A company is a separate legal entity formed under the Australian Corporations Law. Separate legal entity status enables a company to conduct its business affairs in its own name as a legal person. In other words, a company can buy, own and sell property; it can sue or be sued in its own name; and it can enter into contracts with others.
You can register your company with the Australian Securities and Investment Commission (ASIC). You will need to decide the name you want to call the company. You won’t be able to register the proposed name is identical to a registered business name. Once you registered your company and successful, you will receive a company registration certificate with Australian Company Number (ACN).
You will need to nominate directors, secretary and public officer of the proposed company. You also need to notify who are shareholders and give their shareholding, class, number and price per share.
Your company should have a company constitution that describes the general manner of doing business. Things like director and shareholder meetings, the conditions and limitations of share issues, dividends, and so on.
Shareholders are owners of the company because their ownership interests are represented by shares they hold. Because a company is a separate legal entity, the shareholders (the owners) of the company are not liable for the liabilities of the company. They stand to lose only the amount of capital they contributed to the company in the form of shares. This is known as limited liability. This is the most common type of company in Australia.
You are free to sell all or part your shares at any time. Company can issue more shares or buy back shares. It is quite flexible on ownership transfer.
The profit made by the business belongs to the company. The company lodges its own company tax return and is responsible, as a taxable entity, for its own income taxes.
Services we provide
At JH Business Services & Taxation, we have extensive experience with the set-up and administration of Proprietary companies. We can assist you with:
Please click here for our fees & charges for administration and preparation of annual accounts & tax return for company.