Most common business entity in Australia
The Proprietary Limited (Pty Ltd) is the standard choice for most small- to mid-size businesses in Australia. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. ASIC registration AU$576 (2025). Annual review fee AU$310 small proprietary.
The full menu of Australia business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Proprietary Limited (Pty Ltd) | Limited | 30% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 30% on Australia-source profits | Foreign companies entering Australia market |
| Public limited company | Limited | Same as Proprietary Limited (Pty Ltd) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Australia? Self-employed structure if simple, Proprietary Limited (Pty Ltd) if you want liability protection.
- Software / e-commerce / agency? Proprietary Limited (Pty Ltd) — standard, scalable.
- Operating an existing foreign company in Australia? Branch (simpler) or subsidiary Proprietary Limited (Pty Ltd) (more substance).
- Planning to raise venture capital? Confirm investors accept Australia entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Proprietary Limited (Pty Ltd) with minimal substance requirements.
The Proprietary Limited (Pty Ltd) in one paragraph
Proprietary Limited (Pty Ltd) is Australia's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 30%. 25% if base rate entity (≤ AU$50M revenue, ≤80% passive income), 30% otherwise.. Banking accessibility: 9/10. Privacy: 5/10 (UBO non-public). Remote formation: yes. Processing time: 1 business day.
For US comparison, see Australia vs USA. For non-resident formation specifics, see forming a Australia company as a non-resident.