information was accurate to the best of our knowledge. Registration fees and thresholds are subject to change. Always check current fees on the relevant government website and consult a qualified professional for advice specific to your circumstances.
Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.
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