How Much Does It Cost to Set Up a Company in Australia?

DIY vs. Using a Solicitor or Accountant

Setting up a company in Australia can be done in several ways, each with its own costs, benefits, and risks. Here’s a comprehensive guide to help you choose the best approach for your business.

What You'll Learn

• DIY vs. Using a Solicitor or Accountant

1. Setting Up a Company Yourself (DIY via ASIC)

Process & Fees:

• ASIC Registration Fee: $576 (as of July 2025) for a proprietary limited company (Pty Ltd).
• Online Application: You can register directly through the ASIC website or via an online provider (e.g., EasyCompanies, Lawpath, etc.).
• Time Required: Typically 30–60 minutes if you have all details ready.

What You Get:

• Company registered with ASIC
• ACN (Australian Company Number) issued
• Basic replaceable rules (default constitution)

Pros:

• Cheapest option
• Immediate registration

Cons:

• No tailored constitution—defaults to ASIC’s replaceable rules
• No legal or tax advice
• Risk of mistakes in the company setup or structure
• No compliance guidance

2. Setting Up a Company with a Solicitor

Typical Costs:

• Legal Fees: $800–$2,500 (varies by firm and complexity)
• ASIC Registration Fee: $576 (in addition to legal fees)
• Total: $1,400–$3,000+ (including ASIC fee)

What You Get:

• Tailored company constitution (customised to your needs)
• Legal advice on structure, governance, and compliance
• Preparation of all company documents (minutes, registers, share certificates)
• Ongoing legal support (optional, may be extra)

Pros:

• Constitution tailored to your business and shareholders
• Legal risk minimised
• Advice on director/shareholder rights and obligations

Cons:

• Higher upfront cost
• May take longer (1–5 days)

3. Setting Up a Company with an Accountant

Typical Costs:

• Accountant Fees: $800–$2,500 (varies by firm and inclusions)
• ASIC Registration Fee: $576 (in addition to accountant’s fees)
• Total: $1,300–$2,500+ (including ASIC fee)

What You Get:

• Company registration with ASIC
• Tailored constitution (usually via a legal template)
• Tax and structuring advice (e.g., GST, PAYG, shareholder loans)
• ABN, TFN, GST registration (often included)
• Set up of company registers and compliance documents

Pros:

• Structure optimised for tax and business goals
• Ongoing accounting and compliance support
• Advice on company setup, tax registrations, and future reporting

Cons:

• Higher cost than DIY
• A constitution may be less tailored, with AWTS its 24 hours.

4. ASIC Direct vs. Constitution Through Accountant/Solicitor

FeatureASIC Direct (DIY)Accountant/Solicitor Setup

Upfront Cost

$576

$1,300–$3,000+

Constitution

Replaceable rules (basic)

Customised constitution

Legal/Tax Advice

None

Included

Risk of Errors

Higher

Lower

Ongoing Support

None

Available (extra fees)

Compliance Guidance

None

Included

Key Takeaways

• DIY via ASIC is cheapest but riskiest—best for simple, single-director companies with no complex needs.
• Solicitor setup provides a tailored constitution and legal protection, ideal for multiple shareholders, investors, or unique governance needs.
• Accountant setup is best if you want tax structuring, ongoing compliance, and a constitution that covers most business needs.

Tip: If you’re unsure, investing in professional advice at the setup stage can save you thousands in legal or tax issues later.

Want more tailored advice for your industry or situation? Reach out to Australia Wide Tax Solutions for a consultation.

How do I get help with this from the ATO?

The ATO provides guidance through ato.gov.au, the Small Business Support Line (13 28 66), and Online Services for individuals and businesses. For complex situations, a registered tax agent provides advice tailored to your specific circumstances and professional indemnity protection. You can verify agent registration at the TPB register at tpb.gov.au.

What records do I need to keep for tax purposes in Australia?

Most tax records must be kept for five years from the date of lodgement or the date the transaction occurred, whichever is later. Records must be in English or convertible to English and must be sufficient to explain the income and deductions in your return. The ATO can request records at any time during the retention period.

When do I need a registered tax agent in Australia?

Consider a registered tax agent when your affairs involve multiple income sources, business activity, investment properties, capital gains, or overseas income. Agents extend your lodgement deadline, provide safe harbour protection, and take professional responsibility for the advice given. Verify registration at tpb.gov.au.

How does the ATO calculate penalties for compliance failures?

The failure to lodge penalty is based on penalty units ($313 per unit from 1 July 2023), accruing per 28-day period for late returns and BAS lodgements. Incorrect information penalties range from 25% to 75% of the tax shortfall depending on whether the behaviour was careless, reckless, or intentional. Proactive disclosure before an audit begins typically results in significantly reduced penalties.

What is the difference between tax avoidance and tax minimisation?

Tax minimisation is the legal arrangement of your affairs to reduce tax — claiming all eligible deductions, using appropriate structures, and timing income and expenses. Tax avoidance involves arrangements that technically comply with the law but achieve outcomes parliament did not intend. The ATO can apply Part IVA anti-avoidance rules to cancel benefits from avoidance arrangements.