Steps for Forming a Company 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 tips that will help you in company formation in Australia.
You should decide on 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.
You should select the name of a company. 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. The names of companies should display the liabilities and statuses of their 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.
Ensure you know how the company will be governed. Your company can be governed by replaceable rules if it does not want to have a constitution. If you use replaceable rules, you will not need to make alterations with 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.
Understand your roles as an officeholder. If you are an officeholder of any company, you must adhere to what Corporations Act requires. 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.
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. At least two directors are needed to be residents of Australia for any public company If the company does not own the registered offices, you should have a written permission 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.