Setting up a company in Australia has never been easier. In the recent past you would have to hand over well in excess of a thousand dollars to an accountant/solicitor and wait days. Alternatively you would have to buy a ‘shelf company’ (a shelf company was pre incorporated to get around the lengthy registration period and left ‘on the shelf’ until someone needed one, the accountant/solicitor etc would then use this ‘off the shelf’ company for their client). With the advent of ECR (Electronic Company Registration) this has all changed, making company registration nearly instantaneous and available 24/7. The proliferation of online sites offering company registration services has made the cost of setting up a company plummet. eCompanies charge just $50 on top of the ASIC fee of $426 and can have your company setup in minutes.
For this service fee you get the convenience of setting up a company from your own home, as well as having all the associated legal documentation required to be compliant with the Corporations Act 2001 automatically prepared for you. You could register directly with ASIC by going into their office or posting your application off with a cheque but you don’t get this documentation. By missing out on this documentation you will be immediately in violation of the Corporations Act 2001. This is a criminal offence and could mean gaol time of 3 months.
By focusing specifically on proprietary limited companies, which account for 99% of all companies registered in Australia, our process for setting up a company is much easier and faster to complete, saving you time and money.
Things to consider when setting up a company:
- Choosing a company name
- Decide who the company officeholders are.
- Decide upon the ownership/share structure
Once you have decided these three things you have all the information you need, and are ready to use a company registrationÂ site, like eCompanies, for setting up your company. Just remember, if you are uncertain about any aspect of your new company always consult a solicitor or accountant for professional advice. A half hour is a small price to pay for peace of mind and will most likely end up saving you money in the long run.