6.What are the steps involved in registering an Australian company?
In order to create a company, you must go through the process of 'registration', which is set out in Chapter 2A of the Corporations Act. This process used to be known as 'incorporation' and involves registering the company with the Australian Securities and Investments Commission (ASIC).
The simplest and most cost-effective way to register a company is to used an ASIC-registered agent, such as expresscompany.com.au. As a registered agent, our server is seamlessly linked to ASIC's databases to provide the convenience of being able to complete the registration of a company 24-hours per day, seven days per week from anywhere in the world.
The registration process involves several simple steps. The first is to determine the type of company required: private (proprietary) or public. You then need to decide on a company name. If you don't nominate a name, the company will be known by its Australian Company Number (ACN).
Directors, officeholders and shareholders will also need to be chosen and the individual's formal consent given to fill each position. ASIC also required you to nominate a principal place of residence and a registered office for the company.
You can then undertake a simple, online application process to complete the company's registration. The information that will need to be provided as part of the registration process includes: the identity of any ultimate holding company; names, addresses, places and dates of birth and any former names of each proposed director, secretary (if any) and shareholder.
Proprietary companies are not required to have a secretary but they need at least one director and one shareholder. The sole director can also be the shareholder and secretary. If a shareholder is a company, the ACN/ARBN/ABN must be provided.
The registration process also involves providing details of shares to be issued to shareholders, including how many of what type of share and whether they are fully paid. If the company is limited by guarantee, ASIC will need written evidence of the amount of the guarantee each member has agreed to.
Once the company is registered, it has the same legal powers as an individual. ASIC will give it an Australian Company Number or ACN (a unique nine digit identifying number). A new proprietary company which is limited by shares must have Pty Ptd or Proprietary Limited as part of its name.
