Registering a business in Australia is straightforward once you understand the sequence. The process involves choosing a structure, obtaining an ABN, registering any business name, and setting up a compliant business address. For most small businesses, the entire process can be completed online within a day.
This guide covers every step from first decision to fully registered business including costs, timelines, and the address requirements that catch many new business owners off guard.
Table of Contents
- Step 1: Choose your business structure
- Step 2: Register for an ABN
- Step 3: Register a business name (if needed)
- Step 4: Register a company with ASIC (if needed)
- Step 5: Set up your registered business address
- Step 6: Register for tax obligations
- Step 7: Open a business bank account
- Step 8: Obtain licences and permits
- Costs summary
- Frequently asked questions
Step 1: Choose Your Business Structure
Your business structure determines your legal obligations, tax treatment, liability exposure, and ongoing compliance requirements.
The four main structures in Australia are:
Sole Trader
You and the business are legally the same entity.
Simple and inexpensive to set up you only need an ABN.
All business income is taxed at your personal marginal rate.
You are personally liable for all business debts.
Partnership
Two or more people carry on a business together.
Each partner shares profits, losses, and liability.
Requires an ABN and a partnership agreement.
Income is distributed to partners and taxed at their individual rates.
Company (Pty Ltd)
A separate legal entity registered with ASIC.
Provides limited liability protection your personal assets are generally protected from business debts.
Taxed at the company rate (25% for base rate entities).
Requires:
- An ACN
- An ABN
- At least one Australian-resident director
- A registered office address
Trust
A trustee (individual or company) holds assets and conducts business for the benefit of beneficiaries.
Flexible for income distribution and asset protection but more complex to establish and administer.
Which Structure Should You Choose?
For most people starting out, the choice is between sole trader and company:
Choose sole trader if:
- You are testing a business idea
- Your income will be modest
- You have minimal liability risk
- You want to keep costs and administration low
Choose company if:
- You want personal asset protection
- You expect income above $80,000–$100,000 where company tax rates become more efficient
- You plan to take on employees or significant contracts
- You want a more formal structure for growth
Many businesses start as sole traders and incorporate later as revenue grows.
Step 2: Register for an ABN
An Australian Business Number (ABN) is an 11-digit identifier required by all businesses operating in Australia.
It is free to obtain and is used for:
- Invoicing
- GST registration
- Government dealings
- Tax compliance
How to Apply
Register through the Australian Business Register at abr.business.gov.au, or use the Business Registration Service at register.business.gov.au, which allows you to bundle:
- ABN registration
- ACN registration
- GST registration
- Business name registration
into a single application.
What You Need
- Your Tax File Number (TFN)
- Your full legal name and date of birth
- Your residential address
- A description of your primary business activity
- Your business start date (can be backdated up to 6 months or future-dated)
Processing Time
Most applications receive instant approval.
If the ABR requires additional verification, processing can take up to 28 days.
Cost
Free
Step 3: Register a Business Name (If Needed)
You must register a business name with ASIC if you trade under any name other than:
- Your own legal name (for a sole trader)
- Your company's legal name (for a company)
For example:
If your name is Sarah Chen and you want to trade as "Bright Digital Marketing", you must register Bright Digital Marketing as a business name.
How to Register
Register through ASIC Connect at connect.asic.gov.au.
You will need your ABN before you can register a business name.
Check Availability First
Use ASIC's business name availability search to ensure the name is not already registered.
Also check the IP Australia trademark register to avoid infringing an existing trademark.
Cost (As of 2025)
- 1-year registration: $42
- 3-year registration: $98
Important
A business name registration does not give you ownership of the name.
It only confirms no other business is currently registered under that name.
For brand protection, register a trademark through IP Australia.
Step 4: Register a Company with ASIC (If Needed)
If you have chosen to operate as a company (Pty Ltd), you must register with ASIC.
This creates a new legal entity and assigns an Australian Company Number (ACN).
Requirements for Company Registration
- A unique company name (checked via ASIC's name availability tool)
- At least one director who ordinarily resides in Australia
- Each director must have a Director Identification Number (DIN) obtained via the Australian Business Registry Services (ABRS)
- A registered office address — a real physical street address in Australia where legal documents can be served
- At least one shareholder
- Details of share structure (number and class of shares)
How to Register
Use:
- Business Registration Service (register.business.gov.au), or
- ASIC Connect
The Business Registration Service allows you to register your company and apply for an ABN simultaneously.
Cost (As of 2025)
Company registration: $576
Processing Time
Most applications are approved within minutes when submitted through the Business Registration Service.
Paper applications take longer.
Step 5: Set Up Your Registered Business Address
Your registered business address is one of the most important and most overlooked steps in setting up a business in Australia.
For Companies
ASIC requires a registered office address a real physical street address (not a PO box) in Australia where:
- Legal documents can be served on the company
- The premises are accessible during business hours (minimum 3 hours between 9am and 5pm on business days)
- The occupier has given written consent
For Sole Traders and Business Name Registrations
ASIC requires:
- A service address
- A principal place of business
These do not have the same strict accessibility requirements as a company registered office, but must be physical street addresses.
Using a Virtual Address
A virtual address from Space Penguin satisfies both:
- The company registered office requirement
- The sole trader business address requirement
It is a real street address at staffed commercial premises in Sydney or Melbourne, with written occupier consent provided as standard.
Using a virtual address means your home address never appears on the ASIC public register, protecting your privacy from day one.
This is particularly valuable because the ASIC register is publicly searchable to clients, competitors, and anyone else can look up your business address.
Space Penguin virtual addresses start from $20/month.
Step 6: Register for Tax Obligations
Once your ABN and business structure are in place, register for relevant taxes with the ATO.
GST (Goods and Services Tax)
Mandatory if your annual turnover is:
- $75,000 or more (businesses)
- $150,000 or more (non-profit organisations)
Register through:
- The ATO Business Portal
- The Business Registration Service
Once registered, you charge 10% GST on taxable supplies and lodge a Business Activity Statement (BAS) quarterly or monthly.
PAYG Withholding
Required if:
- You have employees
- Contractors do not provide an ABN
Register with the ATO to withhold tax from payments and remit it to the ATO.
PAYG Instalments
Once your business is profitable, the ATO may require you to pay income tax in instalments throughout the year rather than in a lump sum at tax time.
Fringe Benefits Tax (FBT)
Required if you provide fringe benefits such as:
- Car use
- Entertainment
- Other employee benefits
Superannuation
If you have employees, you must pay the Superannuation Guarantee:
- 11.5% for 2024–25
- 12% from 1 July 2025
into their nominated superannuation fund.
Company directors who receive a salary must also receive super contributions.
Step 7: Open a Business Bank Account
A separate business bank account is not legally required for sole traders but is strongly recommended for all business structures.
It is mandatory for companies, which are required to have bank accounts in the company name.
Major Business Banking Providers
- Commonwealth Bank
- ANZ
- NAB
- Westpac
- Macquarie
- Bankwest
Neobanks including:
- Zeller
- Airwallex
also offer competitive business account options.
What You Will Need
- Your ABN
- Your business address (must be a physical street address banks do not accept PO boxes)
- For companies: your ACN and certificate of registration
- Proof of identity for all directors or account signatories
A virtual address from Space Penguin satisfies the bank's business address requirement.
Step 8: Obtain Licences and Permits
Depending on your industry and location, you may require specific licences or permits to operate legally.
Requirements vary by:
Industry
Food businesses, trades, financial services, health practitioners, childcare, and many other sectors have mandatory licensing requirements.
State or Territory
Each state has its own licensing requirements.
A tradesperson licensed in NSW may need separate registration in Victoria.
Local Council
Many businesses operating from or near residential premises require council development approval.
Use the Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au to identify the licences and permits relevant to your business type and location.
Costs Summary
| Registration | Cost | Who Needs It |
|---|---|---|
| ABN | Free | All businesses |
| Business name (1 year) | $42 | Businesses trading under a name other than their own |
| Business name (3 years) | $98 | Same as above |
| Company registration | $576 | Businesses operating as Pty Ltd |
| ASIC annual review fee | ~$329/year | Companies |
| Director Identification Number | Free | All company directors |
| GST registration | Free | Businesses with turnover ≥ $75,000 |
| Virtual address (Space Penguin) | From $20/month | Businesses wanting a professional, private business address |
Frequently Asked Questions
How long does it take to register a business in Australia?
For sole traders, the entire process ABN, business name, and address setup can be completed within a single business day.
Company registration via the Business Registration Service is typically approved within minutes.
Total setup including a bank account typically takes 2–5 business days.
Can I register a business without a physical address?
You need a real physical street address not a PO box for:
- ASIC registration (companies)
- Business banking
A virtual address from Space Penguin satisfies both requirements from $20/month, without requiring you to lease physical office space.
Do I need an accountant to register a business?
No.
ABN and business name registration can be done directly online by anyone.
Company registration is also straightforward through the Business Registration Service.
However, consulting an accountant before choosing your structure is strongly recommended, as the tax and liability consequences are significant and specific to your situation.
What is the cheapest way to register a business in Australia?
Operating as a sole trader under your own legal name requires only an ABN, which is free.
Adding a business name costs:
- $42 for one year
- $98 for three years
A company costs:
- $576 to register
- Approximately $329 per year in ASIC fees
Can I use my home address for my business registration?
Yes, but it becomes part of the public ASIC register searchable by anyone.
Using a virtual address from Space Penguin keeps your home address private from day one.
Ready to set up your registered business address? Space Penguin provides ASIC-compliant virtual addresses in Sydney and Melbourne from $20/month.