Tips for Company Formation in Australia
Starting a company and choosing the right structure is not an easy task. In Australia, incorporating a company is straightforward. Below are the tips that will help you in company formation in Australia.
You should decide on the right company. There are numerous categories of companies such as charitable and special purpose companies. You should determine the company that suits your needs or if you have to use a different business structure.
Ensure you decide on the company name. The company name you choose will not be registered if an existing business or company uses it. You cannot use words that would misguide people on the activities of a company or if it is considered offensive or points to illegal activity. A company name should show the liability its members have and status. In case you are not ready to get your company registered, you can apply for its reservation for a maximum period of two months after which reservation ought to be done again.
Decide on how your company will operate. Your company can be governed by replaceable rules if it does not want to have a constitution. Using replaceable rules will exempt your company from keeping on being updated because of changes in the law. Secondly, you can write a constitution with which your company should be governed. A proprietary company that has one officeholder needs to have neither a constitution nor the replaceable rules.
Every officeholder should understand their roles. In case you are an officeholder of a company, you need to comply with the requirements in the Corporations Act. These include doing your legal work including maintaining company records, paying the required fees, and ensuring the details of a company are updated. The ultimate duty of officeholders is making sure that a company complies with the Corporations Act.
You should obtain consent from occupiers, officeholders, and members. You should have a written consent from the individuals who will be directors, secretaries, members. Proprietary companies are needed to have a minimum of one secretary and director residing in Australia. Public companies are needed to have a minimum of two directors residing in Australia. If the company does not own the registered offices, you should have a written permission of using the address.
Get your company registered. You can request for an ABN then use the Government Business Registration Service to register your company online. Secondly, you can request a private service provider who avails online services with ISIC to do your registration. You can also register with ASIC directly by filling their form and mailing it to ASIC.