A company is a type of business structure. When you set up a company, you create a legal entity that’s separate from you.
A company has different legal, financial and record keeping responsibilities compared to other business structures, so it’s important you know what’s involved.
Choose a company name
When you register a company you can choose a name for the company, although it is not compulsory. You can use either:
- a name you've chosen for your new company
- a name that you've already reserved with the Australian Securities & Investments Commission (ASIC), or
- your Australian Company Number (ACN) once it has been issued.
If you decide to use a company name, it must show the legal status of the company. For example 'My Business Pty Ltd'.
You can only choose a company name not already registered to another company or as a business name.
Register your company
You can register your company and other key business registrations through the Business Registration Service. Before you register, make sure you:
- choose a company name
- decide whether your company will be proprietary or public
- understand your legal obligations
A company has directors who manage the company. Directors are obliged to adhere to the Corporations Act. These responsibilities and obligations may differ from your responsibilities as a sole trader.
It’s important that you understand your legal obligations as a company director. Learn about your company and the law on the ASIC website for details.
If you are a director of a company, registered foreign company, or Aboriginal and Torres Strait Islander corporation you need to apply for a director identification number (director ID).
You can only choose a company name not already registered to another company or as a business name. Special approval is also required to use certain words in your company name. Check if your proposed company name is available on ASIC’s check name availability search.