This overview details the typical costs incurred when setting up and maintaining a standard Proprietary Limited Company (Pty Ltd) in Australia, based strictly on the most recent available data from official government and industry sources for 2025. The focus is on standard requirements and annual obligations for business establishment, allowing for clear, data-driven comparisons and planning.
Company Formation Costs in Australia (2025)
Establishing a Proprietary Limited Company (Pty Ltd) in Australia requires payment of several statutory fees, as well as optional but common service costs. The total average initial outlay is AUD $1,050, which includes all standard government and legal expenses.
| Cost Component | Amount (AUD) | Amount (USD) (1 AUD ≈ 0.68 USD) |
|---|---|---|
| ASIC company registration fee (online, proprietary company) | $576 | $392 |
| Average lawyer/accountant setup fees (including constitution, documents, advice) |
$450 | $306 |
| Minimum capital requirement | $2 | $1.36 |
| Miscellaneous (e.g., name reservation if required) | $22 | $15 |
| Total Estimated Creation Cost | $1,050 | $714 |
The ASIC (Australian Securities and Investments Commission) fee represents the largest expense for registration. Professional legal and accounting support, while technically optional for very simple businesses, is commonly recommended and therefore included here. Minimum capital is negligible but must be listed for completeness.
Annual Maintenance Costs for a Pty Ltd Company
Annual ongoing costs range between AUD $310 (minimum government fee only) and approximately AUD $2,500 (if all services are externalized and add-ons are included). This covers government fees and basic professional support for compliance.
| Ongoing Cost Category | Annual Amount (AUD) | Annual Amount (USD) |
|---|---|---|
| ASIC annual review fee (proprietary company) | $310 | $211 |
| Registered office address (service provider, optional) | $300 | $204 |
| Basic annual accounting and tax filing (small company, external accountant) |
$1,200 | $816 |
| Bookkeeping services (optional, small company) | $690 | $469 |
| Total (approx. max with all options) | $2,500 | $1,700 |
| Total (absolute statutory minimum) | $310 | $211 |
The minimum mandatory cost is the ASIC annual review fee of AUD $310. Most small companies will also bear accounting costs for statutory compliance; this is factored above as a typical outlay, but can vary substantially depending on complexity and service provider choice. Optional registered office and bookkeeping services are included for a more complete scenario but are not compulsory.
Breakdown and Practical Insights
- Government filing and review fees are non-negotiable and recur annually, irrespective of company turnover.
- Professional services (legal, accounting, and office address) are often bundled or discounted by service providers, but represent a predictable annual outlay.
- Bookkeeping costs are optional and depend on transaction volume and whether tasks are performed in-house or outsourced.
- The minimum capital requirement is largely symbolic in Australia, with just AUD $2 required to issue the initial shares.
Pro Tips for Managing Company Formation and Maintenance Costs in Australia
- Consider handling ASIC registration directly online to avoid unnecessary agent fees, unless your business structure or constitution is complex.
- If you have a physical presence, use your own office address to save on registered office service fees—these are only mandatory if you lack a local address.
- Bundling accounting and annual company secretarial services often secures better pricing from professional service providers than purchasing à la carte each year.
- Keep company transactions streamlined, especially in the first year, to minimize the cost and complexity of bookkeeping and tax lodgment.
- Verify all payment deadlines for ASIC filings to avoid late fees, as penalties can escalate quickly.
Additional Resources and Official References
- ASIC (Australian Securities and Investments Commission) Main Portal
- Australian Government Business Portal
- CPA Australia Main Website
Setting up a company in Australia comes with transparent, relatively moderate initial costs compared to many jurisdictions, with annual maintenance driven largely by the scope of external professional services you require. The statutory fees—while non-negligible—are predictable, and optional support can be scaled according to your business’s administrative preferences. As always, ensuring efficient compliance and early planning will shield you from unexpected outlays or penalties down the line.