How to Form 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.
Settle on 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. 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.
Decide on how your company will operate. Your company can be governed by replaceable rules if it does not want to have a constitution. Using replaceable rules will exempt your company from keeping on being updated because of 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 doing your legal work including maintaining company records, paying the required fees, and ensuring the details of a company are updated. 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 should have a written consent from the individuals who will be directors, secretaries, members. For a proprietary company, at least a director and a secretary ought to reside in Australia. Public companies are needed to have a minimum of two directors residing 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 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. Also, you can directly register with ASIC by completing their form and sending it to their offices.