The process of company registration in Australia entails a set of mandatory procedures that are imposed under the local law. In the early stages of the process, the company’s founders need to select a suitable legal entity, assign to it a trading name and obtain an Australian Company Number (ACN), steps on which our team of lawyers offers full legal assistance.
The steps we have mentioned above are conducted through the same institution, which, in this case, is the Australian Securities &Investments Commission (ASIC). The institution acts as a Commercial Registry, but it is also in charge of other legal matters, such as consumer assistance in banking, loans, insurance and other financial activities.
In this article, however, our attorneys will reflect only the procedures concerning business registration in Australia (the obligations investors have upon the incorporation so that their company can be recognized as a newly established business in this country).
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Register a company in Australia with ASIC
Once the investors (local or foreigners) have decided on the business form they want to incorporate, it is legally required to register the structure with ASIC. The procedure is completed with the Australian Companies Register, that operates under the supervision of ASIC. In order to register the legal entity, investors must provide details on the following (under the form of various documents):
- company address – 2 addresses are required, the registered office address and the principal place of business address;
- statutory documents – the legal entity may use the replaceable rules as per the Corporations Act 2001 or set up its own constitution (a combination of the 2 is also possible);
- shareholding structure – in the case the company has more than 20 members, it is required to offer the details of the first 20 members (based on the shares owned);
- proof of paying the processing fee – in order to register a business in Australia, investors need to pay $503 or $611, depending on the company type selected.
Among others, it is also important to provide a trading name, but this step is not mandatory, as, in Australia, the registration of a legal entity and the registration of a trading name are 2 different procedures.
It must be noted that the registration of the new business form is completed through the Business Registration Services, while reserving a trade name can be done through a separate service, ASIC Connect.
Reserve a company name in Australia
The company name (or trade name) is another mandatory procedure for company registration in Australia that can be done independently from the registration of the legal entity (through the ASIC Connect service) or it can be completed as a part of the formalities for the registration of the business form.
For instance, those who register the legal entity with ASIC, who have not yet secured a trade name, will be able to use the Australian Company Number (ACN) that will be provided by ASIC during the online registration as a trade name.
The registration of the company name is required for any type of entity that does not develop business activities in Australia under their own personal name (the latter situation appears in the case of those who register a company in Australia as sole traders).
Main responsibilities of ASIC
In the beginning of this article, our lawyers have presented a few of the responsibilities carried out by ASIC. As we have mentioned, the institution mainly handles matters related to the incorporation and functioning of local legal entities, such as:
- registration of a legal entity;
- registration and renewal of a business name;
- maintenance of the ASIC register of all companies, organizations, etc.;
- customer support for interested parties.
We invite you to contact our law firm for further information on other important matters pertaining to company registration in Australia.