It is important to register your business, especially if you are thinking of expanding domestically or internationally. Read on to register a company in Australia to know more.
The benefits of registering a company go beyond just being able to lawfully operate as an official entity, here are some of the benefits that you could experience by doing so:
Secured Legal Status for Your Company
This will mean that customers and suppliers can trust you due to having proof that your company exists. Also it ensures people know where they stand with regards to paying out money they owe you or vice versa. Without this sort of status companies would most likely not be able to enter into contractual agreements with one another.
Precedence of Ownership
When you register a company, it has a legal status. This will give your business a precedence over other businesses that do not have this protected status. For example, if two companies claim to own the same trademark then the first one to file registration will be given priority over later filers even if they applied before them. In addition, if any party tries to use this trademark in relation with their company then the owner can sue for damages to their business as well as preventing this particular party from using it again.
Ability to Enter into Contracts
One of the primary reasons behind registering a business is so you might open up a bank account enter into contractual agreements without much trouble. Having a registered legal status makes it easier to do business with other people or companies as this allows you to use the company name on contracts and official documents.
Tax Deductions and Tax Exemptions
Some tax deductions will not be available if your company is not officially registered. In addition, some small business owners will qualify for tax exemptions depending on their annual revenue. Although registration may seem like an effort out of proportion with its returns, the benefits make it worthwhile in the long run for those looking to establish themselves as a professional operator in their chosen field. This is especially true if they are considering expanding into new markets down the road or launching a public offering.
There are various steps that need to be followed when registering a company, including the following:
Selecting a name for your business.
You will need to check whether or not your chosen name is available by doing a search with ASIC (Australian Securities & Investments Commission). If it is taken you would then need to choose another name.
Prepare an incorporation form which can be obtained from any legal stationery store.
This form needs to include the following information:
- Name of company
- Incorporating address
- Legal structure
There are several choices here including Pty Ltd or Proprietary Limited Company , CC etc…
- Number and Class of shares Directors’ details
- Business bank account details
- Details about financial support for at least three months
- Resolutions regarding how director’s sign contracts on behalf of the company
- Resolution regarding how the secretary signs contracts on behalf of the company.
After submitting your incorporation form you will need to pay a filing fee which is normally around $400, however, it may differ depending on your state or territory. After paying this fee you should expect to receive an email confirmation along with a printed copy of the certificate of registration within 24 hours after submission, although this could take up to four business days for processing. This certificate will contain details including your registered name and ACN (Australian Company Number).
Australian Company Number
Your ACN is important because it acts as a unique identifier that identifies legal entities operating in Australia, also known as Australian Registered Body Numbers abbreviated ARBN’s. You can search for any Australian entity here. This is useful if your company operates domestically or internationally to identify your business when applying for government licenses which are required if you intend to do certain types of activities.
For example, if you intend to distribute alcohol in Australia then you will need a license from the relevant state or territory authority before doing so.
Australian Business Number
Registering for an ABN (Australian Business Number) is also important because this number will be needed when filing taxes which can be done by registering for an e-tax account through the ATO’s official website. This is useful given those Australian companies operating domestically and having a turnover of less than $75000 per year don’t pay income tax on their revenue. However, they still have to file their financial statements with ASIC annually.