Here are some tips for setting up your Australian company.
Are you considering setting up an Australian company ?
Congratulations! Starting out is exciting and it does not have to be complicated or stressful.
In this article, I am going to share some tips to help you set up your Australian company.
You should know upfront that you have options; that is, you can either set up a company online using business to consumer software or through a lawyer (who may also use software). It’s really up to you. I am not going to go through the pro's and con's of each option.
It’s a good idea to have a few options for your company name prepared.
Options are especially important if you are setting up your company through a lawyer or accountant.
I recommend (3) in case some of your options are no longer available. Your company name needs to be unique.
The correct order of registration is to set up the Australian Company Number (ACN) before the Australian Business Number (ABN).
Your ‘trading-as’ name otherwise known as the ‘doing-business-as’ name if you are based in or familiar with the U.S terminology, can be different to your company name. This may take some of the pressure off finding the perfect company name. That is, you can set ups your company as ABC Pty Ltd and then set up your trading name later on.
Simply put, your trading name will appear on your blog, your shop front window or the branding of your tangible products.
Feeling stuck ? you can always find some online inspiration for your business name.
Be sure to check out this Inc.com article “How to choose the best name for your business”
You will not be able to use an existing ‘trading as’ name.
Your lawyer may also check other resources for your domain name availability.
They may also check if there are other international operators using your name and their industry and let you know about these and any risks.
Namechk is one of many services available to help you check your name availability before you give your company name list to a lawyer.
You enter your chosen company name up top and then Namechk runs searches for your company name.
Here’s what the main namechk screen looks like:
Check that you have the licences you need to trade; and
Check that your preferred domain name is available.
Importantly, you will need your ABN to buy a dot com.au domain name and the addresses of your proposed business name and an email address.
You can register your business name either for 1 or 3 years, a different fee applies for each term.
As soon as your business name appears on the Australian Business Register you can start to trade.
You can search either by Australian Business Number, Australian Company Number or business name as shown in the screen shot below.
An important step is for you to nominate office holders for your company.
Company officeholders include company directors and secretaries.
For a proprietary (privately held company not listed publicly), you will need a minimum of one director and that director must live in Australia, be at least 18 years old and have provided written consent to be a director - you will need to keep their consent on file.
What if you live overseas and want to set up an Australian company ?
That’s ok, you can still set up the company as long as you appoint another director that lives in Australia.
You can make use of an agency that can help you to find an Australian resident director for a fee. Healy Consultants Group is one of those organisations.
If one of your directors is unavailable, you can appoint a director to act as an alternate director for a set period of time.
The Australian Institute of Company Directors has some useful educational resources for directors.
Does your company need a secretary ?
A proprietary company does not need a secretary, but if you have one, then then they must also live in Australia.
It’s important that you meet the minimum number of office holders to avoid any ASIC penalties which can involve a penalty notice and the company being prosecuted.
In addition to your company name and business name, you will also need to to have the information below handy to set up your company:
If you provide a tax file number, proof identity documents are not required.
If you are a non-resident and do not have a tax file number, you will need to provide proof of identity documents. The Australian Business Register has more information on the proof of identity required.
I love simplifying processes for entrepreneurs so they can operate successfully in Australia and abroad.
Do you have any tips or experiences to share about setting up your company ? be sure to share them in the comments below.