Tips for Company Formation in Australia
Creating a company and selecting on the right structure is a hard task. In Australia, incorporating a company is straightforward. Below are the steps you should follow when forming a company in Australia.
You should decide on the right company. There are different types of companies including charitable companies, and special purpose companies. You need to decide whether a company is suitable for your needs or if you should use another business structure.
You should select the name of a company. Your company name cannot be registered if it is being used by another company or business. A name with words that misguide clients on the business of a company and those considered offensive or displays illegality cannot be registered. A company name ought to show the status and liability of its members. 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.
Ensure you know how the company will be governed. In case you do not desire your company to be governed by a constitution, you can use replaceable rules. If you use replaceable rules, you will not need to make alterations with changes in the law. Secondly, your company can get governed through a written constitution. 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 performing your legal duties such as ensuring company details are updated, maintaining company records, and paying the necessary fees. The ultimate responsibility of officeholders is to ensure that the company adhered to the Corporations Act.
Get the consent of members, occupiers, and officeholders. You ought to obtain a written permission from the individuals that will serve in the capacity of secretaries, directors, and 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 offices you are using to register are not owned by the company, a written consent is needed to show consent of using its address.
Register your company. You can register your company online by applying for an ABN from the Government Business Registration Service. Secondly, you can register with a private service provider that offers online services with ASIC. It is possible to register your company with ASIC directly by completing their form then mail it to their offices.