How To Incorporate A Company? Steps To Follow For The Company Registration

Posted by Ali Tariq on May 30th, 2019

The Company incorporation means incorporating an entity which offers certain benefits to each partner who involves in the partnership of incorporation; it also associated with the liability, taxation, and generation of the revenue or profits. Company registration is different for the different regions, for Australia it’s free to get the Australia business number, which is supposed to be the number of the company kept in the government records. But working as a trading company in the country needs to get the business name registered as well as keep your registration up to date with the new policies and charges by the government. A company is a complete entity which involves complete laws and tax obligations under the law and has to be fulfilled under the companies act defined by the state. For Australia, it generally cost you around 8 to 0 to get the Australian business number and Australian company number.

Following are the steps that should be followed to register a new company in Australia:

STEP 1: CHOOSE THE RIGHT COMPANY

Before the company registration and process, you need to understand the purpose of your company. The right business will not only benefit you, but it also gives the scope of revenue generation as well as a complete review of the laws and taxation regulations. As a company is a full entity with the responsibilities and liability so you can get the idea and assistance from the Australian companies registration desk so they can give you guidance about the tax liabilities, corporate responsibilities and other information as well.

STEP 2: SELECT NAME OF THE COMPANY

Selection of a company name is an important step, and before selecting the name, you must consider some steps like:

• The name must be unique or truly represents your business nature

• Name should not be identical to the existing company or entity

• Define the nature of the business like it’s a joint venture, a company, an individual holding or a trust

When a company name is registered, it transferred some obligations to its members, and for Australia, they wrote proprietary or pty at the end of the name of the company. If the liability or shares of the members are limited they it mentioned proprietarily limited, and if the shares or liability of the members are not limited, then it mentioned proprietary only.

STEP 3: DEFINE COMPANY’S RULES

Before going for the company incorporation, it is important to understand the Australian policies and regulations related to registering a new company. The rules will help you out that how the company start and do its operations.

• Some rules are basics and common rules which gives the pathway how to run the operations of the company. Some rules are replaceable which means that can be changed anytime when needed and do not need a proper constitution in a written form; it also does not get impacted by the change in the law as well.

• Besides, this company have a proper constitution which should be in written form. The company should mention the written constitution with the company record and other documentation while presenting for the incorporation.

• If a company have a person as an officer of the company, it does not need any replaceable rules or constitution, but if it goes with another appointment, then these rules automatically applied and exercised as per the laws.

• For the proprietary company, it is necessary to have at least 50 shareholders who may be:

• Limited by the shares or

• Be unlimited for the company who have share capital

• The proprietary company can only offer the shares to the company employee or other subsidiaries of the company

• The company cannot do any of the act which requires the disclosure to the investors  

STEP 4: SETUP HIERARCHY AND ITS OBLIGATIONS

Before filling for the company incorporation, detailed documentation requires which includes the setup and description of the hierarchy as well. You have to fill the hierarchy with the appointment of the people as well as mentioned their positions, responsibilities and roles to work in the company. The company must have the following hierarchy:

• Director ( must be above 18 years)

• Secretary (must be above 18 years)

• Member (every member must have at least one member)

• A company which is a proprietary company must have at least one director and one sectary who must be the resident of Australia

• For the public company, two directors must be appointed who must be the residents of Australia  

OBLIGATIONS

As per the Australian companies registration act, there are some obligations which apply to the officer or the director of the company. These obligations include the legal as well as taxation and some rules and regulation regarding the company’s operations. Some of them are stated below:

• An officer should maintain the data of the company and keep the records up to date as per the law.

• The records of the company should be well maintained into the register of the company’s account, which includes the taxation, liabilities, revenue and other obligations.

• Should be up to date with the company annual fees and requirement under the company’s incorporation act which should be review and submitted on time.

• The officer is responsible for the company’s operations sickness as per the company incorporation act.

STEP 5: REGISTERING THE COMPANY

For the registration of a new company in Australia, you can undergo the following three different steps:

• Australian Government business registration services:

You can contact directly with the Australian government business registration services, which gives you one platform on all to proceed with the taxation, regulations and others and make it easy for the individual to registered and start the company operations.

• A private services agent

You can contact a hire private services provide which can be a solicitor, accountant and another official which are committed to providing you with the online registration services for the company. They will guide you with the proper proceeding and help you out with the legal operations and others, for this they charge you with some extra fee other than the registration cost.

• Fill the form directly with ASIC

Australian securities and investment commission is an entity where the proceeding for companies registration takes place. You can directly fill the form with the ASIC which is form 201 and send it to them on their mailing address. Make sure to attach the complete documents with the sign and post with the fee in the form of a cheque or pay the order.

After the documents filled or process completed and you got the ACN or ABN numbers, then you have to keep the records of the company updated and will be able to display it to the public.