{"id":35745,"date":"2020-05-28T12:53:07","date_gmt":"2020-05-28T04:53:07","guid":{"rendered":"https:\/\/zegal.com\/?p=35745"},"modified":"2024-12-27T18:07:19","modified_gmt":"2024-12-27T10:07:19","slug":"company-incorporation-australia","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/company-incorporation-australia\/","title":{"rendered":"Company Incorporation Step by Step: Australia"},"content":{"rendered":"<figure id=\"attachment_35746\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-35746\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-1536x1024.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-2048x1365.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/dan-freeman-7Zb7kUyQg1E-unsplash-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by Dan Freeman on Unsplash<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This article covers what you need to know in order to get your new business registered\u00a0 in Australia. Read on for details on Australia\u2019s requirements, procedures, and the estimated timeline to register a company.\u00a0<\/span><\/p>\n<h4><b>Minimum Setup Requirements to Register a Company in Australia<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">For a proprietary company:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Director (must reside in Australia) &#8211; 1<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shareholders (crowd-sourced funded, majority must reside in Australia) &#8211; 2\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For a public company:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Director (majority must reside in Australia) &#8211; 3\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company Secretary (must reside in Australia) &#8211; 1\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A company director is able to appoint someone else to act as an \u2018alternate director\u2019 for a fixed period of time. The \u2018alternate director\u2019 may have the full rights or selected rights of a director, he\/she can also act as the \u2018alternate director\u2019 for more than one director.<\/span><\/p>\n<p><a href=\"https:\/\/zegal.com\/company-incorporation\/\">Get Started: Company Incorporation Documents<\/a><\/p>\n<h4><b>Registration Process\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The Australian Securities and Investment Commission (ASIC) oversees the business incorporation process in compliance with the Australian Government. The Business Registration Service has streamlined and simplified the\u00a0 incorporation process so it&#8217;s a breeze to do <\/span><span style=\"font-weight: 400;\">online <a href=\"https:\/\/asic.gov.au\/for-business\/registering-a-company\/steps-to-register-a-company\/\">here<\/a>.\u00a0<\/span><\/p>\n<h6><span style=\"font-weight: 400;\">*Every registered company in Australia must have an <\/span><b>Australian Business Number (ABN) &#8211; <\/b><span style=\"font-weight: 400;\">a unique 11 digit number that is the official and legal identification for your business to the public. (See more below)<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">The Business Registration Services is a one-stop platform for anybody keen on starting their own business in Australia. The following are the required documents that must be applied and approved in order for the company to be registered.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Australian Business Number (ABN)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business Name<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tax Registration<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Licences and Permits<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company Governance Structure\u00a0<\/span><\/li>\n<\/ul>\n<h4><b>Step 1: <\/b>Decide on your business structure\u00a0<\/h4>\n<p><span style=\"font-weight: 400;\">The first step after deciding to start your own business is to decide and declare the type of business structure that is the best fit for your business. The most common types of business structures are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sole Trader<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Partnership<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Joint venture<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Trust<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">More information on the different types of business structure in Australia can be found<\/span><a href=\"https:\/\/asic.gov.au\/for-business\/small-business\/starting-a-small-business\/setting-up-a-business-structure\/\"><span style=\"font-weight: 400;\"> here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4><b>Step 2: <\/b>Establish internal governance structure\u00a0<\/h4>\n<p><span style=\"font-weight: 400;\">Having a good and strong internal governance structure helps to minimise the risks and streamline the process for making business decisions. However, proprietary companies <strong>consisting of only one director and shareholder need not establish an internal governance structure.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">The internal governance structure must encompass the following processes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Procedures for director and member meetings<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Share structure &amp; transfers\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Director appointment and removal\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The business can be governed by either replaceable rules or its own constitution. It can also be a mixture of both.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Replaceable rules are a basic set of rules that can be found in the Corporations Act and is an easier method to govern your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A written<a href=\"https:\/\/zegal.com\/blog\/post\/how-do-i-write-my-company-constitution\/\"> constitution<\/a> works hand in hand with a <a href=\"https:\/\/zegal.com\/shareholders-agreement\/\">shareholders agreement<\/a>.<\/span><\/p>\n<h4><b>Step 3:<\/b> Appointment of key officeholders\u00a0<\/h4>\n<p><span style=\"font-weight: 400;\">Officeholders must be made aware of their legal responsibilities and duties when being appointed officially into their roles. Therefore, it is important to obtain written consent from the parties that have been appointed to office positions. Although the consent is not officially required as a document by ASIC, it is important to have it in the company\u2019s records.\u00a0<\/span><\/p>\n<h4><b>Step 4:<\/b> Registering your business with the ASIC<\/h4>\n<p><span style=\"font-weight: 400;\">Registering the company will entail submission of a completed <\/span><a href=\"https:\/\/asic.gov.au\/regulatory-resources\/forms\/forms-folder\/201-application-for-registration-as-an-australian-company\/\"><span style=\"font-weight: 400;\">ASIC Form 201 Application <\/span><\/a><span style=\"font-weight: 400;\">and the payment of a registration fee (dependent on the type of business structure) of between <\/span><b>AUD$408 &#8211; AUD$495.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Once the application has been approved, ASIC will issue the ABN and a certificate of registration which must be displayed at all times at the place of business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most important identity for a company in Australia is the <\/span><b>Australian Business Number (ABN)<\/b><span style=\"font-weight: 400;\">. Having an ABN makes your business identifiable on its own and is used for official and legal purposes as well. Application for an ABN is free for everyone, but not all are entitled to an ABN.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A company requires an ABN if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The company is conducting\/ starting a business in Australia\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Producing supplies connected with Australia\u2019s indirect tax zone\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A Corporations Act company<\/span><\/li>\n<\/ul>\n<h5><b>Reserving a business name\u00a0<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The business name for the company must follow a fixed set of requirements in order for it to qualify as a company name. You can check if the <\/span><b>business name<\/b><span style=\"font-weight: 400;\"> intended has been registered already by searching it on the<\/span><a href=\"https:\/\/connectonline.asic.gov.au\/RegistrySearch\/faces\/landing\/bn\/SearchBnRegisters.jspx?_adf.ctrl-state=192s4ltxez_4\"><span style=\"font-weight: 400;\"> Australian Securities &amp; Investments Commission (ASIC) <\/span><\/a><span style=\"font-weight: 400;\">website. The cost of registering a business name is <\/span><b>AUD$36<\/b><span style=\"font-weight: 400;\"> (for 1 year) or <\/span><b>AUD$85<\/b><span style=\"font-weight: 400;\"> (for 3 years). The online application process takes roughly 12 minutes to complete, and the approval, if successful, happens within <\/span><b>2-5 working days<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12pt;\">*Note: it is optional to reserve and select a business name. Businesses in Australia are officially identified by their Australian Business Number (ABN).<\/span><\/p>\n<h4><b>Step 5: Tax registration and compliance<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Businesses must also make sure they are fully compliant with the Australian taxation payment system. Therefore, the business must have the required tax registrations like a Tax File Number and the required exemption documents (if needed).\u00a0<\/span><\/p>\n<h5><b>Registering a foreign company in Australia<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">According to the Corporations Act, a company is listed as a \u2018foreign company\u2019 when it is a company registered outside of Australia. In this case, the company must be registered with ASIC in order to practice business in Australia.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The steps to register are generally the same as for a local company. However, there are additional documents for registration.\u00a0<\/span><\/p>\n<p><strong>Documents required:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/asic.gov.au\/regulatory-resources\/forms\/forms-folder\/402-application-for-registration-as-a-foreign-company\/\">Form 402 Application<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Present certified copy of entity\u2019s certificate of incorporation\/registration<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Present certified copy of the entity\u2019s constitution<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Memorandum of appointment of the local agent or power of attorney (in favour of the local agent) &#8211; <a href=\"https:\/\/asic.gov.au\/regulatory-resources\/forms\/forms-folder\/418-memorandum-of-appointment-of-local-agent\/\">Form 418\u00a0<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/zegal.com\/memorandum-of-understanding-letter-of-intent\/\">Memorandum<\/a> stating the powers and rights of certain directors\u00a0<\/span><\/li>\n<\/ul>\n<h5><b>Accounting<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">All transactions relating to the business\u2019s tax and superannuation issues, as well as tax returns and reports, must be kept in the company\u2019s records. For companies with <strong>more than AUD$10 million annual turnover, all accounts and returns must be submitted by 15th January<\/strong> after the tax year ends. For companies with<strong> less than AUD$10 million annual turnover, all accounts and returns must be submitted by 28th February<\/strong> after the tax year ends.<\/span><\/p>\n<h5><b>Annual General Meeting<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">All companies must convene its annual general meeting within 18 months of initial incorporation and subsequently, within five months of the end of every financial year.\u00a0<\/span><\/p>\n<p><b>Corporate Tax<\/b><\/p>\n<p><span style=\"font-weight: 400;\">All \u201csmall business\u201d companies are required to pay a corporate tax rate of <strong>27.5%, unless their annual turnover does not hit the minimum of AUD$50 million.<\/strong> All other companies are subjected to the<strong> full 30%<\/strong> on their taxable income.<\/span><\/p>\n<h5><b>Annual filing<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">All businesses operating in Australia must submit financial reports with ASIC and this is done usually towards the end of the financial year. Annual financial reports must be submitted for auditing as well.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">The opinions expressed in the column above represent the author\u2019s own.<\/span><\/i><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/p>\n<p>MORE IN THIS SERIES: Company Incorporation: <a href=\"https:\/\/zegal.com\/blog\/post\/how-to-start-a-business-in-hong-kong\/\">Hong Kong<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">Singapore<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-japan\">Japan<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-new-zealand\/\">New Zealand<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-australia\/\">Australia<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-taiwan\/\">Taiwan, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-macau\/\">Macau<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-china\/\">China<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-philippines\/\">Philippines<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/incorporation-british-virgin-islands\/\">BVI<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-vietnam\/\">Vietnam<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-thailand\">Thailand<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-indonesia\/\">\u00a0Indonesia<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-cayman-islands\/\">Cayman Islands<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-united-kingdom\">United Kingdom<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/legalguide\/incorporate-your-business\/\"><span style=\"font-weight: 400;\">READ MORE: Documents required when incorporating your business<\/span><\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">FURTHER READING: Company Incorporation Step by Step: Singapore<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; This article covers what you need to know in order to get your new business registered\u00a0 in Australia. Read on for details on Australia\u2019s requirements, procedures, and the estimated timeline to register a company.\u00a0 Minimum Setup Requirements to Register a Company in Australia For a proprietary company: Director (must reside in Australia) &#8211; 1 [&hellip;]<\/p>\n","protected":false},"author":96,"featured_media":35746,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[133],"tags":[1812,25,10307],"usecases":[],"businesstypes":[],"country":[13735],"class_list":["post-35745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","tag-australia","tag-company-incorporation","tag-z-syndicate","country-australia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Company Incorporation Step by Step: Australia | Zegal Singapore<\/title>\n<meta name=\"description\" content=\"Simple instructions to set up your business in Australia with all the agreements and forms to get your start up on the right track for success.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-sg\/wp-json\/wp\/v2\/posts\/35745\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Company Incorporation Step by Step: Australia\" \/>\n<meta property=\"og:description\" content=\"Simple instructions to set up your business in Australia with all the agreements and forms to get your start up on the right track for 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