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Company Registration in Australia

Company Law in Australia

Company law in Australia is primarily governed by the Corporations Act 2001, which is a federal law regulating the establishment, operation, and dissolution of companies in the country. Under Australian company law, various types of business entities are recognized, including companies, partnerships, and sole traders. In this overview, we will focus on the provisions, types of business entities, and the procedure for incorporating a company under Australian company law, as well as provide a brief overview of taxation under Australian tax laws.

Provisions of Australian Company Law:

1. Types of Business Entities: Under Australian company law, various business entities are recognized, including:

  • Public Companies (Ltd.): These are companies that offer their shares to the public and must have at least three directors.
  • Proprietary Companies (Pty Ltd.): These are private companies with fewer regulatory requirements than public companies.
  • Partnerships: Business entities in which two or more individuals or entities operate together with shared ownership.
  • Sole Traders: Individuals who operate a business on their own.

2. Limited Liability: Companies limited by shares (both public and proprietary) offer limited liability protection to their shareholders. Shareholders' liability is limited to the amount unpaid on their shares.

Procedure for Incorporating a Company in Australia:

1. Choose a Company Type: Decide on the type of company you want to establish (public or proprietary) and the company structure (e.g., Pty Ltd.).

2. Reserve a Company Name:

  • Check the availability of your chosen company name through the Australian Securities and Investments Commission (ASIC) website.
  • Reserve the name if it's available.

3. Appoint Directors and Company Secretary:

  • Appoint at least one director (three for public companies).
  • Appoint a company secretary (optional but recommended).

4. Prepare a Constitution:

  • Draft a company constitution that outlines the rules governing the company's operation.

5. Register the Company:

  • Lodge the necessary documents with ASIC, including the application for registration (Form 201), a copy of the company constitution, and details of directors and shareholders.
  • Pay the registration fee.

6. Obtain an Australian Company Number (ACN):

  • Upon registration, you will receive an ACN, which is used for various business transactions and dealings.

7. Register for an Australian Business Number (ABN) and Tax File Number (TFN):

  • If required, register for an ABN and TFN through the Australian Business Register (ABR).

8. Comply with Reporting and Record-Keeping Requirements:

  • Ensure compliance with ASIC's ongoing reporting requirements, including annual financial statements and lodgements.

Forms, Documents, and Fees:

  • The primary form for company registration is Form 201 (Application for Registration as an Australian Company). The exact forms and documents required may vary depending on the type of company and specific circumstances.
  • The registration fee for a proprietary company is typically around AUD 479 (as of my last knowledge update in September 2021), but fees can vary. Public company registration fees may be higher.
  • You'll need to provide details of directors, shareholders, the company's constitution, and other relevant documents.

Taxation under Australian Tax Laws:

  • Companies in Australia are subject to corporate income tax on their profits. The corporate tax rate is generally 30%, but it can vary based on the size and structure of the company.
  • Companies must also comply with Goods and Services Tax (GST) requirements if their annual turnover exceeds a certain threshold.
  • Detailed financial reporting and tax compliance are essential, and companies may seek professional advice to optimize their tax positions and meet tax obligations.

It's crucial to consult with legal and tax professionals or refer to the latest government resources for the most up-to-date and detailed information on company incorporation, taxation, and compliance requirements in Australia. You can take help of our professional who will navigate you to the journey of registration and compliance.



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