- In the whole Asia-Pacific region, Australia remains the nation that provides the utmost stable economy, with transparency in the legal system and arms the shield of protection to investors. This seeks the attention of the entrepreneurs to register company in Australia to embark on a strong presence in the regional and global sector.
- Prior to taking the registration process forward, the Australian Government had made sure to adhere to the norms that are being given by the Australian Securities and Investments Commission (ASIC). The process of registration is digitized, and for easy disposal of the applications, the process has been listed on their official website:
- For any entity, it remains of pivotal concern to get hands on with the legal compliances and documentation process inculcated in this quest. Here is the step-by-step guide that will aid you with the detailed procedures, adherence to regulations, and provision of compliances as enumerated in the Corporation Act, 2001.
Types of business structure in Australia
- Before diving into the stringent process of registering a company in Australia, one must know about the business structures that are validated by the Australian Securities and Investments Commission (ASIC).
Proprietary Limited Company (Pty Ltd.)
- The private entities and small-midsize business owners can prefer this structure, as this allows to give limited liability for the shareholders to an extent. The non- employee size range for this structure is limited to a maximum of 50 shareholders.
- This type of company requires one Australian resident as a director.
Public Companies (Ltd.)
- The companies that are willing to generate capital from the public are renowned as public Ltd. companies. They are allowed to list themselves on the national stock exchange.
- It is important to appoint 3 directors and one company secretary, out of which two directors must be Australian residents.
Branch Office
- This type of company allows you to merge your legal entity of a foreign company into an Australian company, for which you need not provide a separate legal entity to the Australian business structure. Registration with the ASIC remains the pivotal point for the incorporation.
- Having the appointment of a local agent is another statutory compliance that is required.
Representative Office
- When foreign companies want to indulge in non-commercial activities, the best structure that suits them is to have a representative office. This structure aids companies in conducting in-depth market research, promotional events, and liaison activities. The best part about the company is that it is not compulsory to get this one registered with provisions of the Corporation Act, 2001.
Prior compliances to register a company in Australia
When you think of registering a company in Australia, you need to comply with these 5 undermentioned points:
- One must choose the company name, and that will be generated keeping in mind the ASIC rules for naming the company.
- A registered office address serves as the main requirement for registering a company in Australia, and that address needs to be the physical address that exists and not just a post office box address for the company.
- The company needs to create a rule book for internal governance that needs to comply with the Corporations Act 2001. The act allows the entrepreneur to have the rule book to conduct business operations for the enterprises.
- The identities, addresses, and residential places of the directors and secretaries must be provided prior to the registration of the company. The most considerable point for the directors is to have the identification number known as the Director Identification Number before getting into the steps of registering a company.
- The companies are required to disclose the share capital along with the types and numbers of the shares that they have issued.
Steps to register a company in Australia
- Registering a company in Australia is a challenging undertaking, which requires professional assistance that will make this process easy for you. Follow these steps to get started with registration:
Step 1: Applying for an Australian business number and name:
- The foremost thing that is to be done is acquiring of the Australian Business Number. This number is separately allotted to the business structure that you are going to get registered. Along with the number, one also needs to get the name of the business also registered with the BRS.
- The ABN provides the unique number to the business entity and acts as an identifier. If you have applied for ABN and if the application becomes unsuccessful, then the application for getting the name will also be rejected and a refund will be generated.
- Sections 147 and 152 of Corporations Act 2001 specifically deal with the provisions to availability and reservation of the names for the company.
Step 2: Acquiring a Director’s Identification Number:
- After the completion of the ABN, the directors of the company are necessarily required to get a DIN. It is a combination of 15 numbers acting as a unique identity for the directors. A DIN is issued and administered by the Australian Business Registry Services, and directors can face legal penalties under the Treasury Laws Amendment Act 2019 for not complying with a DIN.
- Even after 13 March 2019, strict legal penalties can be enforced upon directors under these few acts too, including the Corporations Act 2001, AISC Act 2001, National Consumer Credit and Protection Act 2009, and Insurance Contract Act 1984.
Step 3: Registration of the Business on ABRS:
- As per section 9 of the Corporations Act 2001, registration for the companies must comply with an application that is to be presented in prescribed form. Section 117 of the said act directs the person to lodge the application to ASIC which can be done with the registration portal on ABRS.
- In the application name of the business, directors ‘ names, addresses of directors, company secretary and registered office, present family members and names, if a public company, then opening hours of the company, jurisdiction of the company, etc. must be provided in the application.
Step 4: Applying for opening a Corporate Bank Account:
- Once all the applications have been submitted and business numbers has been acquired, a bank account on the name of the company necessarily needs to be opened in Australia in order to facilitate capital injection and business payments.
Step 5: Complying with Australian code and taxation rules:
- After the registration of the company, it is highly required to pay annual review fees and maintain records as per the provisions of ASIC.
- Lodging the ASIC form, along with maintaining the register of the company, filing tax returns, conducting and maintaining business activity statements, etc. Everything needs to be done and that will be duly taken care of by team of professionals.
Conclusion
- Registering a company in Australia requires navigating the complex legal procedures and strong regulatory frameworks. Each step of registration complied with several distinct codes that govern the minute detailing, and if attention is not paid to each step, penalties can be imposed.
- To help you out with the process, you need the help of the consultancy firm, which is well versed in all procedures.