Australia Proprietary Limited Company (Pty Ltd)
Australia
Australian Proprietary Limited (Pty Ltd) is the standard private company structure, accounting for the vast majority of registered Australian companies. Incorporation is fast via ASIC online filing (typically <24 hours). The base-rate entity tax rate is 25% for companies with aggregated turnover under AUD 50M; 30% otherwise. Critically, at least one director must ordinarily reside in Australia — a hard requirement, not satisfiable through nominee services in the same way as some other jurisdictions. From November 2021, all Australian directors (including foreign directors of Australian companies) must obtain a Director Identification Number (DIN) via the ABRS — a 100-point identity verification process. Australia has no capital gains discount for company-held assets but offers a 50% discount to individual / trust holdings.
Formation Details
- Setup Time
- 1 days
- Setup Cost
- $380
- Annual Cost
- $2,200
- Corporate Tax
- 25% for base rate entities (turnover < AUD 50M); 30% for larger companies
- VAT Threshold
- $50,000
- Nominee Directors
- Not allowed
- Public Register
- Yes
- Residency Required
- At least one director must ordinarily reside in Australia. From 2021 reform, all directors must obtain a Director Identification Number (DIN).
- Banking Difficulty
- Moderate
Economic Substance Requirements
- Physical Office
- Not required
- Local Director
- Required
- Minimum Staff
- —
- Annual Local Spend
- —
At least one Australian-resident director required. Registered Australian office address required (can be registered agent). Director Identification Number (DIN) mandatory for all directors from November 2021. No minimum share capital — AUD 1 nominal share capital common.
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| ASIC annual review fee | $200 | AUD 321/yr (2024 fee). |
| Australian-resident director (nominee where applicable) | $4,000 | AUD 5,000-10,000/yr where structure requires nominee. Mandatory for fully non-resident-owned companies. |
| Registered office service | $400 | AUD 500-700/yr. |
| Accountant + ATO filings | $2,500 | AUD 3,000-6,000/yr depending on complexity. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
Australian Pty Ltd owned by US persons is CFC; Form 5471 required. The US-Australia tax treaty provides 5%/15% dividend withholding and reduced rates on interest/royalties. Australian dividends generally carry imputation credits (franking) which are not directly creditable for US persons — leading to economic double tax.
Other Jurisdictions
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