Tips for Company Formation in Australia
Starting a company and choosing the right structure is not an easy task. In Australia, the process of company formation is straightforward. Below are the tips that will help you in company formation in Australia.
Ensure you choose the right company. There is a variety of company types including special purpose companies, and charitable companies. You need to decide whether a company is suitable for your needs or if you should use another business structure.
Ensure you decide on the company name. You cannot register a company with a name that belongs to an existing company or business. When registering a company, words that mislead consumers on the operations of a company as well as those that offensive and pointing to lawlessness will make the name to be disqualified. 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. Using replaceable rules will exempt your company from keeping on being updated because of changes in the law. Secondly, your company can get governed through a written constitution. A proprietary company with one officeholder does not require either constitution or replaceable rules.
Each officeholder should know what is expected of them. If you are an officeholder of any company, you must adhere to what Corporations Act requires. Among these is carrying out your legal roles such as paying the needed fees, maintaining company records, and ensuring information about a company keeps updated. The ultimate responsibility of officeholders is to ensure that the company adhered to the Corporations Act.
Ensure you have the consent of officeholders, occupiers, and members. You ought to obtain a written permission from the individuals that will serve in the capacity of secretaries, directors, and members. For a proprietary company, at least a director and a secretary ought to reside in Australia. At least two directors are needed to be residents of Australia for any public company In case the offices you are registering with are not owned by the company, it is necessary r provide a written consent of using the address.
Ensure your company gets registered. You can apply for an ABN to register your company online through the Government Business Registration Service. Secondly, you can register with a private service provider that offers online services with ASIC. You can also register with ASIC directly by filling their form and mailing it to ASIC.