Is your business ready to take on new heights? Are you seeking greater legal protection for your business? You may be considering company registration.
Before taking your next steps, check out our list of the 9 essential questions you need to ask yourself about your business before starting your company registration application.
9 Questions You Need to Ask Before Registering your Company
1. Are you a limited or unlimited company?
This means deciding the extent of each shareholder’s personal liability. Your company can choose a “limited by shares” structure in which each shareholder is only liable for the amount they paid for their shares. The other option is “unlimited with a share capital” in which shareholders can be held liable for the debt of the company.
2. Do you govern by replaceable rules or a constitution?
The Corporations Act 2001 (Cth) provides a basic set of rules you can adopt, or your company can develop its own constitution.
To learn more about What is a Company Constitution? check out our previous guide.
3. What’s my business name?
Choosing your company name may sound like the fun part, however there are certain rules governing your choice of name. The name needs to convey to the public the legal status of the company. This includes whether it is a public or proprietary company, and whether shareholders have limited or unlimited liability. You can use our tool in the first step of your company registration to see whether your chosen name is available.
4. Which state am I going to register in?
Your ABN will be registered Australia-wide, but it is necessary to nominate a state to be registered in.
5. What are my registered office and business addresses?
Companies are required to disclose their registered office and business addresses. These may be the same address, however if they are not both must be included. A registered office address refers to an address in Australia (not a PO Box) that all communication and correspondence with the company can be directed. A registered place of business is the location your company will mainly conduct its business.
6. Do I have an ultimate holding company?
This refers to another company that holds a majority of your company’s shares. While most proprietary companies will not have an ultimate holding company, their ABN/ACN and country of incorporation information will need to be disclosed if you do.
7.Who are my company officeholders?
Officeholders refers to your directors and secretaries. Companies are required to have at least one director, but appointing one (or more) secretaries is optional. Once you have chosen these officeholders, your company will need to obtain their written consent and keep this on record.
8.What’s my share structure?
This includes the total number of shares (note: a company must issue at least one share to one shareholder), the share class or classes available, and the dollar amount of these shares that are paid and unpaid.
9. Who are my shareholders?
These are the owners of shares in the company who are legally obliged to pay the agreed amount of each share. You will need to obtain written consent as to the number of shares and amount they agree to pay for them. After you have obtained this consent, create a register of shareholders.
This register should include this information:
- Name of shareholder;
- Date they were registered; and
- Specific details of their shares.
Ready for registration? Check out our range of Company Registration packages for a cost-effective and efficient way to establish greater legal protection and take your business to new heights.