How Do I Incorporate a Company in Australia?
A company structure is one of the most popular business structures in Australia. The fact that a company is a separate legal entity and has limited liability makes it an attractive option for business owners looking to grow their operations. However, company incorporation is relatively more complex than some other business structures (compared to sole traders and partnerships) and often requires more to comply with its legal obligations. This article details the process of how to incorperate a company.
Our Company Registration package includes the following:
- DSC for one director and DIN for up to three directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
Registration of a Company
Setting up a company is a complex process. The Australian Securities and Investment Commission (ASIC) oversees and regulates the company incorporation process. To set up a company, you must:
- Determine the type of company you wish to incorporate
- decide on an appropriate structure for internal governance
- obtain the consent of each proposed director and a secretary
- choose and reserve a name for the new company
- locate an address for the company’s registered office
- locate a principal place of business
- settle on a share structure and members
- make an application to ASIC and pay a registration fee
- receive a certificate of registration
Type of Company
The kind of company that you wish to incorporate affects the documents you need to include in your application for registration. If you wish to set up a company limited by shares or an unlimited company, you will need to include information about:
- what class of shares each member has agreed to take up
- the amount they will pay
- whether they will pay fully upon registration
- if they will beneficially own the shares
Most companies require an internal governance structure for company incorporation. The exception is a proprietary (private) company with a single shareholder and director. For these companies, the Corporations Act (the Act) prescribes rules which are non-negotiable.
- procedures for meetings of directors and members
- share transfers
- the appointment and removal of directors
Directors and Secretary
Every person who applies to register a company must have the written consent of all proposed directors to act in that role and, if necessary, that of a company secretary. An individual does not need to give these to ASIC when they register their company. However, they should keep them with their other records after company incorporation.
An individual can choose a name for their corporation. If they do, they need to reserve the name and then register it. ASIC manages both processes. Alternatively, a company can use the Australian Company Number issued to it by ASIC.
All companies with more than one shareholder need a shareholders agreement. This is an agreement between two or more shareholders on their roles and responsibilities.
To complete company incorporation, an individual needs to complete Form 201 and pay the prescribed fee. The form is available online. Once ASIC has registered a company, they send a Certificate of Registration to the company’s registered office. The Certificate must be visible in the company’s principal place of business.
A company’s minute book records proceedings of meetings of directors and members. It also records any resolutions made during such meetings.
Documents To Be Submitted
- Lease documents/agreement in case of premises are on lease
- ID Proof
- Occupancy Certificate
- Address Proof
- Cancelled Cheque
- Certificate of Incorporation
- PAN of Entity