[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]Unless you decide to operate as a sole trader or a partnership, when you establish a business in Australia you will need to go through the steps for company incorporation.
Doing this ensures your company is a legal entity of its own and confirms you are doing business in a way that aligns with Australian regulations. [/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_single_image image=”36340″ img_size=”full” alignment=”center” style=”vc_box_shadow” qode_css_animation=””][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_empty_space height=”15px”][vc_column_text]In Australia, company incorporated means you are registered as an official business. The following steps are part of the process:
How to incorporate a company in Australia
Name and protect your business
Before you get started as a company incorporation, you need to choose a name for your company so you can register it. Use a website such as Business Names Australia to check if there is already a company that has registered the name you want.
It is also worth checking copyright and trademark on your company name and tagline to make sure you won’t be competing with a similar business. Consider taking out a trademark yourself to protect your brand; a business lawyer can help you to do this.
Apply for relevant numbers and IDs
Once you know the name of your company, you can apply for an Australian Business Number (ABN) and register with the Australian Securities and Investments Commission (ASIC).
Register your company using the Australian Government’s Business Registration Service (BRS). When you have registered, you will receive an ACN (Australian Company Number).
As part of the company incorporated process, you can also register for GST, PAYG withholding (so you can pay your employees) and a few other elements such as fuel tax credits and fringe benefits taxes. If you’re not sure what to register for, you can go back and update your registrations at a later date. An accountant can help you figure out which taxes will apply to your company.
Finally, if you are the company’s Director, you will also need to apply for a Director ID. The identifier is relatively new in Australia and is used to keep track of people who take on company Director roles.
Confirm your structure and create agreements
Operating a company is a big responsibility and there are decisions involved with the way it is structured and operated.
Some decisions you will have to make include:
- Type of company – Your options include Proprietary Limited (Pty Ltd) and Public. A Pty Ltd company is limited to 50 shareholders and is where most businesses start from. The other option is to register as an Indigenous Corporation. You’ll find information about doing so here: https://www.oric.gov.au/catsi-act/about-catsi-act.
- Internal Governance Structure – If there is more than one shareholder in your company, you will need to either draft your own constitution or work from the Replaceable Rules in the Corporations Act, which gives you a framework to start with.
- Directors and shareholder agreements – Nominating directors and creating shareholder agreements will help you keep track of the roles and responsibilities of the parties involved in operating your business.
Company incorporated FAQ
Does a company incorporated mean registered?
Yes. The terms are interchangeable in Australia.
How much to incorporate a company?
As of 2022/2023, the basic cost of company incorporation in Australia ranges from $443 – $538, depending on the type of company you register. You can also pay a small fee of $55 to reserve a company name while you prepare to open your company.
How long does it take to incorporate a company?
The application process to register/incorporate a company should only take a few minutes once you have all the details you need. After your application is submitted, confirmation should come through within a few business days.
How do you get started setting up a company? Discover our company registration page.
Need help to prepare your company tax return? Visit Taxopia today. [/vc_column_text][vc_empty_space height=”25px”][vc_empty_space height=”20px”][vc_column_text]Should you require any additional assistance please don’t hesitate to contact us.[/vc_column_text][vc_column_text]
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