A company that wants to start up in Australia must take these six steps listed below before beginning operations: business name, name, and address of the company, directors/members of the company, lawyers to be appointed, Australian Business Number (ABN), and registration with the Australian Taxation Office. In this article you will find information about what government registrations should you know about when starting a company in Australia.
What is a Business Entity?
A business entity is a legal construct used in many countries to organize and manage a company. In Australia, a business entity is defined as an entity that is formed or registered under the Corporations Act 2001 or any other similar laws in other jurisdictions.
There are two main types of business entities in Australia:
- Proprietary
- Public.
A proprietary entity is owned and operated by one or more individuals. In contrast, a public business entity is owned by the community as a whole and operated for the benefit of the community. Public business entities can be either hybrids or pure publics. A hybrid public business entity is a public company that also has some private elements (for example, ownership by specific individuals). A pure public business entity has no private elements.
What Are the Types of Companies in Australia?
There are three types of companies in Australia:
- Public
- Private
- Limited.
A public company is a company that is listed on the stock exchange and is open to the general public. Private companies are not listed on the stock exchange and are only open to members of the company for whom the board has approved directors. Limited companies are a special type of company that is formed for a specific purpose, such as owning land or businesses.
INCORPORATE YOUR BUSINESS IN AUSTRALIA
Who Can Become an Australian Company Director?
An Australian company director can be anyone who is 18 years or older and has a business interest in the company. The company must also be registered with ASIC and must have at least one director.
What are the Requirements for Registering with ASIC or ACN Australia?
Registration with ASIC is mandatory for all companies with a trading name, such as company name, registered trademark, etc.
You must also register with ACN Australia if you are:
- The sole trader or head of a business that is not incorporated or carries on business as a partnership
- The representative of a foreign company that is carrying on company in Australia.
There are a number of other requirements which must be met, depending on the type of company. For example if you are a company limited by shares, you will need to lodge an annual return and give notice of any changes to your articles of association.
How Do I Register My Company in Australia?
If you are thinking about starting your own business in Australia, you must register your company with the Australian Business Register. The process of registering a company can be complex, but there are a few vital legal essentials you will need to take into account. Here are some key points to keep in mind:
- Register your company with the Australian Securities and Investments Commission (ASIC)
- File an annual corporate return and financial statements with ASIC
- Make sure your company has valid directors and shareholder authorisations
- Register your company name with the Australian Trade Marks Office (ATMO)
- Protect your trademarks by registering them with the Australian Patent Office (APO).
Determine the Type of Business You Are Setting Up
The first step is to determine the type of business you are setting up. If you are setting up a sole trader or partnership, you will not need to register your company with the Australian Business Register (ABR). However, if you are setting up an incorporated company, such as a limited liability company (LLC) or a corporation, you will need to register with the ABR.
Choose an ABR Registration Number
Once you have determined the type of business you are setting up, the next step is to choose an ABR registration number. The registration number must be unique and must be allocated by the ABR. You can choose either a New Company Number (NCN) or an Existing Company Number (ECN).
Conclusion
When starting a company in Australia, it is important to understand the legal essentials. This article provides an overview of the most important laws and regulations you need to know when establishing your business in Australia.
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