How to register a company: Step by step Guide
Company registration may seem like a major step in a new business venture for many people. The process to register a company may be difficult if you are doing it for the first time. You may be worried to get the things done correctly. There are several questions popping into your head like how to get company registered? What paperwork do you need to complete? Should you engage an accountant or lawyer?
We are here to take the worry out of you for forming a company. We will guide you through the steps to register your company in Australia.
Step 1: Decide if a company structure is right for you.
You have to determine:
- Whether company the structure fits to your requirements. You should seek legal advice or any other professional assistance with your conditions.
- What your legal obligations are going to be as a company officeholder and Director.
Step 2: Decide a company name.
- Once you have decided on the company structure, next step is to choose your company’s name. You can have a preferred name or you can go with ACN as your company’s name, like 123 456 789 Pty Ltd. A proprietary company must insert the word 'Proprietary' or the abbreviation 'Pty' in its name and must also show the liability of its members, unless the members' liability is unlimited.
- You can only choose a company name that is not already registered to a company or business. Also the name should not be identical or similar to another company name already registered.
-
You also cannot use certain words and phrases like
- Trust
- Building society
- University
- Chamber of commerce
- Chartered
- You many also need to check if your proposed company name is similar or identical to any registered or pending trademark for company formation.
Step 3: Decide how to operate your company.
Before you make an application to set up a company, you must decide how the company will be internally governed. You'll need to decide if its internal governance operates under:
- replaceable rules as included in the Corporations Act 2001 or
- its own constitution, or
- a combination of both.
A proprietary company with a single member (shareholder) who is also the sole director of that company is not needed to have formal set of rules governing its internal relationship thus does not need a constitution. However, if later on, if an additional director is appointed or an additional person becomes member, the replaceable rules will automatically apply to the company or company may choose to adopt a constitution.
Replaceable rules are not applicable to Special purpose companies like Superannuation Trustee company for which adoption of constitution is necessary.
Step 4: Understand your legal obligations as an officeholder.
If you are a director or secretary of a company, you must follow the requirements set out in the Corporations Act. It is important to make sure that company officeholders know what their legal obligations are, for example:
- ensuring company details are kept up to date
- maintaining various registers and records
- paying the appropriate lodgement and annual review fees to avoid late fees and non-compliance action.
The officeholders remain ultimately responsible for the company’s compliance with the Corporations Act.
Step 5: Get consent from officeholders, members and occupiers.
Before applying to register a company you must get written consent from people who agree to fill the following roles:
- director ( must be a person who is 18 years or older)
- secretary ( must be a person who is 18 years or older), and
- Member (every company must have at least one member).
A proprietary company must have at least one director, but does not need to have a secretary. The director and secretary (if any), must ordinarily reside in Australia.
If registered office of the company will not be occupied by the company but by somebody else like your solicitor or accountant or it is director’s residence, then the occupier of the premises must give written consent for the company to use that address.
Applicant must have the relevant consents and agreements when he lodges the application. These are not required to be sent to ASIC at the time of registration of company but these must be kept as part of the company’s records after it is registered. A register of members should also be maintained to record details about the members of company.
Step 6: Register your company.
You can register your Australian company through online company registration services, who are directly connected with ASIC. You can get all the necessary legal documents you will ever need for your newly formed company including constitution, registers, consents and share certificates instantly.
Step 7: Understand your legal obligations regarding your company name, ACN and ABN.
Display your company name:
A company must display its name prominently at every place at which the company carries on business that is open to the public.
Use your ACN (or ABN) correctly:
When a company is registered an ACN is provided to company by ASIC. If you then apply for an ABN, the number you get should finish with your nine-digit ACN. If this is so, you can then use your ABN instead of your ACN, wherever you have to use your ACN.
The company name, in legible characters, followed by the expression 'Australian Company Number' or ˜Australian Business Number˜ as appropriate (or a permitted abbreviation) and the number itself must appear on:
- every public document issued, signed or published by, or on behalf of, the company
- every eligible negotiable instrument issued, signed or published by, or on behalf of, the company, and
- All documents required to be lodged with ASIC under the Corporations Act.
The company registration in Australia is governed by ASIC (Australian Securities and Investment Commission) and the process is generally quite smooth if you involve a professionals to help you out. There are many ASIC registered agents who specialise in formation of companies. You can register your company on the linked website 24/7. The entire procedure for registration of company is very simple, fast and cost effective once you have registered your company, you get all incorporation documents such as minutes and consent letters, constitution, registers, share certificates along with certificate of registration by email. You can get these documents printed and express couriered to you in a “Deluxe Soft Leather Feel” folder with all documents marked with “Sign Here” stickers for nominal price.
You can download these documents anytime anywhere from your secured page on our website by logging in with your user name and password. Their experienced and professional staffs are available to answer your questions and assist you on live chat or on call