Australia's cheapest path to a fully registered business is genuinely free: a sole trader operating under their own name needs only an ABN, no fee at all. Forming a Pty Ltd company costs more, and that cost is rising again this year. Here's what it takes to start a business in Australia in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Sole Trader. The simplest and cheapest structure. You operate as an individual and are personally liable for all business debts, best suited to freelancers and small service businesses testing an idea before scaling.
- Pty Ltd (Proprietary Limited Company). A separate legal entity that limits personal liability, the standard choice for businesses with growth ambitions, multiple owners, or plans to raise capital. Requires at least one director who's an Australian resident.
Foreign nationals can register a business in Australia either by incorporating a Pty Ltd (which still needs that resident director) or registering a branch of their existing foreign company, though a branch generally costs more overall once you factor in a local agent and ongoing compliance.
2. Register your business
An ABN (Australian Business Number) is free and typically your first step regardless of structure. If you trade under a name other than your own legal name, a business name registration costs AUD $44 to 47 for one year or roughly $102 to 108 for three years (2026 rates). Registering a Pty Ltd with ASIC costs $611 until 30 June 2026, rising to $636 from 1 July 2026, and typically completes in 1 to 3 business days; you'll also need a registered office address and either a company constitution or reliance on the Replaceable Rules under the Corporations Act 2001. A foreign company branch registration costs the same $636 ASIC fee plus professional service fees typically running $3,500 to 5,000, with ongoing costs for a local agent (from $1,900 a year) and registered office (from $500 a year).
3. Check licenses and permits
Australia doesn't issue a single national business license. What you need depends on your industry and state; check with your state small business office and local council for anything beyond standard ABN/ASIC registration.
4. Understand Australian taxes
Pty Ltd companies pay 25% corporate tax for base rate entities with turnover under $50 million, and 30% for larger companies. Sole traders pay individual income tax on business profits at their personal marginal rate. GST registration is mandatory once your annual turnover reaches or exceeds $75,000 (registration itself is free), and you'll lodge a Business Activity Statement (BAS) monthly or quarterly from there. If you hire staff, you'll also need PAYG Withholding, and possibly state-based Payroll Tax above certain wage thresholds and Fringe Benefits Tax on non-cash perks.
5. Stay compliant
Pty Ltd companies pay an annual ASIC review fee, $342 from 1 July 2026 (up from $310 previously), on top of ongoing accounting and BAS obligations. Sole traders have no equivalent ASIC fee at all, just their regular income tax and GST filings, a meaningful ongoing cost difference between the two structures worth factoring into your decision, not just the upfront registration cost.
Australia business costs at a glance
| Item | Cost |
|---|---|
| ABN registration | Free |
| Business name (if not trading under own name) | $44 to 47/year |
| Pty Ltd registration (ASIC, from 1 July 2026) | $636 |
| ASIC annual review fee (from 1 July 2026) | $342/year |
| Corporate tax (base rate entities, under $50M turnover) | 25% |
| Corporate tax, standard | 30% |
| GST, standard rate | 10% |
| GST registration threshold | $75,000 turnover |
Frequently asked questions
How much does it cost to register as a sole trader in Australia?
Free, an ABN alone is genuinely all you need if trading under your own name.
Does Australia require a resident director for a Pty Ltd?
Yes, at least one director must be an Australian resident, a real point of friction for foreign founders compared to some other countries.
What's the corporate tax rate in Australia?
25% for base rate entities with turnover under $50 million, 30% for larger companies.
When do I need to register for GST in Australia?
Once annual turnover reaches or exceeds $75,000. Registration itself is free.
How much does it cost to register a Pty Ltd in Australia?
$636 from 1 July 2026, up from $611, plus an annual ASIC review fee of $342.
Fees and rates above come from ASIC and the Australian Taxation Office (ATO) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Australia-qualified accountant or lawyer about your specific situation.