Before forming a new company the decision must be made as to what business structure suits best.
The advantages/characteristics of using a company include:
- it is a separate legal entity
- it has shareholders who own the company
- it has a board of directors who manage the company (on behalf of the shareholders)
- it can own property and other assets
- it has perpetual succession
- it can contract in its own right
- it can sue, and be sued.
To establish a new company application must be made to the Australian Securities & Investments Commission.
The process is:
- Complete Form 201 and lodge with ASIC – this can be done manually (in person at an ASIC office, or through the mail) – or electronically by one of many on-line accredited agents
Principal details required are:
- proposed name of company
- state of incorporation
- registered office and principal place of business addresses
- names of directors, company secretary and shareholders
- details of paid up capital and allocation of
- whether a constitution or Replaceable Rules are to be used.
Some of the ‘paperwork’ will need to be signed by het individuals, giving consent, affirming the application and shares, etc.
- Using an agent means that they will also provide all the necessary documentation for the Company Register
Contents of the Register include:
- shareholder minutes/resolutions
- director minutes/resolutions
- share allotment/transfer journals and register
- charges register.
- After registration of the new company various matters need to be attended to, such as:
- hold the first directors’ meeting to deal
with procedural and “housekeeping” matters
- establish the “books” of the company
- issue share certificates
- display the company’s name at the places of business.
*Originally written by Company Secretary, an Australian virtual company secretary service.