Steps to register a company
12 Feb 2020 Company 4 Me
Steps to register a company with Company4Me
This section details how to register a company with us and the things you need to keep in mind.
- Step 1 – Is company structure the correct business structure for my business?
- Step 2 – Select a company name
- Step 3 – Do you need a constitution for your company?
- Step 4 – Become aware of the obligations of a director/secretary/public office
- Step 5 – Get consent from the newly appointed director(s)/secretary/public officer
- Step 6 – Registering your company
- Step 7 – What happens after you register the company..
Step 1 – Is a company right for you?
You need to decide if a registered company suits your needs or if you should use a different business structure.
A company structure has many advantages over other business structures. Key facts to consider before selecting company as your business structure.
- Company’s usually have a higher setup and run cost. ASIC fees and other statutory requirements
- Setting up a registered company in Australia is more complicated that running a Sole Trader business
- The company is owned by the Shareholders
- The appointed Directors are responsible for the business decisions
- Business losses are the responsibility of the registered company which is a separate legal entity
- Company’s pay tax at the company tax rate (30%) which is lower than the higher threshold paid by Sole Traders in the top bracket of personal income tax (45%)
Registering a company with ASIC is not the same as just registering a business name. When you have a company you do not need to register a business name if you will be trading in the company name. On the other hand if you are a sole trader you will need to register a business name. Below table gives you a quick comparison between different business structures.
If you have registered a company you do not need to register a business name separately when you decide to trade in the name of the company. When deciding to choose a name for your company you need to be aware of a few things.
A company’s proposed name must not be same as an existing company or business name
We have a support article that details the ASIC requirements. For further details you can ready the article at https://support.company4me.com.au/article/8-proposed-company-name
A company’s name must display its legal status
- if a company’s shareholders’ liability is limited to the amount of money unpaid for the issued shares, the name has to end with ‘Proprietary Limited’
- if the company’s shareholders’ liability is unlimited, the registered company name has to end with ‘Proprietary’.
When you register a company with Company4Me you will get an option to choose the Legal Element for Proprietary Limited which can be displayed in various forms.
If you want to display a different name (trading name) to the registered company name (legal name) you will need to register a Business Name. In case of Company4Me our legal name is Tax 4 Me Pty Ltd but because we have registered Company4Me as a business name we can use this as our display name.
In cases were you only have one company officer (director/secretary/public officer) you do not need a constitution and will not need to follow the replaceable rules of the Corporation Act.
As soon as you have more than one officer in your company you will be governed by the default replaceable rules of the Corporation Act if you do not have a constitution. When a company has a constitution it is a requirement of the law to keep the constitution on records for easy access by any member of the company or the ATO/ASIC.
A Pty company can not have non employee members greater than 50 and be either:
- company limited by shares, or
- unlimited company with share capital.
A Pty company must not do any business activity that will require any disclosures to investors. A Pty company can offer shares only to members or employees of the company and not to the general public.
As per the corporations Act the Directors/Office holders have the final responsibility to make sure:
- All company details (address, members register etc) are kept up to date with ASIC
- Proper recording keeping and maintaining a company register
- Pay required lodgement/review fees to ASIC as and when due
You can also refer to our support article on Office Holders/Shareholders.
Step 5 – A registered company needs to get officeholders, members and occupiers to sign a consent form
As part of the registration process Company4Me will provide pre filled consent forms on successful registration that will need to be signed and filed in the company binder.
Company4Me is a registered ASIC agent that provides hassle free and secure company registration in real time. You will be able to complete the process in 4 simple online stages.
To get started go to our company registration link- https://company4me.com.au/company-registration/
As soon as you submit your online application the details are sent securely to the ASIC server for approval. Usually within 5 minutes we receive an approval. Once approved:
- We provide you with the ACN (Australian Company Number)
- Confirm registration of your company with ASIC
- Provide you the ASIC certificate of registration
- Provide you a list of all legal documents*. Refer list below
- Give you an option to select a bookkeeping package
- Give you an option to select a domain and website package
- You should get all directors/members to sign the consent forms
- You should get all shareholders to pay the unpaid value of the allocated shares and issue them share certificates
- Register your company with ATO for GST/ABN/FBT etc..
*With each registered company, you will get all the documents listed below in a zip file. The zip archive contains all documents in .docx format, and an all-in-one PDF file with all the documents together (suitable for printing).
- – Form 201
- – Constitution (for companies and superannuation trustees)
- – Occupiers Consent to use Registered Office
- – Consent to Act as Director
- – Consent to Act as Secretary
- – Consent to Act as Public Officer
- – Notice of Appointment of Public Officer
- – Minutes of First Meeting of Members
- – Minutes of First Meeting of Directors
- – Application for Shares
- – Share Certificate
- – Register of Members
- – Register of Directors
- – Allotment Journal
- – Table of Forms & Documents Lodged with ASIC
- – Common Seal Register
- – Register of Debenture Holders
Just like Michael you can start your celebrations!!