Company Registration in Australia 2018-06-22T18:51:36+00:00


Impanix

Company Registration in Australia


  • No limit for registered capital

  • No requirement for local partnership

  • Complete foreign ownership allowed

  • Joint venture registration is allowed

  • Australia market entry strategy

A number of important considerations should be made by the investor before deciding on how to enter the Australian market or establishing a business in the continent.

It is mandatory for the owner to choose among the new company, a foreign company or acquiring an existing company. A variety of business structures available for starting a new business, each with its own regulatory and taxation aspects.

Different Types of Business Configuration in Australia

1. Sole Proprietorship

In the Sole Proprietor, an owner will be responsible for all activities of the business i.e. he has unlimited liability. To be more specific he will be solely liable for all the debts and losses arises from business and moreover. Formation of Sole proprietorship is easy and cost-effective. As a sole trader, an owner will be controlling and managing the whole business.  Incorporation 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

A company is comparatively complex business structure. The company has a separate legal entity and it enjoys the same rights as a natural person. It can easily be sue and sued in its own name. The directors and shareholders are not personally liable for any liability that arises in the company.

A company in Australia is required to be registered with the Australian Securities and Investments Commission (ASIC). Directors will manage the business operation and shareholders will own the company.

The company will file a tax return with the ATO annually.

3. Partnership formation 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 also easy and cost-effective and it requires a separate Tax File Number.   The partnership is not a separate legal entity i.e. partners will be held personally liable for debts of the business.

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

4. Trust Formation

A trust is a legal obligation imposed on a trustee, to hold property or assets for the benefit of other beneficiaries. Trust deed will define the function and operation of the trust.

The trustee will be required to perform the administrative task yearly. A trustee will be held liable for the operations of the trust.

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

Steps for Company Registration in Australia

A trust is a legal obligation imposed on a trustee, to hold property or assets for the benefit of other beneficiaries. Trust deed will define the function and operation of the trust.

The trustee will be required to perform the administrative task yearly. A trustee will be held liable for the operations of the trust.

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

Steps for Company Registration in Australia

  1. Before the filing of a company registration in Australia, must confirm the availability of the proposed company name.
  2. Select a unique company name to register the company but having a company name in Australia is not compulsory.
  3.  The Australian Company Number (ACN) given to the company can be its name as well.
  4. ACN is the unique number given to a company by ASIC on any company getting incorporated.
  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 is required to have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its name.
  7.  ASIC Application Form 201(Application for Registration as an Australian Company) should be completed in all respects and is required to be submitted 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) must be a citizen of Australia.
  10. Depending upon the business and location of the company, the company must comply with different taxation requirements:
  • It is mandatorily required 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.
  • The application can be submitted electronically at the Business Entry Point of ABN. The applicant will be provided with an ABN at the end of the application filing session if the application is filed successfully. The ABN will be mailed by the ATO within 28 days of receiving the application.
  • Any company with an annual turnover of AUD$75,000 or more fails to get an ABN, the GST will be levied on all company sales from the required date of registration despite the sale prices of any goods or services not being grossed up to come under the tax slabs. Furthermore, the company shall also be charged for the interests and penalties for any of its overdue payments to the department.
  • The company will have to pay a Corporate Tax at the rate of 27.5 % if its annual income is less than AUD$ 2 Million in a financial year.


For any further assistance in company registration in Australia, one can easily contact us at Impanix. We will be more happy to help you.