Congratulations on your planned Australian business venture! There is a lot of opportunity for new businesses to flourish here, and the government provides a lot of help to those who risk starting their businesses. Getting your company registered is a crucial first step in running a successful business.
This article will discuss the legal requirements, required paperwork, and associated fees for registering a corporation in Australia. It doesn’t matter if you’re a local or a foreigner hoping to open a shop in Australia; we’ve got you covered either way. Let’s dive in right now!
Company Registration: What Is It?
When a company is formally registered, it is established in law as an independent entity, apart from its owners or shareholders. Specifically, in Australia, this means registering your company with ASIC, the government organization in charge of overseeing the country’s businesses and financial markets.
Business registration requires you to select a company name, name directors and shareholders, and detail the company’s ownership and capitalization. Further documents, such as a business constitution, shareholder agreement, and registration costs will also be required.
Less liability for shareholders, better access to capital and investment, and a more professional appearance are just a few of the advantages that your company will enjoy if you take the time to register it. And it might give you an edge in the market by keeping your company’s identity and brand safe from imitators.
You should know that the paperwork and costs associated with registering a company can change based on factors including the business structure you choose, the industry you operate in, and the location of your company. Hence, before launching a new company, it is wise to consult with experts in the field.
How Do I Register A Company In Australia?
Here are the steps to register company australia:
Choose Your Company Name
To “choose your company name” means to give your business a name that sets it apart from its owners or shareholders legally. This is the name under which all official documents, contracts, and communication relating to your Australian business will be issued. It has been registered with the Australian Securities and Investments Commission (ASIC).
Be sure your proposed business name isn’t currently in use by another firm or protected by a trademark application before submitting it for registration. The ASIC website features a “Company Name Availability Check” function.
Your business’s moniker should be memorable and straightforward to spell, as well as fitting with your core values and goals. Your company’s potential for expansion into other markets and product lines is another factor to think about when settling on a name.
Choose Your Company Type
To “choose your company type” means to decide on the form of Australian business organization that is most appropriate for your goals. The advantages and responsibilities of the various company structures available for registration in Australia are different.
In Australia, both private and public companies are very frequent. The most common business structure is a sole proprietorship, which is ideal for start-ups and smaller enterprises. There can be as many as fifty people who aren’t employees who own shares in a limited liability corporation.
On the other hand, public corporations can accept an infinite number of shareholders and public investment. As larger organizations, they must comply with stricter reporting and monitoring standards.
Appoint Directors And Shareholders
To “appoint directors and shareholders” is to select persons or legal entities to serve as directors and shareholders respectively in your firm. An Australian company’s affairs are managed and decisions are made by its directors, who are different from the company’s shareholders.
An Australian company registration requires at least one director and one shareholder. The director must be an individual, be at least 18 years old, and live in Australia. There is no requirement that shareholders be citizens or permanent residents of Australia.
Shareholders and directors need not be separate people, and in fact, many businesses have both. The shareholders elect directors to run the day-to-day operations, make important policy choices, and ensure the firm complies with all applicable laws.
Prepare The Necessary Documents
To “prepare the appropriate documents” is to create and arrange the official paperwork needed to register your company in Australia. A constitution, shareholders’ agreement, and other forms and applications may all fall under this category.
Your company’s constitutional documents lay out the ground rules for how the business will be run. This document describes the company’s goals, organizational structure, authorities, and other internal operations. In contrast, a shareholders’ agreement is a legal contract between a firm and its shareholders that spells out the roles and responsibilities of each party.
Register Your Company
To register your company in Australia is to establish your firm as a legally distinct entity. The first step is to officially establish your business in Australia by registering it with ASIC, the government agency in charge of overseeing corporations there.
Choosing a unique company name, settling on a company type, appointing directors and shareholders, and gathering the required paperwork are all prerequisites to registering a company. The application for ASIC registration of a company can be submitted whenever these requirements have been met.
You can submit your application for registration to ASIC by filling out an online form on their website. Your company’s name, type, and registration address will be required information, as will the names and contact information for any directors or shareholders you have appointed. The sort of company you wish to register will determine the registration price you will be required to pay.
Pay The Registration Fee
A corporation must pay the registration fee to the Australian Securities and Investments Commission to be officially recognized as a legal entity in that country (ASIC). Registration fees are non-refundable and go toward covering administrative expenses.
The cost of incorporating a business varies with the kind of enterprise being formed. In 2021, Australian dollars 495 will be required to register a proprietary business, the most prevalent kind of corporation in Australia. Companies organized for a specific purpose or open to the public may incur greater startup costs.
Obtain Necessary Licenses And Permits
Getting essential licenses and permissions means acquiring the legal authority to conduct business in Australia. Depending on the type of business you’re running and the industry you’re in, you may need various licenses and permits from different levels of government.
To ascertain what kinds of licenses and permits your company must have to operate, you can reach out to a government body, a trade group representing your sector, or a lawyer. It is vital to conduct your homework and acquire all relevant licenses and permits before opening your business, as the regulations may differ based on the state or area in which you operate.
Choosing a variety of business names, selecting a company form, naming directors and shareholders, preparing the required paperwork, paying the registration fee, and acquiring any required licenses and permits are all crucial aspects of the process of registering a company in Australia.
Taking these measures will help to establish your company’s legitimacy in the eyes of the law and assure its continued success as it grows and expands.
If you’re looking to register a business in Australia but are feeling overwhelmed by the procedure, know that there are many tools accessible to you, including internet guides, legal and accounting specialists, and government offices. If you put in the time and effort, you can set up a shop in Australia and start doing business in no time.