The Common Wealth Government regulates Australian business law. In the Corporations Act 2001 (Cth), the law was mainly codified. It was found that common wealth had less authority in setting up businesses in Australia, section 51 only facilitated foreign businesses and provided enough authority, the federal government created a new law for businesses. The Companies Act 2001 is the most important law in the world, it is the Common Wealth Government Act. The main focus of the law is on corporations, but also certain other law-related entities, such as partnerships and managed investments. This law is adopted by all states. The Corporation Act 2001 (Cth) is Australia's principal legislative body. It deals with the whole question of society. This law confers numerous constitutional forces and assigns other duties to the business owner. Violating their obligations can cause them trouble and serious penalties of up to $220,000. At common law and in the Corporations Act 2001, directors will also be liable to pay compensation (www.apla.com). Types of Companies in Australia Sole Trader; This is the simplest type of association. Sole proprietorships do not require certain formalities, a single person can own it and employ other people in the organization. The assets and liabilities of the business do not have a separate existence from that of the owner. In the case of a sole trader vessel, the owner does not pay any corporate tax, but rather personal income tax. In the case of a sole proprietorship, the owner controls the entire business and does not share the profits with anyone. the only legal requirement for this type of business is to obtain an Australian Business Number (ABN) and, in some cases, register for Materials and Services Tax (GST). If the owner does not wish to carry on the business under their own name, the individual will do so only. be required to register the name in a valid (state or territory) trading law. The business owner is responsible for the business's losses. If the business runs into difficulty, the owner's personal assets will be sold to pay off all loans. Nor is there any legal procedure for another to enter into the possessions. The death of the owner can end the business (Woodward et al, 2005: 18). Partnership; “The relationship that exists between two companies or organizations that operate a business jointly with the aim of generating income. According to the Partnership Act 1958, partnership is the collection of sole traders who join together to generate income..