How to Form a Company in Australia
Creating a company and selecting on the right structure is a hard 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 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. 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 ought to show the status and liability of its members. If you are not settled on registering your company, you can request a name to be preserved for a period not exceeding two months, after which you have to re-reserve the name again.
Determine what will govern the company. You can get your company governed through replaceable rules if you do not want it to use a constitution. Using replaceable rules implies that a company will not need to be updating it due to 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 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 need to have a written approval from the people that will serve as members, secretaries, and directors. A proprietary company should have one director and secretary residing in Australia. For public companies, at least two directors should reside in Australia. 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.
Get your company registered. You can apply for an ABN to register your company online through the Government Business Registration Service. Secondly, it is possible to get your company registered by a private service provider responsible with providing online services with ASIC. You can also register with ASIC directly by filling their form and mailing it to ASIC.