Do I need to register a business name?
Business Structures

Do I need to register a business name?

Do I need to register a business name?

Updated: 2 December 2019

Here’s a guide for whether you need to register your business name.

When to register your business name

You’ll need to register your business name if its a name other than your legal entity name.

So what’s a legal entity name?

A legal entity name is simply the name that you’d use on your contracts, registrations or leases. 

Your legal name can be different than your business name. 

For example if you have set up a company called Example Pty Ltd but you are using the business name Bob’s Car Repairs, you’ll need to register the business name Bob’s Car Repairs.

What about unregistered trading names?

A trading name is an unregistered name that businesses could use before the introduction of the National Business Names Register on 28 May 2012. 

Importantly, a trading name is not a registered business name. 

If you want to use your trading name after October 2023, you’ll need to register it. 

When you won’t need to register your business name

You won’t need to register your business name in these cases: 

  • If April Anderson operates a sole trader skin care business and using her own name to operate the business, then there’s no need to register the business name. 

  • If you have 2 partners named Chris Christy and James June operating a partnership using their full names, they don’t need to register their business names. 

National registration

The great news is that your registration operates statewide in Australia so you won’t need to register your business name in each state. 

Protecting your business name

To protect your business name, you may want to consider a trademark because simply registering your business name does not provide you with protection from other businesses using a similar trading name. 

I wish you every success in your ventures!


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Should I change from sole trader to company?
Business Structures

Should I change from sole trader to company?

Should I change from sole trader to company?

Updated: 2 December 2019

Below is a useful guide for those of you considering changing your business structure from sole trader to company.  

Sole trader pros and cons

Sole trader pros

The sole trader structure is attractive because it's easy to setup. 

Also, there aren’t many costs to maintain it. 

And, you don’t need to pay an annual fee to keep up a sole trader structure. 

In fact, your only fee will be a business name registration fee if you want to trade using a business name other than your own name. 

Sole trader cons

The two main cons are tax and legal. 

As a sole trader, you’ll pay tax as an individual which can get expensive as your revenue increases. The tax rates for a sole trader can be less attractive than an Australian company. 

Also, you are personally liable if something goes wrong in your business.

Personal liability means that if your customer has a problem with what you’ve delivered, they’ll be suing you personally.

This is not the case with a company structure. We'll discuss that structure next.

Company pros and cons

Company pros

Setting up as a company is a good idea if you plan on bringing investors on board. You can allocate shares to the investors. 

Also, you’ll pay tax at the company tax rate, at the time of writing, for a company with a turnover of less than $25m the tax rate is 27.5%, which can be less than the individual tax rate.

Now,  you also have the benefit of limited liability. In simple terms, this means that if something goes wrong and your customers want to sue you, your company will be liable up to the value of the company assets. Unlike the sole trader, you are not personally liable. 

In fact, your company has its own legal personality. Your company can sue and be sued, own property and owe debts. Your company is separate to you. You are generally not personally liable for company debts. 

Company cons

So what are the cons of setting up a company, if any?

Relative to the sole trader, a company is expensive to maintain, you'll need to prepare a company tax return (separate to any personal tax return you may already have to prepare) and you'll also need to pay the ASIC renewal fee which at the time writing is around $300 per year.

Change process - sole trader to company

To change from a sole trader structure to a company structure, you’ll need to lodge an application for registration as a company (form 201) and apply for a new ABN. 

And no, you won’t be able to re-use your existing ABN. This is a common question.

Your sole trader ABN will need to be cancelled because you’ll get a new one when you register for a company. 

Your company number and your ABN will have the same last 9 digits and  your ABN will have an extra 2 digits in front (11 digits in total). 

Cost of changeover from sole trader to company structure

To change from a sole trader to a company structure, you’ll need to pay the ASIC fee. At the time of writing, this fee is about $500. If you have a professional setup your company, your registration fee can range anywhere from $500 to $3,000.

It's a good idea to make sure that the professional setting up your company clearly explains if their service fee includes the ASIC registration fee or if its separate. 

And each year, you’ll need to pay an ASIC renewal fee which is currently about $300 per year. 

Also, you’ll have company tax costs. These include lodging a Business Activity Statement (BAS), which you can lodge either quarterly, bi-annually or annually. Many small businesses lodge quarterly for cash flow reasons, but you should get some advice for what best suits your business. 

Finally, your annual tax return can range anywhere from $2,000 upwards. 

When to change over from sole trader to company

There are tax and legal effects for your changeover.

Now, while you can change your structure anytime but its best to choose your timing based on your accountant’s and your lawyer's advice. 

Also, its worthwhile checking any existing supply or lease contracts for any approval required for a change in business structure before you make the change.

Contracts

Your contracts may need to be changed across your business. For example, supplier contracts, employment agreements and leases because you'll be entering those agreements as the company and not yourself personally as a sole trader would.

As always, get advice if you are in doubt. 

I wish you every success in your ventures!


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Business Structures

Registering a business name in Australia

Registering a business name in Australia

Updated: 3 December 2019

Your business name is the name you call your business when you carry on your business in Australia.

And it’s the name that appears on your website or your shop front.

You’ll need to register a business name if you run your business under a name other than your own.

Australian Securities and Investment Commission

You’ll register your business name with ASIC. And this step allows you to use your business name in any state or territory in Australia.

Business name vs company

And a business name is just that, it does not have its own legal personality and it's not a company.

On the other hand, a company is a separate legal entity. I wrote about this here. 

Intellectual property protection

Registering a business name does not provide you with intellectual property protection but it is mandatory.

You can apply for a trademark if you want to protect your business name on the IP Australia website. 

Business name renewal

Finally, you’ll need to renew your business name either yearly or every 3 years.

Questions? Comments? Leave them below.

I wish you every success in your ventures!


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Legal status of a company vs a business name in Australia
Business Structures

Legal status of a company vs a business name in Australia

Photo by Henrique Félix on Unsplash

Legal status of a company vs a business name in Australia

Updated: 5 December 2019

When you're setting up a business structure you will likely hear the phrase ‘a company has its own legal personality’, particularly when you read about different business structures in Australia.

So what exactly does legal personality mean?

And, what’s the status of a business name?

We’ll discuss both below.

Let's begin with a company.  

Company 

When you set up your company, you’ll choose a company name and you will be given an Australian Company Number (ACN).

Also, you can choose not to have a company name and simply use an ACN.

Either way, once set up, you’ll have a company that is legally able to:

  • enter all sorts of contracts;
  • hire workers
  • sue and be sued; and
  • pay taxes to the Australian government.

So whose liable for the company?

The directors of the company are liable for how the company is run day-to-day.

Practically, this means:

  • directors or their delegates can enter into contracts on behalf of the company
  • if the company is being sued, the directors will need to defend the company;
  • Directors will give new hires contracts or delegate this task to someone (under section 126 of the Corporations Act 2001); and
  • the directors are liable for the company financials, and this includes paying taxes on time.

Business names

Now, the legal status of business names can be a source of confusion for many.

Unlike a company, a business name does not have a legal personality.

This means a business name cannot enter contracts, hire workers, sue and be sued or pay taxes to the government.

And, if you plan to trade using a name other than your company name, you'll need to register your business name.

So what’s the legal status of a business name? Its intellectual property - an intangible business asset of your business.

Below are some of the features of a company and business name side-by-side.

company

business name

Legal personality

No legal personality

Company name can also be the trading as or T/A name

If you aren't using the company name to trade, you need a business name

Shown as ABC Pty Ltd ACN xxx xxx xxx (9 digits)

Shown on shop fronts, websites, apps or on whatever you are selling

Company name and other company assets are IP you can protect

The business name is intellectual property you can protect

A unique company name and business are essential for avoiding claims from other businesses that you are breaching their intellectual property rights. 

Do you have a company or business name query or comment? Feel free to share it below in the comments. 

Finally, I wish you every success in your ventures!


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Do I have a hobby or a business and why it matters
Business Structures

Do I have a hobby or a business and why it matters

Photo by Alan Bishop on Unsplash

Do I have a hobby or a business and why it matters

Updated: 6 December 2019

Not everyone needs to set up a business structure right away. 

In fact, you'll only need to set up a business structure if you are really running a business, and not undertaking a hobby. 

For example, in your spare time you might be testing out a product or service on some friends, getting them to pay for materials only (and not charging any other fee ) - this is likely to be a hobby and not a business.   

And, if you have a hobby, you won't need to set up a business structure. 

But, on the other hand, if you are running a business, you'll need to set up a business structure. And you may even need to register for GST. 

Below is a guide to help you classify correctly, but as always, get advice if you are ever in doubt. 

In a hurry? Jump ahead.

What is a hobby?

A hobby is something you do in your spare time for leisure

Hobby features

As a hobby, you'll be able to: 

  • give away or sell your work for the material cost;
  • do it in your spare time; and 
  • avoid business reporting obligations.

Contrast a hobby to a business, discussed below.

What is a business?

If you have the aim of making a profit and your activity as a whole is commercial, then you're in business. 

Business features

As a business, you'll be able to:

  • apply for an Australian Business Number (ABN) to use in your business transactions. You can check the ABN entitlement tool to see if you're eligible.
  • register a .com.au website once you have an ABN.
  • access government information, services and concessions for business.
  • establish a business identity when selling to customers and other businesses.
  • claim tax deductions for business expenses.

Business or a hobby?

You'll need to know if you have a hobby or a business for tax, insurance and legal purposes.

Key questions to consider:

  • is the activity for commercial reasons?
  • is your main intention to make a profit?
  • do you regularly undertake your activity?
  • is your activity planned, organised and carried out in a businesslike way?

If you answered yes to most of these questions above, you're likely to be running a business.

The ATO website provides further questions, information and examples to help you understand the differences between a hobby and a business.

Why does it matter?

Well, if you're running a business, you'll need to set up a business structure. 

And, ideally, you'll want your structure setup before you start entering into contracts with suppliers, business partners or anyone really.

And, you'll want to consider tax, insurance and legal factors.

The items below are not exhaustive, but they'll give you an idea about why the classification of hobby or business matters.   

Tax - you'll want to know the most effective structure.

For example, sole traders and partnerships pay tax at the individual tax rate.

And, if your turnover is $75,000 or more per year, you'll need to register for GST.  

And, companies that are operating as a small business will pay 27.5% tax. 

Insurance - if you are running a business, you may need insurance to protect you for: 

  • workers compensation
  • professional indemnity 
  • building and contents
  • public liability

Legal - the first step is to pick the right business structure (before you start entering business contracts).

The 4 main business structures in Australia are:

  1. Sole trader 
  2. Company 
  3. Partnership 
  4. Trust

Liability is a big deciding factor when choosing a business structure.

While sole traders and partnerships are personally liable for debts of the business, this is not the case for a company.

As a company director, you'll enjoy limited liability. This means, your liability is limited to the value of the company assets.

And, the company is a seperate legal entity that's seperate to you.

So, now you know the difference between a hobby, a business and why it matters. 

Got questions or comments? leave them below.

I wish you every success in your ventures! 


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Selecting, using and changing an Australian company name
Business Structures

Selecting, using and changing an Australian company name

Photo by Kieron Mannix on Unsplash

Selecting, using and changing an Australian company name

Updated: 7 December 2019

Here are the rules you need to know about to select, use or change an Australian private company name.

In a rush, jump ahead!

When a name won’t be available unless it’s:

  • identical to a name that’s reserved or registered; or 
  • identical to a name that’s that’s held or registered on the Business Names Register; or
  • Unacceptable.

No-name companies 

Under section 148 of the Corporations Act, a company may either use an available name OR the expression “Australian Company Number” followed by the company’s ACN, 9 digits.

Acceptable abbreviations

You may use the abbreviations in the table below with or without full stops. 

Word

Abbreviation

Company 

Co or Coy

Proprietary

Pty

Limited

Ltd

No Liability

NL

Australian

Aust.

Number

No

And

&

Australian Company Number

ACN

Australian Business Number

ABN

Reserving a company name 

You may reserve a name with the Australian Securities and Investments Commission (ASIC) and if the name is available, ASIC must reserve it.

The reservation will last for 2 months running from the date the application lodgement.

And, you may request an extension of the reservation and it’s up to ASIC whether they accept your extension.

Where to use your company name 

You’ll need to use your company name on all public documents and negotiable instruments like documents guaranteeing the payment of specific amount of money.

However, you don’t need to use your ACN on cash register receipts.

Names you can’t use 

You can’t use a company name with ‘limited’, ‘no liability’ or ‘proprietary’ or an abbreviation of those words. To avoid any confusion, you can use these at the end of your company name if that's what you've selected on your company registration form. 

Changing a company name 

To change a company name, you must pass a as special resolution adopting a new name and lodge an application form with ASIC. 

There are special rules for changing a company name if the company is under external administration.

ASIC may direct a company to change its name

ASIC may direct a company in writing to change its name within 2 months if: 

  • The name should not have been registered 
  • The company has breached a condition relating to the availability of the name 
  • Consent to use the name has been withdrawn
  • The company has breached a condition on consent to use the name
  • The company is no longer allowed to use the name.

Effects of a name change 

ASIC will need to issue a new certificate of registration. However, changing a company name does NOT:

  • Create a new legal entity
  • Affect the company’s existing property, rights or obligations or
  • Render defective any legal proceedings by or against the company.


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Australian company
Business Structures

Why the company structure is most popular in Australia

Photo by Liam Pozz on Unsplash

Why the company structure is most popular in Australia

Updated: 7 December 2019

There are 4 business structures to choose from in Australia, these are the sole trader, company, partnership and trust structures. 

Amongst these, the company is by far the most popular in Australia followed by sole trader, partnership and finally trusts.

In fact, by the end of 2018, 38% of private businesses were companies in Australia. 

So here are the official statistics for all business structures in Australia as at the end of 2018, courtesy of the Australian Bureau of Statistics.

Australian structures in 2018 

Structure

Count

Percentage

Company

870,064

38%

Sole trader

629,388

27%

Partnership

257,213

11%

Trust

556,251

24%

Now, unlike the sole trader structure, companies are not the cheapest business structure to setup (we’ll cover costs below). So, why are companies popular in Australia ?

Here are some popular company features:

  • Separate legal entity - a company is a separate legal entity. It can sue and be sued. Your personal assets are separate to the company assets so this provides founder’s peace of mind.
  • Limited liability - your liability is limited to the company’s assets.
  • Investor friendly - companies are particularly popular for businesses that are seeking investment. Shares can be allocated to investors easily.

Below I am going to cover some of the catch’s with the company structure so you are well informed.

What are the catches?

So we discussed the draw cards for the company structure above. What about the catches?

  • Setup and running costs - expenses can sometimes be a deterrent.
  • Corporations Act - there are rules, rules and more rules to comply with. So it's important so stay connected with a good advisor or read the ASIC website. e.g. to informed about changes you need to notify ASIC.
  • Shareholder obligations - the shareholders own the company so you are accountable to them.

What are the costs of maintaining a company structure 

There’s the initial setup fee that’s paid to ASIC, currently $488 and the service fee (if you pay either an accountant or lawyer to setup your company).

Also, there’s the ASIC annual renewal fee of $263.

There's also the annual income tax return fee. Fees can be around the $2,000 mark and higher, depending on complexity.

Legal costs include shareholder agreements, founder agreements where there is more than one director or one shareholder.

Can you change structures?

Can you change your business structure ?

Absolutely.

In fact, it’s common for businesses to move from sole trader to the company structure to keep initial setup costs low.

Timing is going to be important for tax and legal reasons, so get advice first. 

I wish you success in your ventures!


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Business structures in Australia
Business Structures

Business structures in Australia

Photo by Laura Cros on Unsplash

Business structures in Australia

Updated: 17 June 2020

Ever wondered which business structures exist in Australia? and how they work?

There are 4 main business structures in Australia, these are 1) sole trader 2) company 3) partnership and 4) trust.

I'll discuss each below.

Sole trader 

Who is using the sole trader structure?

All sorts of people use the sole trader structure.

Everyone from freelancer graphic designers, web developers, consultants through to to trades people like plumbers, carpenters and electricians, all choose the sole trader structure. 

Why use the sole trader structure?

The sole trader structure is simple to set-up and costs little to setup.

You simply apply for an Australian Business Number (ABN) to set it up.

So its simple to setup. Are there any disadvantages?

Now, as a sole trader, you are personally liable and there is no separation between your personal assets and the business’s assets - they are one and the same, unlike the company structure.

Also, you'll pay taxes at the individual rates. 

Company 

In contrast to the sole trader structure, a company does allow a separation between your assets and the business’s assets.

You are liable to the value of your company assets only. 

Why?

Because a company has its own legal personality, it can sue and be sued.  

Also, you can allocate shares to shareholders.

And, for these reasons, the company structure is quite popular amongst Australian startups taking risks and bringing investors on board.

What does it cost to setup a company ?

There is the initial ASIC registration which is around $500 at the time of writing. If a lawyer or accountant registers your company, you’ll need to pay them a service fee.

Also, there is an annual renewal fee which you pay to ASIC, currently around $300.

And then there’s income tax preparation, while fees can vary, $2,000 + is a good indicator of a starting point.

Partnership 

A partnership is a group of people carrying on a business together.

You would pick this structure if you are working with up to 20 others, are not interested in bringing investors on board through share allocation.

Also, you can choose from a general or limited partnership.

The legislation for partnerships varies for each state and territory in Australia.

This structure is typically used by professional service providers like accountants and lawyers. 

What’s involved in setting up a partnership?

A partnership is fairly simple to set up and inexpensive.

You’ll need a separate tax file number (TFN) and an ABN to use for all business dealings. 

Similar to the sole trader entity, you and your business partners are personally liable for the business debts. Each partner pays tax on the share of net income they each receive.

Each year a partnership tax return needs to be lodged.

And, each partner is responsible for their own superannuation as they aren’t employees. 

Trust 

Finally, a trust is an entity that holds property or income for the benefit of others.

Trusts can be expensive to setup. Setup costs include a trust deed, there are formal yearly administrative tasks and if you operate your business as a trust, the trustee is legally responsible for its operations.

A trustee of a trust can be a company, providing some asset protection.

Business name and GST 

In Australia, to run your business, you can register for a business name as well, but make no mistake, a business name is not a separate legal entity.

And, a business name is just that - a name. It does not have its own legal personality. 

Also, registering a business name does not provide instant protection for your intellectual property - however you may wish to speak to an IP lawyer about steps you can take to protect your IP. 

Regardless of your business structure i.e. sole trader, company, partnership or trust, you’ll need to be registered for GST if your annual turnover is $75,000 or more each year.

And, if you provide taxi or limousine travel for passengers (including ride-sourcing) in exchange for fares, you will need to be registered for GST regardless of  your turnover.

I wish you success in your ventures!





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3 useful tips for residents and non residents setting up an Australian company_ABR
Business Structures

3 useful tips for residents and non residents setting up an Australian company

3 useful tips for residents and non residents setting up an Australian company

Updated: 8 December 2019

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.

In a hurry? Jump ahead. 

 

1. Your company name

Australian company name options

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).

Setting up your business name

Your ‘trading-as’ name otherwise known as the ‘doing-business-as’ name if you are based in or familiar with the USA 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 up 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.

Business name inspiration


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.


The most basic search a lawyer will perform to see if your chosen company name is available, is a search on the Australian Investments and Securities Commission (ASIC) website.


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.

Business name resources 

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:

3 useful tips for residents and non residents setting up an Australian company

Namechk search screen

Here's ASIC's guide for registering your business name.

A company is a separate legal entity that can sue and be sued.

On the other hand, a business name is just that; a business name that you use when you are operating your business for example on your branding etc.

Before you register your business name, it's a good idea to:

  • Get your Australian Business Number (ABN) first; and 
  • 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.

Australian business register


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. 

3 useful tips for residents and non residents setting up an Australian company

2. Your company officeholders

An important step is for you to nominate office holders for your company.

Company officeholders include company directors and secretaries.

For a private company, 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.

  • Have you been offered a director role ?

The Australian Institute of Company Directors has some useful educational resources for directors.

Does your company need a secretary ?


A private 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.

3. Other information you will need to set up your company

In addition to your company name and business name, you will also need to have the information below handy to set up your company:

  • Date of birth; and
  • Place of birth; and
  • Email address; and
  • Former name (if any); and
  • Residential address; and
  • Tax file number

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. 


Do you have any questions or experiences to share about setting up your company ? Be sure to share them in the comments below.









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Business Structures, Startup

4 things to know before you accept an Australian director position

4 things to know before you accept an Australian director position

Updated: 8 December 2019

A company is operated by directors and secretaries. Both have obligations under Australian legislation. 

Limited liability, the ability to allocate shares to investors and a favourable tax regime are all perks of the company structure.

So what does it take to be a director at a startup? Below are some insights to guide you.

1. Who can be a director?

You can be a director if you are at least 18 years old and consent to being a director before you are appointed as a director. Seems like a pretty low threshold right?

2. Australian resident

In addition, to set up a proprietary company, at least one director needs to ordinarily reside in Australia.

3. Legal responsibilities

In addition to the above requirements, you have legal responsibilities.

You should know that there is no such thing as a silent director that exists only on ASIC paper work and because of this, you need to be aware of whats required.

Regardless of whether you are a sole director at a company or one of many, you are legally responsible for how the company is run.

Directors and company secretaries have responsibilities per the Corporations Act, the most noteworthy include:

  • to act in good faith and in the best interests of the company; and
  • to exercise care and diligence; and 
  • to avoid conflicts of interest between the company and your personal interests; and 
  • to prevent the company from trading while insolvent (unable to pay debts when due); and 
  • to assist a liquidator if the company is wound up.

In addition to these general legal responsibilities, there are specific director responsibilities outlined below. 



4. Director responsibilities

Responsibilities are inevitable with your director role. We’ve broken down those responsibilities into 3 categories: (a) general (b) administrative and also (c) company operations.

(a) General

Especially relevant, key general director duties include: 

  • be honest and careful in your dealings at all times; and 
  • know what your company is doing; and 
  • take extra care if your company is handling other people's money.

(b) Administrative

As a director, you are also responsible for administrative duties to keep ASIC records up to date. The most noteworthy include:

  • Your current registered address; and 
  • Personal details of directors - name, date of birth and current residential address; and 
  • company financial records; and 
  • notifying ASIC of certain changes including - registered office, directors, principal place of business; and 
  • paying fees to ASIC - for example, the annual renewal fee.

Also, you may be interested to know we have templates to help you meet your administrative duties, simply click the button below to view our special package.

(c) Company operations

In addition, you are responsible for company operations including to:

  • make sure that your company can pay its debts on time; and
  • see that your company keeps proper financial records; and 
  • acting the company's best interests, even if this may not be in your best interests; and 
  • use any information you get through your position properly and in the best interests of the company. 

Conclusion

If you are in doubt, gather more information before accepting a director position and get your own independent advice.

Finally, you should only agree to be a director if you can carry out the duties, no matter what anyone tells you, being a director will never be just a title, you will have responsibilities that cannot be pardoned by ASIC.

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