Steps for Forming a Company in Australia
Setting up a company and deciding on the right structure should not be taken easily. In Australia, the process of company formation is straightforward. Below are the guidelines on how to form a company in Australia.
Settle on the right company. There are different types of companies including charitable companies, and special purpose 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. The company name you choose will not be registered if an existing business or company uses it. 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 ready for your company’s registration, you can apply for reservation but after 2 months, you should reserve the name again.
Decide on how your company will operate. 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, a constitution can be written to govern a company. A proprietary company with one officeholder does not require either constitution or replaceable rules.
Understand your roles as an officeholder. Being one of the officeholders of a company needs that you adhere to Corporations Act requirements. 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.
Ensure you have the consent of officeholders, occupiers, and members. You ought to obtain a written permission from the individuals that will serve in the capacity of secretaries, directors, and members. For a proprietary company, at least a director and a secretary ought to reside in Australia. At least two directors are needed to be residents of Australia for any public company In case the offices you are registering with are not owned by the company, it is necessary r provide a written consent 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, you can register with a private service provider that offers online services with ASIC. Also, you can directly register with ASIC by completing their form and sending it to their offices.