There are different rules and regulations for registering a company in every country. And in Australia, if you want to start your business by registering your company, you can complete the process in a week.
According to business experts, Australia is a major hub for entrepreneurs because it is the largest country in Oceania. Moreover, it is home to some of the most popular metropolitan cities of the world, like Sydney, Melbourne, Canberra, and Perth. So, if you start your business in Australia, it will have a good chance of progressing because of Australia’s undisputed trade relations with many countries. As such, if you plan to register a company in Australia, you must develop an understanding of different types of companies so that you can categorise your company accordingly. And the following points list these types:
Proprietary Limited Company
Many foreign investors prefer investing in a Proprietary Limited Company because you only have to appoint one regional direction. Hence, it is quite popular among investors. However, you can not exceed the number of shareholders by more than 50. PLCs can also be 100% foreign-owned, which is why many foreigners prefer opening a PLC in Australia, as it gives them many benefits and perks.
Some companies are open for public ownership as they are listed on stock exchanges. So when you see a company name that has Ltd attached to its name, know that it is a public company. However, these companies should have at least three directors, a secretary, and an auditor.
These companies are owned by two or several partners liable for their partner’s contribution to the company. However, in such companies, having at least one partner is essential as the country resident.
Trusts are the kind of businesses that a family or multiple families usually own. The best part about these companies is that the money generated by the trust is distributed to the beneficiaries, and then they have to pay the taxes generated only for the specific income.
The following points list some benefits of registering a company in Australia:
Your Personal Liability Will Be Limited
When you start your own work without registering it, you will be considered liable for all the actions you do for your work, including losses and debts. However, if you register the company, your company will be considered a separate entity, and if it experiences losses, you won’t be liable for it.
Minimised Tax Liability
When you register your company, you will only have to pay limited tax, as you will be charged only for the income your company makes, considering its domain and the number of people working in it.
Avoid Conflict With Founders
The best part about registering your company is that all the rules and roles are fixed, so you won’t have to argue or fight with your co-founders regarding any decision. However, if you have not registered your company, you will keep getting stuck in petty arguments about decisions.
When you register your company, you increase the scope for your brand visibility as your company will be legitimate. Thus, you will be able to freely market your products. Meanwhile, most customers prefer purchasing products from companies with legal identities to ensure customer security.
These points list all the types of companies you can register in Australia and the benefits of registering your company. So, if you are planning to register a company in Australia, it is essential to categorise the type of your company and then register it. Now, have a blast running a business in Australia!