On this page
- Introduction
- Which incorporated legal structure should you choose?
- Director identification number requirements
- Operating interstate as a registered Australian body
- Incorporated association or a company limited by guarantee?
- Fundraising trusts and grant making foundations
Introduction
If your group has decided to incorporate, you will need to choose the incorporated legal structure that best suits your organisation’s aims, activities, size, location and future plans.
Choosing the right incorporated structure is an important legal decision. It will determine:
- where and how your organisation can operate, including whether it can operate only in one state or territory or across Australia
- who regulates your organisation
- the costs of setting up and running your organisation
- the reporting obligations your organisation must meet
- the governance and compliance obligations that apply to board or committee members, including whether they need director identification (director ID) numbers
Because this decision can have significant legal and practical consequences, your group may want to seek legal advice before choosing a structure.
Our resources outline the main incorporated legal structure options available to not-for-profit community organisations and explain the key features of each structure.
More information
If you are setting up a social enterprise, go to our resources on social enterprises.
Which incorporated legal structure should you choose?
Our fact sheets for each state and territory provide an overview of the main incorporated structures that may be suitable for not-for-profit community organisations. These include:
- incorporated associations
- companies limited by guarantee
- Indigenous corporations, and
- co-operatives
The right structure will depend on your organisation’s circumstances. For example, a small local group may choose a different structure from an organisation that plans to operate nationally, employ staff, seek large grants or register as a charity.
Select the state or territory where your organisation will be based and download the relevant fact sheet:
Once you have decided on which legal structure best suits your organisation, go to our resources on how to set up your organisation.
Caution
These are not the only structures available for not-for-profit organisations. For example, there are also charitable trusts, trade unions and companies limited by shares (although usually used for for-profit businesses). These fact sheets don’t cover these structures, but for more information on charitable trusts, see our fact sheet on fundraising foundations and charitable trusts.
Also see the ACNC's webpage Proprietary limited companies, which sets out why the proprietary limited (Pty Ltd) company is generally not suitable for charities.
Director identification number requirements
A director identification (director ID) number is a unique number given to a person who is a director or intends to become a director of certain organisations. A person keeps the same director ID for life and only needs one director ID, even if they are involved in more than one organisation.
Director IDs help prevent the use of false or fraudulent director identities and help trace a person’s relationship with companies and other registered bodies over time.
A person must have a director ID if they are a director of:
- an Australian company, including a company limited by guarantee
- a registered Australian body
- a registered foreign company, or
- an Aboriginal and Torres Strait Islander corporation
This means director ID requirements may be relevant when choosing a legal structure. For example:
- directors of companies limited by guarantee must have director IDs
- directors of registered Australian bodies must have director IDs
- committee members of an incorporated association will not usually need director IDs, unless the association becomes a registered Australian body or another director ID requirement applies
Changes from 1 July 2027
New laws will change how director IDs are reported to ASIC from 1 July 2027. Under the Treasury Laws Amendment (Business Registries Stabilisation and Uplift) Act 2026 (Cth), director IDs will become part of ASIC's ordinary registration and reporting processes.
From 1 July 2027:
- companies will generally be required to provide directors' director IDs to ASIC as part of registration and ongoing reporting processes
- directors will generally need to provide their director ID to the company within seven days after appointment if the company does not already have it
- companies and registered Australian bodies will need to include director ID information when notifying ASIC about director appointments and certain changes to directors' details
- ASIC will progressively incorporate director ID information into its business registers and reporting framework
For organisations considering a company limited by guarantee or registration as a registered Australian body, these reforms will add further governance and reporting obligations. Boards should ensure that new directors obtain a director ID promptly and that the organisation has processes to collect and maintain director ID information.
These changes do not create the requirement for directors to obtain a director ID. Rather, they expand the circumstances in which companies and registered Australian bodies must provide director ID information to ASIC.
Note - registered charities
The position is different for some organisations that are registered charities.
From 1 July 2027, companies and registered Australian bodies that are also ACNC-registered charities will generally be exempt from the new ongoing ASIC requirements to report director IDs.
However, from 1 July 2027, charities seeking to register with ASIC as a company limited by guarantee or a registered Australian body must provide their directors' director IDs when lodging the application. After registration, they will generally be exempt from the ongoing ASIC director ID reporting requirements that apply to non-charitable companies and registered Australian bodies.
Importantly, these changes do not remove the requirement for individual directors to obtain and hold a director ID. Directors of companies limited by guarantee, registered Australian bodies, registered foreign companies and Aboriginal and Torres Strait Islander corporations must still have their own director ID where required, including where the organisation is a registered charity.
When considering a company limited by guarantee or registered Australian body structure, charities should therefore distinguish between:
- the obligation on individual directors to obtain and maintain a director ID, and
- the organisation's obligation to report director IDs to ASIC
While the new ongoing ASIC reporting requirements will generally not apply to ACNC-registered charities, director ID requirements for individual directors remain in place.
More information
See ASIC’s webpage Director identification numbers (director IDs).
Operating interstate as a registered Australian body
As discussed above, directors of registered Australian bodies must have director IDs. Associations considering interstate operations should consider both director ID obligations and ASIC reporting requirements.
An incorporated association is usually registered under the law of one state or territory. If the association wants to operate outside that state or territory, it should consider whether it needs to register with ASIC as a registered Australian body.
A registered Australian body is not a separate legal structure. It is an ASIC registration that allows certain bodies, including incorporated associations, to operate across Australia. ASIC gives registered Australian bodies an Australian Registered Body Number, known as an ARBN.
For some incorporated associations, registering as a registered Australian body may be an alternative to changing to a company limited by guarantee. However, registered Australian bodies have additional ASIC obligations. For example, they must notify ASIC of certain changes, including changes to their name, address, constitution, directors or equivalent office holders, and if they stop trading.
If your incorporated association wants to operate interstate, it is important to consider:
- whether becoming a registered Australian body is the most suitable option
- whether changing to a company limited by guarantee would be more suitable
- the ASIC reporting obligations that will apply
- whether the organisation is, or plans to become, a registered charity
- whether board or committee members need director identification numbers (director IDs)
This issue is particularly relevant for incorporated associations that want to retain their existing state or territory structure while expanding their activities nationally.
Incorporated association or a company limited by guarantee?
For many not-for-profit organisations, choosing an incorporated structure often comes down to a choice between an incorporated association and a company limited by guarantee.
Our guides explain the differences between these two structures, including the benefits and limitations of each. They set out how the following factors can influence the choice of structure:
- where the group will operate or carry out activities
- whether the organisation will seek charitable tax concessions or register as a charity
- whether the organisation can meet set-up and ongoing fees
- whether the organisation may need to register as a registered Australian body to operate interstate
- whether directors or committee members need director identification numbers
- whether the organisation will be able to meet annual reporting, audit and review requirements
More information
Before reading the guides, it's important to think about whether your group will be (or will seek to be) a registered charity.
Select the state or territory where your organisation will be based and download the relevant guide:
More information
Once you have decided on which incorporated legal structure, go to our resources on setting up an incorporated legal structure.
Fundraising trusts and grant making foundations
If you are interested in setting up a fundraising trust entity or grant-making foundation, our fact sheet may help you decide whether this approach is right for your organisation.
It's important to note that a trust or a foundation is not the same as a not-for-profit organisation.
Our fact sheet covers:
- what a foundation is
- alternatives to setting up a foundation
- where to find an existing foundation
For organisations interested in setting up a private ancillary fund, the Australian Tax Office (ATO) provides a model Private Ancillary Fund trust deed. To access the model trust deed visit the ATO website.
Getting Started Tool: A free online tool
Need help making key legal decisions? Our self-help tool will ask you a series of questions about your new organisation - in plain and simple English - and will help determine the best way forward.
The content on this webpage was last updated in September 2025 and is not legal advice. See full disclaimer and copyright notice.