Kickstarting your business can be an overwhelming affair. There’s a bubble of excitement as well as an air of trepidation. The question, ‘whether the company will fly or crash?’ always stays in your mind. It’s natural.
So, before making this decision, ensure that you have diligently covered all essential aspects.
Wondering what these crucial factors are? Let’s walk you through them!
The structure of your business
Before you take the plunge to register your business, you need to evaluate the kind of structure it will fall into.
Remember that registering your business’s name is different from registering a company. To reiterate the official words, ASIC states that a company is a legal entity that allows you to run your business throughout the geographical boundaries of Australia.
Ask yourself this: does your business fall under the category of registerable Australian body, a not-for-profit organisation or a special purpose company? Once your company is registered, you will also be eligible for corporate tax rates.
Name of the company
When registering your company, you must ensure that the name you register under is not already taken by someone else. Then, you can run your business name idea under the name availability search provided by ASIC.
You cannot use words like ‘trust,’ ‘bank,’ or ‘incorporated’ unless you have the government’s approval. Additionally, the company’s name cannot suggest any illegal activities or be offensive.
Once you are sure, you can reserve this name for two months.
Will you formulate a unique constitution or use replaceable rules under the Corporations Act to govern your company? The governing guidelines will differ from trader to trader. You can also use a combination of both.
Status of residency
Your company should have a minimum of one member, and the director heading your company cannot be under 18.
Moreover, if you plan to run a proprietary company, the company’s director must be a resident of Australia.
First, if you have a proprietary company, it cannot constitute any more than 50 shareholders (non-employees.) Besides that, your company must limit itself by the number of shares. On the other hand, if it’s an unlimited company, then it can have share capital.
Moreover, you are expected to fulfil all the requirements stipulated under the Constitution Act.
You have a legal obligation to keep all the details about your company up-to-date. Any details and records of the company need to be in writing, in a register.
You must also pay the necessary lodgement fees and any applicable review fee.
It’s significant to register your company in Australia either via the Business Registration service offered by the Australian government or a PSP (private service provider.)
PSPs are solicitors, business offering services or accountants that are per ASIC.
Your responsibilities don’t conclude once your company is registered. You must also ensure that your company always holds a valid ACN/ABN. That should also reflect on any official document prepared by the company.
Add all the changes, and details should be maintained as and when it happens.
Registering your company in Australia can seem like a massive hassle, wherein you need to keep many things in mind. One wrong move can disqualify your registration.
If you keep the above seven significant factors mentioned in mind, you should be good.
Several companies offer help throughout the registration and setup procedure if you need assistance. Please make use of them.
All the best for your great endeavours!