5 Lessons Learned: Companies

How to Form a Company in Australia

Setting up a company and deciding on the right structure should not be taken easily. In Australia, incorporating a company is straightforward. Below are the steps you should follow when forming a company in Australia.

Ensure you choose the right company. There are different types of companies including charitable companies, and special purpose 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.

Choose a company name. 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. The names of companies should display the liabilities and statuses of their 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.

Ensure you know how the company will be governed. 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 with one officeholder does not require either constitution or 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 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. For a proprietary company, at least a director and a secretary ought to reside in Australia. For public companies, at least two directors should reside in Australia. If the company does not own the registered offices, you should have a written permission of using the address.

Register your company. You can request for an ABN then use the Government Business Registration Service to register your company online. Secondly, it is possible to get your company registered by a private service provider responsible with providing online services with ASIC. It is possible to register your company with ASIC directly by completing their form then mail it to their offices.

Looking On The Bright Side of Companies

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