Setting up a company in Australia is an exciting exercise, and it’s important to understand the associated costs to ensure you budget effectively. This article provides a detailed breakdown of the costs involved in setting up a business in Australia.
Initial Registration Costs
Business Name Registration
Registering your business name with the Australian Securities and Investments Commission (ASIC) typically costs:
- AUD 42 for one year or
- AUD 98 for three years.
Company Registration
The cost to register a company with ASIC directly is approximately AUD 576. This fee applies to a proprietary company, which is the most common type of company structure for small to medium-sized businesses.
Many business owners and even accountants prefer to register their company with a third party provider that offer a much more user-friendly interface such as Swift Docs. These providers charge a small fee on top of ASIC’s fee. Swift Docs’ company registration cost is only $34 (or $610 inclusive of $576 ASIC fee). We also provide you a complimentary company constitution as part of the service. We’ll discuss more on this below.
Legal and Professional Fees
Legal Fees
Engaging a solicitor to help with legal documentation, including your company constitution and other regulatory requirements, can range from AUD 500 to AUD 3,000, depending on the complexity of your business structure. Swift Docs provide a templated company constitution as part of its company setup service. This is inclusive in the $610.
Accounting Fees
Hiring an accountant for initial setup advice and ongoing bookkeeping services is essential. Initial consultation fees can be around AUD 200 to AUD 500, with ongoing services ranging from AUD 100 to AUD 450 per hour.
Ongoing Regulatory Costs
Annual Review Fee
ASIC requires companies to pay an annual review fee, which is around AUD 310 for a proprietary company.
Tax and Superannuation
Ensuring compliance with tax obligations and superannuation contributions for employees involves ongoing costs. Budget for quarterly Business Activity Statements (BAS) and annual tax returns prepared by an accountant.
Conclusion
Understanding the various costs associated with setting up a company in Australia is essential for effective financial planning. By accounting for registration fees, legal and professional expenses, and ongoing regulatory costs, you can ensure your business is well-prepared for a successful launch. In addition to providing company registration service, Swift Docs also has a network of professionals such as accountants, bookkeepers and lawyers if you need a referral to assist you with setting up your company.