Company Registration in Australia
A number of business structures are available in Australia and each has its own regulations. A number of important factors have to be taken care of by the investors before planning company registration in Australia. It is essential for the business owners to select amongst the new company, a foreign company or acquiring an existing company.
How to register a company in Australia?
- Company name – Before applying for registration of a company in Australia, it is important to check for the availability of the proposed name. It is essential that you select a simple and unique name for your company which is not abusive and does not have any spelling mistakes.A proprietary company should necessarily have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its name. The company can use the Australian Company Number (ACN) given to the company as their name. ACN is a unique number which is given to a company by ASIC.
- Filing the application form – The next step involves filing the ASIC Application Form 201(Application for Registration as an Australian Company) in all respects. The form once duly filled has to be submitted to the Australian Securities and Investments Commission (ASIC) for the registration of the company.
- Each director and shareholder of the company must give their consent in writing to become the director and shareholder of the company.
- It is mandatory to have one director and one company secretary (If appointed) as Australian citizens.
- Depending upon the business and location of the company, the company must comply with the respective taxation requirements.
- A certificate of incorporation is issued by ASIC upon incorporation, which is an evidence that the company has been incorporated on and from the date of issuing the certificate.
Benefits of incorporating a company in Australia
Lower tax rates – Small Proprietary Limited Companies pay a corporate tax of 27.5%, which is considerably lower than the highest tax rate for individuals, which currently stands at 49 percent at the highest bracket. Thus, conducting business through a private limited company enables you to reduce your firm’s overall tax bill in Australia.
Access to the Australian Market – Incorporating a company in Australia allows you to take advantage of Australia’s large, mixed-market economy. With a 24.6 million population and a GDP per capita of US$53,799.94 as of 2019, the country offers some of the most diverse and lucrative market opportunities in the world. In addition, operating in Australia allows you to take advantage of the numerous free trade agreements, offering truly enormous potential as a foreign investor, with access to Europe, Asia, and America.
Anonymity – One of the best advantages of incorporating a private limited company in Australia is that under Chapter 6D of the Corporations Act 2001, the company is not required to disclose its investors or shareholders. As a business owner, this allows for greater levels of anonymity when operating a business. As regulatory burden is much lower you are able to conduct business freely and without the threat of competition stealing your customers.