How to start a company in Sydney in 2026

This guide starts a company in Sydney in 2026, assuming you are a first-time founder with one or two co-founders and no prior business. It covers structure, name, tax registration and the recurring obligations that catch people out. It is written for Australia, with NSW specifics noted where they differ.

Step 1: pick the structure before anything else

The most consequential decision is the legal structure, and it is easy to postpone. In practice almost all Sydney founders end up in one of three places.

A sole trader is the default. It is simple, cheap and fast, but there is no separation between personal and business assets, and it becomes untenable the moment an investor or a serious contract is involved.

A registered company (Pty Ltd) owned by the founders is the standard vehicle for anything expecting to raise capital. It requires an ABN, a Tax File Number, a registered office address, and a company register. Registration through the national business registration system is free to complete and typically processed within two business days.

A discretionary trust is common when a founder wants to hold the business asset in a family structure, particularly in professional practices. It adds a second layer of administration and a trustee who carries obligations.

Decide before you sign a lease or a contractor agreement. Changing structure after revenue starts means unwinding contracts.

Step 2: register your ABN and business name

Register your ABN through the Australian Business Register, which connects to the tax office and lets you add GST and PAYG registrations in the same session. It is free, takes about ten minutes, and the confirmation is issued immediately.

A registered business name is separate. It gives you an identifier for invoicing but does not protect the name. If the name matters, a trademark application is the mechanism, and it is worth registering the name as a domain and a social handle on the same day.

You will need a registered address. Some founders use a registered agent service; others use a commercial address or, where permitted, their home address.

Step 3: get the tax settings right

Register for GST if you expect turnover of $75,000 or more in any 12-month period, or if you plan to, because the threshold is not hard to cross in the first year. GST registration allows you to claim GST on business purchases, which matters if you buy software, equipment, or professional services.

Set up a separate bank account and a business credit card from day one. Commingling personal and business spending creates problems at tax time and, later, at fundraising diligence.

Pay As You Go withholding applies when you pay people. Personal services withholding, commonly called a TPS, applies to many individual contractors and is 1.5 percent for most professional arrangements. Some founders discover this on their first invoice and it becomes a cash-flow problem. Budget for it.

Step 4: employment and superannuation

Once you hire, superannuation becomes compulsory. The contribution rate is 12 percent of ordinary time earnings, payable monthly, with a quarterly reporting threshold of $50,000 in ordinary time earnings across your group.

You also need a default fund. Funds such as the industry schemes and retail schemes accept any employer; some industry funds charge higher fees. Employee choice for a superannuation fund is limited because of the award structure, which is why the default matters more than founders expect.

Workers compensation insurance is compulsory once you employ staff, administered by one of the licensed insurers. Premiums are set by payroll size and industry classification. Add this to the list of things that cost more than quoted.

Step 5: the filings founders miss

A first-year calendar in Sydney is small. Register the business. Lodge the annual ASIC statement and fee. File the tax return, in most cases within three months of your financial year end if a tax agent is preparing it. Set aside four payments of estimated tax as income starts. Keep records for five years.

Two more items catch people. If you have a rental property or run premises for your business, check the council's rates and waste charges. And if you hire contractors, check whether they are genuinely contractors, because a determination can make their PAYG withholding your responsibility.

Where to get help in Sydney

Free and low-cost help exists. The national business registration service is free. State and federal startup programmes run office hours in Sydney with advisers who review structure questions without charge. Accountants are the first call for anything involving structure or tax; lawyers are the first call for anything involving equity, cap tables or a commercial lease.

Register before you trade, not after your first paying client.

For more Sydney business guides, see Business.