Company Registration in Australia

  • No limit for registered capital

  • local partnership not required

  • Allowance of Complete Foreign Ownership

  • Allowance of Joint venture registration

  • Complete Australia market entry strategy

Company Registration

Company Registration in Australia

A number of important factors should be taken care by the investor before planning company registration in Australia or to enter the Australian market. It is important for the owner to select among the new company, a foreign company or acquiring an existing company. A number of business structures are available and each has its own regulations. We at LegalRaasta will help you regarding company registration in Australia.

Types of Business in Australia

1. Sole Proprietorship :

In case of Sole Proprietor, the owner has complete responsibility for all the business activities. He has unlimited liability. To be more clear, he is solely liable for all the debts and losses occurring from the business. Setting-up of Sole proprietorship is easy and cost-effective. As the sole trader, the owner is the controller and manager of the whole business. Fusion of the sole trader is simple and it is based on low-cost structure. In case of sole proprietorship, the trader will file tax returns using Tax File Number(TFN).

2. Limited Liability Company :

LLCs have a little bit of complex business structure. This type of companies have a separate legal entity and enjoys the same rights as a normal one. It is easy to sue on its own name. The directors and shareholders are not personally liable for any liability that arises in the company.

A company registration in Australia is done in the Australian Securities and Investments Commission (ASIC). Directors are responsible for the business operations and shareholders own the company. The company will file a tax return with the ATO annually.

3. Partnership in Australia :

In partnership, two or more people come together to carry a business. The maximum number of partners in a partnership is 20. There are two types of partnerships – general and limited. Formation of the partnership is quite easy and cost-effective and requires a separate Tax File Number. The partnership is not a separate legal entity i.e. all the partners are personally liable for debts of the business.

It requires the individual Tax File Number. The tax return is filed with the Australian Taxation Office (ATO) annually. If the turnover of a partnership is more than $75,000 than registration for GST is the must.

4. Trust building :

A trust is a legal bounding implied on a trustee, to hold property or assets for the benefit of other beneficiaries. Trust deed will tell about the function and operation of the trust. The trustee is expected to perform the administrative tasks annually. A trustee will be liable for the operations of the trust.

A company can easily become a trustee of a trust, providing some asset protection.

5. Apply for PAN, TAN and Bank account :

Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with a bank to open your bank account.

Steps for Company Registration in Australia

  1. Before filing, the company registration in Australia, be sure about the confirm availability of the proposed name.
  2. Select a unique company name to register the company.
  3. The company can use the Australian Company Number (ACN) given to the company as their name.
  4. ACN is the unique number given to a company by ASIC on any accumulating company.
  5. A certificate of incorporation is issued by ASIC upon incorporation, which is an evidence that the company has been incorporated on and from the date of issue.
  6. A proprietary company should have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its name.
  7. Complete the ASIC Application Form 201(Application for Registration as an Australian Company) in all respects. They require to submit it to the Australian Securities and Investments Commission (ASIC) for the registration of Proprietary (Pvt Ltd) company.
  8. Each director and shareholder of the company must give their consent in writing to become the director and shareholder respectively.
  9. At least one director and one secretary(if appointed) should be an Australia citizen.
  10. Depending upon the business and location of the company, the company must comply with different taxation requirements.

Requirements for Company Registration in Australia

  • It is very important to register for GST by obtaining a digit Australian Business Number (ABN) if the annual turnover of the company is more than AUD$75,000.
  • One can submit the application electronically at the Business Entry Point of ABN. The applicant will receive an ABN at the end of the application filing session on the successful filing of the application. The ATO will send an e-mail within 28 days of receiving the application.
  • A company with an annual turnover of AUD$75,000 or more fails to get an ABN. GST is applicable on all company sales from the required date of registration. Despite the sale prices of any goods or services not being grossing up to come under the tax slabs. Further, the company shall also be payable for the interests and penalties for any of its overdue payments to the department.
  • The company will have to pay a Corporate Tax at the rate of 27.5 % if its annual income is less than AUD$ 2 Million in a financial year.

Reach Us

For any further assistance in company registration in Australia, visit us LegalRaasta. We will be glad to help you.

Frequently Asked Questions

1. What is a company and how is it structured?
The company is a lawful entity made of up directors, secretaries and shareholders and a director is responsible for the day to day running of the company. A secretary is someone who is in charge of general company housekeeping duties such as making sure returns are filed on time, notifying when addresses change etc. Further, a shareholder can be explained as someone who owns the company through holding shares.
2. How is a company regulated in Australia?
ASIC (Australian Securities & Investments Commission) is the major regulatory authority. Each company may have its own set of rules which can be laid out in its constitution. If a company does not have a constitution it goes by the “replaceable rules” of the Corporporations Act, 2001.
3. Who can form an Australian Company?
Anybody over the age of 18 can form a company in Australia providing they are not bankrupt. At least one director should be a resident in Australia. Also, a Physical location is required (registered office address) for the business in Australia.
4. Who can be the Director?
Anyone can be the Director. A person cannot be a director if he is an undischarged bankrupt or they have been convicted of an offence such as fraud or they are under the age of 18.
5. Can I form a company with just one person?
Yes. A company needs to have one director and one shareholder. Both the roles can be acquired by a single person.
6. Can I form an SMSF trustee company?
Yes. A company can be registered electronically with a specification that it is to be the trustee of a super fund at the time of incorporation. This removes the need for completing extra forms and thus time saving.
7. What information do I need to supply?
Following informations are required, name of your new company, the names and addresses of people involved, such as directors, secretaries, shareholders and the official address for the company.
8. What is the main advantage of registering a company?
Shareholders of the company will have limited liability towards the debts of the company.
9. Who is responsible for the company?
Directors are ultimately responsible for the day-to-day running of the company and for ensuring its obligations with the Corporations Act, 2001.
10. What is Australian Business Number (ABN)?
Australian Business Number(ABN) is a unique 11 character long number identifier that makes it easier for businesses and all levels of government to interact.
11. Can a non-resident entity may be entitled to an ABN?
Yes, if it is carrying on an enterprise in Australia or is in the course of carrying on an enterprise, it makes sales that are connected with Australia (your enterprise does not have to be located in Australia).