Entrepreneurship in Australia is a very enjoyable and a successful adventure. Private Limited Company is one of the most common business structures. A private limited company has many advantages for entrepreneurs amongst which are limited liability and financing opportunities. In this article, I will lead you to the process of registering a private limited company in Australia, describe the advantages of the private limited company structure, and mention the required documents you will need to set up your private limited company.
Registering a Private Limited Company in Australia
Registering a private limited company in Australia is rather a simplified way of doing it. The first action in this regard, is choosing a special name for your company and finding out whether it exists already. To give your company a name, you’ll need to register with the Australian Securities and Investments Commission (ASIC). This could be done through either online or by paper submission.
Registering the company name is the first step that you will need to take, and after that, you will need to write the company’s constitution that spells out the guidelines and regulations of the company’s operations. The Constitution must be consistent with the Corporations Act 2001 and it may comprise the company’s objectives, share capital of the company, and the rights and responsibilities of the shareholders of the company. Seeking legal opinions at the drafting stage is recommendable to avoid facing legal confusion.
Once the constitution is in place the director and the secretary of the company should be elected. The director must be at least 18 years old and a resident of Australia; for the company secretary, the age is not an issue if an individual above 18 is chosen. Such appointments should be done in writing and filed with the ASIC within 28 days of their appointment.
Benefits of Opening a Private Limited Company in Australia
Establishment of a private limited company in Australia provides numerous benefits for entrepreneurs. A significant advantage lies in the limited liability protection. Your liability as a shareholder of a private limited liability company is limited to the extent of the amount of unpaid shares you hold. This will result in your personal assets being secured in the occurrence of any legal action or financial problems faced by the company.
The second advantage is the facility to attract funds. Companies limited by shares can issue shares to the public to raise funds from investors. This enables a higher degree of freedom in accessing capital than for other business forms. Similarly, a private limited company can also entice investors with employee share schemes that in turn motivate and retain talented staff.
In addition, a private limited company is characterized by a legal everlasting existence. This indicates that the company can remain operating when shareholders or directors change. This provides a stable and lasting source of cash for the company, making it attractive to intending entrepreneurs seeking a long-term business proposition.
Documents Required to Setup a Private Limited Company in Australia
To incorporate a private limited company in Australia, certain documents are needed. First, your application form for company registration should be ready. The form is accessible on the website of the ASIC or through a registered agent. The application form will ask for details like the name of the company, the address, directors, shareholders, and the share structure.
Moreover, you must also have a duplicate of the company’s constitution, as was earlier stated. This document must comply with the requirements of the Corporations Act 2001, and at least one director and one shareholder should sign it.
Moreover, you should provide the directors’ and shareholders’ identification documents. This could be achieved by providing a certified copy of their passports, driver’s licenses or other identification documents.
In the end, you may be required to attach other documents depending on your actual situation. The fact that your company has foreign shareholders or directors will require you to furnish their residency status proof.
Conclusion
Opening a private limited company in Australia is a sound decision for those intending to launch a business as it gives a limited liability and the option of fundraising. You will need to take proper measures, and provide the necessary documents to create a private limited company yourself and you will be able to enjoy all the benefits that it offers after all. Bear in mind though that one still needs to consult an attorney to stay compliant with the law and to decide things carefully through the entire process. Lastly, take the first step to start your entrepreneurship journey in Australia today and incorporate your private company!
If you want to start a private limited company in Australia, you should find a qualified consultant like OnDemand International and get registered with the company registry office. The sky’s the limit, and you’re bound to hit the jackpot!