Study: My Understanding of Companies
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 tips that will help you in company formation in Australia.
Settle on the right company. There is a variety of company types including special purpose companies, and charitable companies. You should determine the company that suits your needs or if you have to use a different business structure.
Ensure you decide on the company name. You cannot register a company with a name that belongs to an existing 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. In case you do not desire your company to be governed by a constitution, you can use replaceable rules. Using replaceable rules implies that a company will not need to be updating it due to changes in the law. Secondly, your company can get governed through a written constitution. A proprietary company with one officeholder does not require either constitution or 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 performing your legal duties such as ensuring company details are updated, maintaining company records, and paying the necessary fees. The ultimate duty of officeholders is making sure that a company complies with 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. A proprietary company should have one director and secretary residing in Australia. For public companies, at least two directors should reside in Australia. If the offices you are using to register are not owned by the company, a written consent is needed to show consent of using its address.
Get your company 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.