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Procedures to Follow in Company Formation
We can define the term company to be an entity that is legally set up by a group of people with the purpose of running a business. There are two types of companies. There is the public company that consists of more than five shareholders and the public has permitted in the purchasing of shares. There is also the private company that provides limitation on the number of people that buy shares. Therefore, for the full completion set up of a company, it requires company formation stages. In Australia, one is required to give in a registration form whereby afterward one receives an incorporation certificate. Alongside with the certificate, one obtains a company number that is Australian. The next step that follows is acquiring a business number from the tax authority that is applied online. The process of forming a company in Australia is easy and first.
There are number of steps incorporated in company registration Australia. The the first step requires one to figure out whether the company under registration is right for their needs. The second procedure involves setting a name for the company where it should not be similar to a name that is existing. The third step involves deciding on who to govern the company. The company can either be ruled by rules that are replaceable, a constitution or both. One is then required to understand all the legal requirements that include ensuring the details of the company are up-to-date, maintaining good records and paying the required annual fee. Written consents from the persons filling their roles are required. The various roles include that of a director, secretary, and one member. The sixth step to be followed is where one registers the company and it can be done in three ways. The different ways used while registering the company include completing form 201 and mailing it, contacting a service provider that is private and using the Australian government online service. After the whole registration process of the company, one is required to ensure that the company’s information is displayed publicly.
Business ownership is under different categories in which they can be incorporated during company registration. Sole trading and partnership are the major types of business ownership. The type of business that is owned by a single person is termed to be a sole trader. Employees may be employed in this company but it only requires to have one name. Sole traders are of many types which include tradesmen, freelancers, artisans, small retailers and any professional performing work on their own. A company that comprises of two to twenty members is termed to be a partnership. The company incorporation can be done without following a legal process hence requires written contracts.