How to set up a company

How to set up a company

The steps for forming a company are listed below. It can be confusing, so you should see an Accounting Services who can explain everything to you and point you in the direction of what will be most beneficial for you.

Choose a name for the business

Any name you choose for the business can be used, but it cannot be the same as or confusingly similar to the name of another lawfully operating business or company. The Name Availability feature on the ASIC website lets you check for availability. If it is identical to another company name or business name, it may require manual processing with ASIC after filing the relevant papers. See the ASIC website for more information on company names.

Select the Company’s Directors, Officers, and Location

The Corporations Act of 2001 requires a company to perform a variety of tasks. Directors and stockholders are the first two roles that most people would be familiar with. Simply said, the company’s directors manage it, while its shareholders are its legal owners. Directors may also be shareholders of the corporation and vice versa.

The remaining two jobs, corporate secretary and public officer are less widely known. Simply said, the public office represents the company before the Australia Tax Office, while the secretary is in charge of ensuring proper corporate compliance and governance.

Last but not least, you need to decide where to locate your company. Two locations will require detailed directions from you. The first is a Registered Office, which serves as the company’s registered address and is where all correspondence and paperwork related to the company should be sent. It is where the company will get notices and must be accessible during business hours. The second is the main office, which should be fairly self-explanatory but also serves as the location for decision-making and bookkeeping for the business.

Draft of the Company Constitution

Once all the significant stakeholders have been identified, the next stage is to create a business constitution. A lawyer with experience in corporate law can handle this.

Lodge Form 201 of ASIC

As ASIC oversees business regulation in Australia, you must submit Form 201 to them in order to launch a new company. You can complete this on your own using the government-provided Business Registration Service, but we suggest speaking with an accountant to ensure it is completed correctly. It can be time-consuming and expensive to edit a form after you’ve submitted it to ASIC.

Get a Director Identification Number by applying

Directors of Australian corporations must now apply for a Director Identification number. Each corporation will utilise a unique number called a director ID, which will be kept on file forever. You must ask for your Director ID on your own behalf.

The easiest way to get your director ID is through the online application process with Australian Business Registry Services (ABRS).

Request an ABN and TFN

Once the company has been formed, ASIC will issue an Australian Company Number (ACN). If you wish to run a business through the company, you must apply for an Australian Business Number (ABN) and a Tax File Number (TFN).

Typically, an accountant completes these applications and electronically submits them through the Australian Business Register (ABR). If the information provided by the executives and shareholders is valid and full, the ABN and TFN should be issued right soon.

Create a business bank account

Now that the business is registered and set up, you can open a bank account. The bank account must bear the company’s name.

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