On this page
- Introduction
- What does incorporation mean?
- How to decide whether your group should incorporate
- Next steps
Introduction
Deciding whether to incorporate is an important step for many community groups.
Incorporation can provide significant benefits, including a separate legal identity and greater protection from personal liability. However, it also brings additional legal responsibilities, such as governance, reporting and record-keeping requirements.
More information
Groups that are just starting out may wish to consider being auspiced by an existing organisation.
What does incorporation mean?
Incorporation creates a legal entity that is separate from the people who form or manage the group. This means the organisation can act in its own name. For example, it can:
- enter contracts
- lease property
- employ staff
- own assets
- sue and be sued
Incorporated organisations are registered under state, territory or federal law and must comply with the requirements that apply to their legal structure. They are generally regulated by a government body, such as the Australian Securities and Investments Commission (ASIC).
Most incorporated organisations have:
- governing rules (often called a constitution)
- members, and
- a governing body, such as a board or management committee
People who serve on a board or management committee take on legal responsibilities, so it is important to understand the implications of incorporation before making a decision. Your group may wish to obtain legal advice.
How to decide whether your group should incorporate
Our fact sheet, Should your group incorporate?, provides more detailed guidance to help your group make an informed decision. It explains:
- what incorporation means
- the benefits of incorporation
- the responsibilities of incorporated groups
- factors to consider when deciding whether to incorporate
- next steps if your group decides to incorporate
- next steps if your group decides not to incorporate
Next steps
If your group decides to incorporate
The next step is to choose the incorporated legal structure that best suits your group's needs. Choosing the right structure can help your group pursue its purpose, carry out its activities effectively and manage risk.
More information
Find out which incorporated legal structure may be right for your group.
If your group decides not to incorporate
If your group remains unincorporated, it should:
- review the decision regularly, particularly when there are significant changes to its activities, funding, staffing or operations
- understand the implications of remaining unincorporated, including that the group will not be a separate legal entity and will not have the benefits of limited liability or perpetual succession
Getting Started Tool: free online tool
Need help working through these decisions? Our free self-help tool asks you a series of simple questions about your proposed organisation and provides information to help you understand your options and decide what to do next.
The content on this webpage was last updated in July 2026 and is not legal advice. See full disclaimer and copyright notice.