- Starting a company in Australia is most often shown as a simple process with straightforward rules, but even for just registering, the anticipated cost goes far beyond the actual amount. All the founders keep their eyes on the upfront price, but they tend to forget that there are several hidden layers of fees that need to be taken care of before diving into the process of registration.
- Australia, with its most financially stable economy, tops the priority list of business entrepreneurs to register company in Australia. The cost to register a company in Australia can be easily accessed by visiting the official sites of the Australian Securities and Investments Commission (ASIC). When these costs are planned in a structured way, it becomes easy to stay away from financial surprises.
- Here is the exact breakdown of all the costs, including official fees, ASIC charges, and other hidden costs that will be levied on the company to get it registered.
Fees for getting a company registered in Australia
- For registering a company in Australia, a government filing fees needs to be deposited prior to registration. This fee is the mandatory fee that is required to be drawn to ASIC.
- The basic payment of $611 is required to be made if Proprietary Limited Company (Pty Ltd.) or Public Company with limited shares needs to be registered. This will be paid only once.
- If you need to get the public company with a guarantee registered, the payment of $503 is to be made as per the Corporation (FEES) Regulation, 2001.
- For registering the name of the company, additional costs are being levied, for 1 year $45 needs to be paid to ASIC and for 3 years $ 104 needs to be paid.
- Annual company review fees are also being levied by ASIC, where Pty Ltd. Have to pay $ 329 and the public companies are required to make the payment of about $1528 to ASIC.
- When all the costs are combines and rough estimate is put up than registering a company in Australia can cost about AUD $911 to $2,110, depending upon the time of company that is going to be incorporated.
- For the ease of registering the company, many entrepreneurs rely on consulting experts who will assist them with all legal fee structures and timely payments to avoid late fees and penalties.
ASIC charges for registration of company in Australia
- The Australian Securities and Investments Commission (ASIC) remains the sole authority to guide the fee structure for the registration of the company in Australia.
- It is guided by the provisions of the Corporation (Fees) Regulations, 2001; the Corporations (Review Fees) Regulations 2003, the National Consumer Credit Protection (Fees) Regulations 2010, the Business Names Registration (Fees) Regulations 2022; which provides detailed rules regarding the fees of collection and the amendments to the fees of structure.
- Getting to know the know-how of each and every fee that is going to be levied by ASIC is important, as these fees are not one-time payments; instead, they go beyond the registration process and need to be paid for periodic revisions. All of these fees are not subject to GST.
Company registration fees
- For reserving the name of the company, $62 needs to be paid, and for extending the reservation of the company’s name, an additional $62 needs to be given to ASIC.
- For applying to the minister for getting the consent to use a company name, $1,521 needs to be rendered, and for omitting the word “Ltd.” from the company, the charges by ASIC are $503.
- For an Australian company, having a share capital, $611 are the charges, whereas without share capital, $503 needs to be paid.
Annual review fees
- For applying to change the annual review date by a company, $50 needs to be rendered to ASIC, and there is a $0 fee for changing the company’s details in the account to the company’s statement.
- For the annual review of a public company, $1,528 needs to be paid, and for a Pty. Ltd. Company, which is incorporated except for the special purposes, $329 needs to be given to ASIC.
- The annual review fees for a special purpose Pty. Ltd. are $67, and other than that, $62 needs to be drawn to ASIC.
- For the upfront payment of 10 years’ annual review, Pty. Ltd. is required to disburse $2,438, and the public company needs to pay $10,000.
Late fees
- The late fees for the annual review, which is given after one month of the due date, are $98, and if the due date is exceeded even by one month, the fees will be $411.
- In case of lodgment fees, if the lodgment is filed after one month of due date, then the fees will be $98, and if the due date is exceeded even by one month, the fees will be $411.
- The same amounts of $98 and $411 will be applied for the late fees of review respectively.
Search fees
ASIC may require a $3 service fee for conducting the searches. The search can be conducted for companies and organizations. Business names, people, documents, and professional registers.
Hidden costs in registration
- The government and the ASIC has profoundly declared all the costs for preparation of budget. But, there are few other significant costs that can be overlooked but they add to significant amount of budget.
- For incorporation and registration aid of experts is required, for that the cost can be about $500 to $2,00 depending on the kind of services acquired.
- The companies need to acquire a registered physical address and for that the cost can be about $300 to $500 per year.
- The company, after the incorporation, also needs to maintain the account book, financial statements, and tax filings; for that, the cost to the company will be about $1 200 to $3,500 per year.
Conclusion
- The business entrepreneurs who are willing to get their business global with the help of the Australian market need to be well-informed about all the costs and fees levied by ASIC in incorporation of a company. Having the know-it-all approach will help you to make the budget for the new company accurately.
- When professional expertise is engaged in this process, the procedure becomes streamlined and can save you from making costly mistakes and make the registration journey swift.