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 guidelines on how to form a company in Australia.
Settle on the right company. There is a variety of company types including special purpose companies, and charitable companies. You need to settle on the company that aligns with your needs as well as if there is the need of using 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. 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. If you are not ready for your company’s registration, you can apply for reservation but after 2 months, you should reserve the name again.
Determine what will govern the company. 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 that has one officeholder needs to have neither a constitution nor the replaceable rules.
Each officeholder should know what is expected of them. 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. Officeholders are entirely responsible for adherence of the company to the Corporations Act.
You should obtain consent from occupiers, officeholders, 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 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. Also, you can directly register with ASIC by completing their form and sending it to their offices.