The first step remains the same for any business belonging to any industry. The size of the company does not matter in this aspect. All small and big companies and organizations must register their company to execute any business transactions.
When you register a company, there are several factors to consider. These prove beneficial to you and your business in the long run. Discussed below are the prime factors that play a crucial role in registering a company.
Factors to consider before registering a company
Starting a business is no joke. Firstly consider your business insurance resource and also there are crucial factors that you need to before starting a business. Discussed in brief are the prime steps involved in the process.
Step 1: Is the company the right decision for you?
It is vital to assess if a company fits your needs. If not, you should reconsider an alternative business structure. Various tools are available that help you design the layout that suits your business best and the procedure to establish the same. The other types of companies that you can register are as follows:
- Nonprofit/charitable organizations
- Registrable Australian bodies
- Companies designated for particular purposes
A company can be defined as a legal entity of its own. It permits you to conduct business throughout the country. There are other significant privileges such as limited liability and corporate taxes.
Step 2: Choose a name, keeping in mind the limitations
The name you choose cannot be identical to that of an existing business’ name. in addition, certain characters are permitted to be used in the name of a company. There is also a list of restricted terms that one should avoid.
To reserve a name to ensure that it is available when you decide to register your company, you can apply to reserve the name that will be valid for two months. Refer to existing trademarks and names before naming your company. Make sure to avoid similar names and trademarks, as this will harm your reputation.
Step 3: Decide how your company will operate
There are four common ways by which your company can be governed.
- Per its constitution
- Replaceable rules
- A mix of both
- Shared structure
Step 4: Outline the top management
It is necessary to decide who the shareholders and directors of the company are going to be. A minimum of one director is required to be an Australian resident. All directors should be 18 years of age and above.
Written consent from all individuals appointed as directors and shareholders of the company is mandatory.
Step 5: Finalize the share structure
Upon picking the shareholders, finalize the quantity and class of shares allotted to them. The rights and limitations attached to these shares will be mediated by the class of shares issued by your company.
Step 6: Pick the state/territory in which you want to register your company
You can register your company in any state/territory within the country. Based on the place of your choice, register for the GST certification.
Step 7: Pick the headquarter and primary office location
The next step is to choose a place and office space from where you will conduct the business operations.
Step 8: Fill out all the concerned forms and paperwork
The Australian Government’s Business Registration Service (BRS) provides all the necessary services to register a company in Australia, making the process easy and simplified.
Setting up a company can seem daunting. However, it is relatively easy. Use this step-by-step guide to help you plan your checklist. You can execute the process independently or via a service producer who will assist you with the same. Setting up a company is the first step to growing a successful business.