Australia is a highly entrepreneurial nation, with small companies acting as the backbone of the economy and labour force. These newest corporate numbers reflect the Australian culture of individualism, a do-it-yourself mentality, and a desire to explore.
Small enterprises continue to dominate the country’s economy, accounting for 99.8% of all Australian firms. Three out of every five businesses are unemployed, with over 98 per cent of all Australian companies employing fewer than twenty people. The most common size of an operating business is one to four employees, accounting for 71% of hiring firms. What, however, is the step-by-step process to register a business in Australia?
Select a Business Structure
When starting a new company, the most important initial step is to select a business structure that is right for you. While this article concentrates on how to register a business in Australia, you may choose between a partner, a sole trader, a trust, and a company when establishing your business. It is worth noting that your company’s structure may alter as it grows.
Select a Company Name
Having a company name allows your consumers to form an emotional attachment to your brand. And, unless you are a single trader, you will need a business name to register your business. You must check that the name you intend to register is not already in use and does not infringe on any preexisting trademarks.
Select a Business Address
Unless you are a single trader, you must have a registered business address as your registered office and primary place of business. ASIC will send you all official communications to that address, which will also be displayed as your principal business location. Your preferred business address cannot be a PO box.
Choose the right officers for your company
At least one of the company’s directors should be a resident of Australia. You must obtain written permission from your business’s officers and maintain it with your corporate records. If you are a foreign company that requires assistance in locating a local director to satisfy the criteria, you can contact local service providers for a charge.
How will you operate your company?
Before registering your firm, you must decide how it will be managed. Your company might be controlled by the following:
- rules that are interchangeable
- has its constitution
- a combination of both
Replaceable rules: The Corporations Act includes replaceable rules, a fundamental set of principles for running your firm. If a firm does not want to use a code, it can instead use replaceable rules. By using replaceable rules, your company can avoid the need for a written constitution. This removes the cost of maintaining it if the law changes.
Constitution: In addition, a firm may have a defined constitution rather than depending on fluctuating regulations. Companies must have a draft of their constitution on file with their other papers. If a proprietary corporation has only one member, no replacement regulations or constitutions are necessary. If another director is hired, the company is immediately subject to replacement regulations. This can be changed to a constitution later.
Due to the Australia’s good position for different commercial operations and low inflation rate, an investor can readily form a corporation. A stable government system helps to the stability of the corporate environment.
So, if you are thinking about starting a business, you need to register your company since it is critical; failing to register may result in legal ramifications. If you have any concerns regarding starting a company, do not hesitate to talk to an attorney who will assist you.