Have a new company you need to incorporate but don’t know where to start? If you need a guide, this is it. When you incorporate, you establish a persona that is legally distinct from yourself. The legal, financial, and record-keeping duties of a corporation are very different from those of other business arrangements.
When deciding on a company structure, it is important to keep in mind not only the company’s goals but also the legal framework under which they might be achieved. We’ve got answers to all your first-time questions from our seasoned pros.
How Much Does It Cost To Register A Company In Australia?
Doing business in Australia is highly recommended. The fact that households have a lot of money to spend on things they don’t have to is one reason why the retail and food service industries are doing well.
To get started with your business successfully, you need to know the preliminary expenses involved. It lets you set aside enough money to pay for all of the costs that come with starting a business.
Getting your business officially established is the first order of business, so let’s do that now. Familiarize yourself with the necessary steps, expenses, and registration information.
4 Preparations For Australian Company Registration
Pick A Creative Name For Your Business.
Your trademark will be your company’s name. Think hard about a name for your business that shows what it does and what services it provides. A marketable product is essential.
Consider the company’s values, goals, and objectives. Use these as compass points when you think of a name for your company.
Tips for creating a memorable business name:
- Check online to find out whether your desired name is taken.
- Spell, pronounce, and remember your business name. Simplify.
- Brand it by including your USP.
- Name it web-friendly. Given the market’s digitization, you’ll require a website.
If a domain matches your name, register it before anyone else does.
Set Up Your Business Organization
The following step is to determine the legal form your company will take. The following alternatives have been verified as legal inside the country for your perusal:
- Company
In Australia, a corporation must be registered with the Australian Securities and Investments Commission (ASIC) as it is treated as a distinct legal entity. There is no difference between a corporation and a human being in terms of legal protections.
As such, it can engage in contracts and take on debt in the same ways that a regular person would. It also can file and respond to lawsuits. Businesses have shareholders who own the company (sometimes referred to as members).
These investors can be corporations, trusts, or even private individuals. Shareholders’ liability is limited to the value of their shares and they are normally not responsible for the obligations of the corporation (unless they provide personal guarantees to borrow money).
To put it simply, businesses are taxed at a rate different from that of individuals. The full rate of company taxation is currently 30%. (but a lower base rate entity tax rate may apply in some circumstances).
- Sole Trader
Sole proprietorships don’t require any more formal organization than that. In this model, a single human being is accountable for the entire company. A sole proprietor, for instance, is free to enter into contracts and take on debt in their name.
Consequently, a lone trader’s obligation to the business is unlimited, and the sole trader may bring and defend legal actions against the business in his or her name.
- Partnership
A partnership consists of two or more individuals or legal organizations who conduct business together or share profits.
One or more partners in a partnership act as managers of the business and share in the profits and losses. There is no such thing as a “partnership” under the law. That all partners share equally in the responsibility for the partnership’s debts and liabilities.
A partnership agreement is typically drawn into to control the formal parameters of a partnership, including but not limited to decision-making and the transfer or sale of a partnership interest.
For organizational purposes, the partners may also choose a manager who, as the name implies, manages the partnership on behalf of the partners.
- Trust
A trust is an agreement in which one party (the trustee, who can be an individual or a corporation) agrees to hold property or assets (such as business assets) for the benefit of another party or parties (known as beneficiaries). The trustee will have record ownership of the trust’s assets, but the trust itself will be the true owner.
This necessitates the trustee’s authority to bind the trust to contracts, incur debt, etc., in the name of the trust.
A trust is created through the execution of a deed (often by the trustee, the settlor, and the appointees, (if applicable). There can be tax benefits to setting up your company as a trust.
Acknowledge Your Obligations
Depending on the organizational structure of your business, your duties as a director may change. You must have a thorough familiarity with your legal responsibilities under the Corporations Act, both to and for the business you are forming.
Obtaining An Australian Company Number: A Primer (ACN)
The Australian Company Number is a unique identifier for every business in the country (ACN). It’s a 9-digit code that represents your company. When you register your company, you’ll be assigned an ACN immediately.
How to Form A Company In Australia And How Much It Will Cost
Learn the steps and associated costs for establishing a company in Australia.
Determine If Your Company Name Is Available.
The first step in starting a business is making sure the name you’ve chosen isn’t already in use. Never use a previously registered name while registering. This page allows you to verify the availability of a specific time and date.
Learn About The Company Registration Fee.
The average cost to register a corporation in Australia is between $443 and $538.
It’s a good idea to double-check all the charges that might apply to you according to the rules set forth by the Australian Securities and Investments Commission. The list is lengthy; therefore, it is recommended that you seek the assistance of professionals who are familiar with the paperwork involved and the associated costs.
Please be aware that credit cards are the only accepted form of payment. Credit cards like Visa and Mastercard are accepted.
Australian Company Registration Time
Thanks to improvements in technology, the process of signing up can now be done in as little as 15 minutes. Your firm can be registered on the spot if you visit the website of the Business Registration Service.
The form may be completed within 15 minutes, and a confirmation will be sent out within two business days.
Review Registration
After a full year has passed since the date of your company’s registration, the registration will be reviewed.
ASIC will send you a statement every year asking you to pay the company fee and give information about how things went the previous year. ASIC also requires that you provide a solvency resolution and updated company information.
Tax Registration
Businesses in Australia are also required to pay taxes.
- Luxury car tax
- Fuel tax credits
- Goods and service tax
- Pay as You Go tax
- Fringe Benefits tax
- Wine Equalisation tax
You are responsible for researching the types of taxes that your company is required to pay.
Conclusion
A company has its own set of legal responsibilities. If you decide that a corporation is the best way to run your business, you will need to register it as a corporation.
Even if the procedure for registering a business and the cost structure are both very involved, this does not change the fact that Australia is an ideal environment in which to conduct commercial transactions. Now is the time to take action and turn your ideal company into a successful reality.
To learn more, go to registering company australia today!