Company registration in Australia

Australia's previous year's GDP stood at 1.7 trillion US dollars, reflecting its unprecedented global presence in the economic realm. The country fosters high per capita income, a trade-friendly environment, and a resilient financial structure, paving a perfect launchpad for global investors seeking to set up a new business.

As with other nations, legalizing an entity is vitally essential before initiating any business, which typically means securing a company registration. Let’s see how you can apply for company registration in Australia elaborately, as it is your initial endeavor in your business quest.

Why Choose Australia for Business Endeavors?

Australia’s GDP has witnessed remarkable economic growth for the past two decades. It is among the economically stabilized nations fostering a trade-friendly business environment.  Even in the unprecedented crisis of 2008, Australia's trade balance hardly encountered any adversity, with a slight dip in 2012.

Australia leads from the front when exporting wine and agro-based products. Nations like China, Japan, and South Korea are among its prime importers. Tourism is another sector where this country shines, contributing significantly towards its GDP.

Almost half of the population serves different sectors to meet their end. A clean environment and controlled carbon emissions contribute to increased life expectancy and fertility rates. Australia has immense potential when it comes to business opportunities. The country fosters a strong economy, formidable financial infrastructure, and a supportive business environment.

Business structures for company registration in Australia

Australia’s corporate landscape offers various businesses, each adhering to unique regulations and norms. Let’s take a brief look at each of them:

Sole Proprietorship:

A sole proprietorship model is ideal for a single owner. It attracts less compliance and paperwork for registration. It offers complete legal ownership to the owner, be it a matter of managing daily chores or dealing with employees.

The only downside of this model is that it can’t prevent the entity from being exposed to losses or debts of the owners- meaning the owner and the entity do not have a separate legal identity. The owner of a sole proprietorship must have a Tax File Number (TFN) to align with the tax structure.

Company (Pty Ltd):

A company bears a separate legal identity and hence offers limited liability to its owners. It also allows for fundraising via share trading. It can be tedious to form such an entity owing to stringent compliance and paperwork.

Partnership firm:

Legally, two or more members can lay the foundation of a Partnership firm in Australia. As per the governing regulation, the number of members in such a business can go as high as 20.

Trust:

A trust is a legal model where trustees oversee the beneficiaries’ assets. Having a trust can ensure potential tax benefits and transparent income distribution. However, there may be events where managing a trust can be perplexing due to specific tax and legal requirements.

A Joint Venture

A Joint Venture is a legal structure where two or more parties strive to achieve common goals. This model provides for shared resources and risks, reinforcing the utilization of mutual expertise and capabilities. However, JVs typically do not have a longer lifespan as they are formed for specific goals or projects.

Note: Every organization, regardless of which model they choose, must address tax obligations with the Australian Tax Office (ATO). Having said that, every registered entity must have a unique tax file number. GST is mandatory for partnership-based entities registering yearly sales of more than $75,000.

Compliances to follow after securing Company Registration in Australia

Following are the post-registration norms that should be followed by registered entities to avert penalties:

Shareholder Meet-ups:

Within 18 months of kicking off your business journey and then five months after your fiscal year wraps up, gather your squad for a shareholder meeting.

Decision Time:

When it's decision-making time, you'll need a 75% vote from your board for resolutions on specific matters.

Annual Board:

Your Board of Directors is like the backbone of your business, so they should catch up at least once a year. Think of it as an annual catch-up to keep things running smoothly.

Pay Taxes:

File those federal tax returns, and remember, the corporate tax rate is floating around 25% to 30%.

Sharing paperwork with authority

Keep the Australian Securities and Investments Commission (ASIC) in the loop. They're eager to receive your balance sheets, annual reports, and financial statements. Don't keep them waiting—submit these docs within 15 months of each other.

Branch Office Formalities:

If you've got a branch or representative office based on your origin nation, make sure you bring them under your control by submitting all the required documentation.

Documents for company registration in Australia

• Approved company name reservation.
• Copy of the company's constitution.
• Details of directors and company secretaries (names, addresses, birthdates).
• Details of shareholders or members.
• Registered office address.
• Principal place of business details.
• Information on the company's share structure.
• Signed consent forms for directors and secretaries.
• Completed ASIC forms for company registration.
• Proof of payment for the application fee.
• ABN application or existing ABN.
• TFN application or existing TFN.
• GST registration details if applicable.
• Foreign company documents if applicable.

Company Registration in Australia: 5 Steps Guide

Step 1: Choosing a Company Name:

It's important to check that your proposed company name is legitimate before diving into the Australian company registration process. Go for a name that's unique and easy to remember while steering clear of anything offensive or misspelled.

Step 2: Deciding on Business Type:

If you're going for the proprietary model, always make sure to include 'proprietar' or 'pty' in there. You can also use your Australian Company Number (ACN) as the business name—ASIC assigns this distinctive number to your business.

Step 3: Filling Out the Application:

At this stage, you'll be filling out Application Form 201 and sending it over to ASIC. It's a crucial step in the Aussie company registration journey. Each shareholder and director needs to fill out their part of the form and throw in written consent to take on their roles in the company.

Step 4: Getting Your Directors in Place:

You've got to have at least one director who's an Aussie citizen. It's their job to make sure to stay aligned when it comes to compliance and tax regulations.

Step 5: Expressing Consent:

Anyone stepping up as a director or shareholder needs to put their agreement down in writing. Once the registration process is done, ASIC will hand you the certificate of incorporation. That's your official document saying your company is good to go from the date it's issued.

Connect with Adviso and start curtailing business intricacies

While going global with your business endeavors, things can go terribly wrong. Even a single mistake can lead to unexpected delays and cost ample time and money. No one wants that- that’s the bottom line. So, being prudent and proactive is the only solution. With Adviso as your partner, you can launch your new business on Australian soil in one go.

You do not have to dig into the nitty-gritty of the registration to breathe life into your new venture. All you need is a versatile backup of experienced professionals who would help you put your best foot forward. Adviso is home to seasoned experts specializing in regulatory and licensing affairs.