Steps for Forming a Company in Australia
Creating a company and selecting on the right structure is a hard task. In Australia, the process of company formation is straightforward. Below are the steps you should follow when forming a company in Australia.
Settle on the right company. There is a variety of company types including special purpose companies, and charitable companies. You should determine the company that suits your needs or if you have to use a different business structure.
Choose a company name. Your company name cannot be registered if it is being used by another company or business. You cannot use words that would misguide people on the activities of a company or if it is considered offensive or points to illegal activity. A company name should show the liability its members have and status. If you are not settled on registering your company, you can request a name to be preserved for a period not exceeding two months, after which you have to re-reserve the name again.
Determine what will govern the company. You can get your company governed through replaceable rules if you do not want it to use a constitution. Using replaceable rules will exempt your company from keeping on being updated because of changes in the law. Secondly, your company can get governed through a written constitution. A proprietary company with one officeholder does not require either constitution or replaceable rules.
Understand your roles as an officeholder. In case you are an officeholder of a company, you need to comply with the requirements in the Corporations Act. These include performing your legal duties such as ensuring company details are updated, maintaining company records, and paying the necessary fees. Officeholders are entirely responsible for adherence of the company to the Corporations Act.
Get the consent of members, occupiers, and officeholders. You should have a written consent from the individuals who will be directors, secretaries, members. A proprietary company should have one director and secretary residing in Australia. For public companies, at least two directors should reside in Australia. If the company does not own the registered offices, you should have a written permission of using the address.
Register your company. You can register your company online by applying for an ABN from the Government Business Registration Service. Secondly, it is possible to get your company registered by a private service provider responsible with providing online services with ASIC. You can also register with ASIC directly by filling their form and mailing it to ASIC.