Thinking about expanding your business to Australia? Or maybe you’re an ambitious UK entrepreneur eyeing the Australian market as your launchpad? Either way, one of the first (and most important) questions you’ll have is:
how much does it cost to set up a company in Australia?
In this detailed guide, we’ll walk you through the costs involved, the steps you need to take, and the ongoing obligations to budget for. By the end, you’ll have a crystal-clear picture of the financial commitment required — and the confidence to move forward with your Australian venture.
Why UK Entrepreneurs Are Choosing Australia
Before diving into numbers, it’s worth understanding why Australia is such an attractive destination for UK businesses:
- Strong trade relationship: The UK and Australia maintain robust economic connections, further enhanced by the UK-Australia Free Trade Agreement.
- English-speaking market: No language barriers make business operations smoother.
- Stable economy: Australia has consistently ranked as one of the most stable economies in the world.
- Favourable business climate: Straightforward company registration process compared to many other countries.
But opportunities always come with costs. Let’s explore them in detail.
Step 1: Choosing the Right Business Structure
The cost of setting up a company in Australia largely depends on your chosen structure. The most common types are:
- Sole Trader – Cheapest and simplest, but not ideal for UK entrepreneurs looking to expand formally.
- Partnership – Shared business structure, but liability can be an issue.
- Company (Pty Ltd) – The preferred business structure for most foreign investors. Provides limited liability and is recognised as a separate legal entity.
For UK entrepreneurs, setting up a Pty Ltd company is usually the best option. It’s the structure most Australian businesses use and the one that investors, suppliers, and clients trust.
Step 2: Company Registration Costs in Australia
The primary costs involved in company registration include government fees and professional assistance.
- ASIC Registration Fee
• The Australian Securities and Investments Commission (ASIC) handles all company registrations.
• Cost: The fee to register a proprietary limited (Pty Ltd) company is AUD $576 (approx. £300). - Business Name Registration
• If your company name is different from the legal entity name, you must register it.
• Cost: AUD $42 for 1 year or AUD $98 for 3 years (~£22 or £52). - Domain Name
• Securing a .com.au domain adds credibility.
• Cost: AUD $15–30 per year (~£8–£16).
Step 3: Professional and Legal Costs
While you can register a company on your own, most UK entrepreneurs prefer assistance to ensure compliance.
- Legal and Accounting Support
• Company formation packages with an accountant or solicitor: AUD $500–$1,500 (~£260–£780).
• This usually covers setting up your company constitution, ensuring director/shareholder compliance, and guiding you through tax registrations. - Registered Office and Local Agent
• If you are not based in Australia, you’ll need to provide a local registered office address.
• Cost: AUD $300–$1,000 per year (~£160–£520). - Notary & Document Certification
• Some documents may require notarisation, especially if directors are based in the UK.
• Cost: AUD $100–$500 (~£50–£260).
Step 4: Tax and Compliance Registrations
- Running a business in Australia means registering for taxes.
- Australian Business Number (ABN) – Free
- Tax File Number (TFN) – Free
- Goods and Services Tax (GST) – Required if annual turnover is AUD $75,000+
- PAYG (Pay-As-You-Go) Withholding – For hiring staff
Most of these registrations are free, but accountants may charge between AUD $200–$600 (~£100–£310) to manage the paperwork.
Step 5: Ongoing Costs of Running a Company in Australia
Setting up is just the beginning — you’ll need to budget for ongoing expenses too.
- Annual ASIC Review Fee
• AUD $310 per year (~£160). - Bookkeeping and Accounting
• Depending on business size: AUD $1,000–$5,000 annually (~£520–£2,600). - BAS (Business Activity Statement) Lodgement
• If registered for GST, you must file quarterly.
• Accountant fees: AUD $200–$400 per quarter (~£100–£210). - Company Tax
• Australia’s corporate tax rate: Ranges from 25% to 30%, based on annual turnover. - Staff Costs
• If hiring employees: Superannuation (pension contributions) at 12% of salary.
Step 6: Extra Considerations for UK Entrepreneurs
Setting up a company from the UK involves extra factors beyond Australian entrepreneurs’ costs:
- Currency Exchange & Banking
• Opening an Australian business bank account may require a personal visit.
• International bank transfers and currency conversion can add costs. - Visas & Relocation
• If you or your staff plan to move:
Business Innovation and Investment Visa – Application costs range AUD $6,000–$8,000 (~£3,100–£4,200). - Insurance
• Professional indemnity, public liability, and workers’ compensation insurance: AUD $500–$2,000 annually (~£260–£1,040). - Marketing & Branding
• To enter a new market, budget at least AUD $5,000+ (~£2,600+) for marketing, website localisation, and brand awareness.
Example Cost Breakdown: Setting Up a Small UK-Owned Pty Ltd in Australia
| Expense | Cost (AUD) | Cost (£ approx.) |
| ASIC Registration | $576 | £300 |
| Business Name | $98 (3 years) | £52 |
| Domain Name | $20 | £10 |
| Legal/Accounting Setup | $1,000 | £520 |
| Registered Office | $500 | £260 |
| Insurance | $1,000 | £520 |
| Annual ASIC Fee | $310 | £160 |
| Accounting & BAS | $2,000 | £1,040 |
| Total (Year 1) | $5,504 | £2,862 |
FAQs – Cost of Setting Up a Company in Australia
Can I register a company in Australia from the UK?
Yes, absolutely. You don’t need to be physically present in Australia, but you’ll need a local registered office and an Australian resident director (in most cases).
How long does registration take?
Online applications are usually processed within 1–2 business days.
Do I need an Australian bank account?
Yes, for trading in Australia. While you can start with UK accounts, opening an Australian one will make operations smoother.
What’s the cheapest way to start?
Technically, you could register directly with ASIC and minimise legal costs. However, for UK entrepreneurs, it’s safer to invest in professional guidance.
What’s the main difference between a branch and a subsidiary?
A branch operates as an extension of your UK company, whereas a subsidiary (Pty Ltd) is an independent Australian entity. Most UK businesses choose a subsidiary for greater credibility and limited liability protection.
Final Thoughts: Budgeting for Success in Australia
Expanding into Australia is an exciting step for UK entrepreneurs — but success requires preparation. On average, expect to budget around AUD $5,000–$7,000 (£2,600–£3,700) in your first year, excluding staff and large-scale marketing costs.
That investment gets you:
• A fully registered Pty Ltd company
• Compliance with ASIC and tax requirements
• The foundations to grow in one of the world’s most attractive markets
Next Steps for UK Entrepreneurs
- Research your market – Identify your target audience in Australia.
- Choose your business structure – Most likely a Pty Ltd.
- Work with professionals – Legal and accounting advice is worth every penny.
- Plan your finances – Set aside at least £3,000–£5,000 for setup and initial running costs.
Expanding across borders doesn’t need to be daunting. With the right planning and support, you can confidently bring your UK business into the Australian market.
Pro Tip for UK Business Owners:
Looking to set up your company in Australia? From registration through to compliance, ICS (International Commercial Services) provides step-by-step guidance. With our expertise, you’ll avoid costly mistakes and stay focused on growing your business.
