How Much Does It Cost to Move from Sole Trader to Company in Australia

As your business grows, it may be time to think about changing your structure. Moving from a sole trader to a company can offer better legal protection, open new tax planning opportunities and help you work with larger clients. 

But many business owners are caught off guard by the actual cost of making the switch. 

This post will help you understand the fees involved so you can plan properly and avoid any unwanted surprises. Whether you are growing fast or simply looking for more control and protection, knowing the real cost makes all the difference. 

What You Need to Budget For 

Here is a simple breakdown of the costs involved in setting up a company structure in Australia. 

ASIC Company Registration Fee, Legal & Accounting Services

This is the government fee to officially register your company. 

Approximate cost: $1,320 (GST Incl.)

This is made of $611 ASIC Registration Fee, Company Constitution documents and the tax registrations setup. This includes your Australian Company Number or ACN and is paid once when you register. 

Business Name Registration 

If you want to trade under a business name that is different from your official company name, you will need to register it. 

Approximate cost: $45 for one year or $104 for three years You can skip this if you are happy to trade using your registered company name. 

Pro tip: A properly structured company can save you money and stress later. It is worth doing it right from the start. 

Business Structure Review and Advisory Fees 

Before switching, it is wise to review your current setup. This helps you choose the right timing and avoid unexpected tax or legal problems. 

Typical range: $350+GST to $700+GST  This can help you plan for cash flow, future growth, and your obligations as a director. 

Ongoing Company Costs 

Running a company involves more responsibilities than operating as a sole trader. 

Annual ASIC review fee: from 1^st July 2025 it is $329  Ongoing bookkeeping, Financial Statements, Tax Return, BAS and other compliance: Costs may increase depending on the size and complexity of your business, reach out to our team to give you a quote. 

Final Thoughts 

Changing from a sole trader to a company can cost anywhere from $1,320 to $2,200 or more. It may feel like a big step, but it is often the right one for business owners who are scaling up, managing risk or planning for the future. 

The important thing is to weigh the cost against the benefits. The right structure can make your business more resilient and ready for growth. 

Still wondering if moving to a company structure is right for you? 

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