What is a PTY LTD company?


An incorporated company is a distinct legal entity, regulated by the Australian Securities & Investment Commission (ASIC). A company has a separate legal existence from its owners. It has rights similar to a natural person in that it can incur debt and sue and be sued. Most companies have a PTY LTD at the end of the name, which stands for Proprietary Limited. Companies are more expensive to set up than other structures because ASIC charges a separate fee to create this legal entity. 

You can set up your company in just minutes with Honcho. Call us on 1300 550 730 to speak to one of our registration specialists.  


  • 30% flat tax rate from the first dollar-reduce to 28.5% for small business from 01/07/2015
  • Companies have distinct advantage of limited liability. The owners (shareholders) risk only what they have paid for the shares purchased. Their personal assets are not at risk if company suffers bankruptcy. Companies can be sued but not shareholders.
  • The most effective form of business for capital raising and easier access to bank credit than other types of business organisations.
  • Companies as artificial persons have continuity of existence independent of its owners so business is easier to transfer or shares to be sold to new owners.
  • Succession of the business
  • Easy to sell or buy shares



  • Establishment fees and annual fee
  • Complicated and expensive to wind-up
  • Higher compliance requirements
  • Separation of ownership and control
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