A holding company in Australia is incorporated as one of the legal entities available in this country (usually, a limited liability company or a joint stock company), with the purpose of owning shares in other businesses.
The purpose of the holding is not to set up management or business strategies for the respective businesses, but to exert control over these companies (which is established by the fact that the holding represents the main investor of such businesses).
If you want to open a holding company in Australia, our Australian law firm remains at your service with professional company registration services.
How can investors open a holding company in Australia?
The process of starting a business as a holding follows the same steps that are established for any other corporate structure that can be set up in this country. First of all, investors should decide on the legal entity they want for their holding.
Some of the main aspects investors should be aware of are presented below:
- the company needs to have at least 1 shareholder (any nationality is accepted) and 1 director (the person must be a resident in Australia);
- legal matters concerning the activity of a holding are prescribed by the Section 46 of the Corporations Act 2001;
- after the incorporation, any change regarding the company must be reported to the Australian Securities &Investment Commission (ASIC) in a period of 28 days;
- if the holding will be registered as a limited liability company, it is compulsory to register for VAT if the company exceeds a turnover of $75,000.
The holding must be incorporated by completing other basic registration steps as well, which can be detailed by our lawyers in Sydney. For instance, it is necessary to set up a registered address, as well as to open a corporate bank account.
Our Australian law firm can provide full legal representation in the process of opening a corporate bank account at a local commercial bank that the investors prefer. Our team can represent clients in this procedure through the power of attorney.
The power of attorney is the legal document that grants the right of legal representation to our Australian lawyers in any other registration procedures.
What are the advantages of a holding company in Australia?
A holding can offer many benefits to a group of companies, centralized under one single structure. It can be used as a way to protect corporate assets and to centralize the ownership and the control of the said companies.
Overall, this business model can have a positive impact on the performance of the group of companies operating under the holding. The holding can provide many benefits when it comes to the taxation of the overall group of businesses.
What are the reporting obligations in Australia?
All companies have various reporting obligations to comply with and these are established based on the size of the company and its type. The holding company is also obliged to report to ASIC on many corporate matters.
For instance, any change regarding the structure, the management, etc., of the business, has to be reported to the institution. The company must also complete financial reports and submit them to ASIC in accordance with the legal procedures applicable here.
Our attorneys in Australia can provide information on the financial documents that must be submitted by the holding, as well as on the accounting periods when these documents must be submitted.
The same institution must be informed when and if the company will cease its activities. Please mind that the holding is required to submit financial documents for the entire group of companies.
We invite foreign investors to contact our law firm in Australia for more information concerning the registration of a holding.