Due to the favorable economy, Australians are confident to launch their businesses in the country. Small businesses can contribute as much as 35% in the country’s 2019 gross domestic profit. It also provided almost half of the business opportunities all over the nation. Because of this, the government ensured that the steps to register a company in Australia had been simplified to encourage more business owners to enlist their companies.
Registering a business under a company structure in Australia has plenty of benefits. If you plan to start applying for company registration in the Land Down Under, here are some facts that you need to know.
Signs You Must Register Your Business As A Company
There are three types of business structures in Australia. It includes the sole trader, partnership, and company. Enterprises with a sole trader mean that the business is owned and operated by a single person. In contrast, partnerships are run by two or more individuals that take the same responsibility for the business. A company, on the other hand, has its legal entity. It also has a different tax computation compared to the other business structures.
There are several signs that you can watch out for if you are contemplating on registering your business as a company. The first one can be determined if the business begins to generate revenue. If you started the business as a sole trader and received an Australian Business Number (ABN), your income tax will include the profits of your business. If your business revenue starts to grow, you will need to consider going through all the steps needed to register a company.
Another telltale sign that you need to register your business as a company is your need to protect yourself from business risks. Based on the Corporations Act 2001, companies are considered as separate legal entities. It means that any debts and liabilities incurred by the business will not affect the personal finances of its owners.
Also, you will be able to protect your brand if you decide to register a company in Australia. Sole traders and businesses under partnerships must register a trademark for their name, logo, and other business ideas separately if you want to prevent other companies from using it for their gains. But if these are done under a company structure, you do not need to file separately for these trademarks.
How To Register A Company
Once you decide to register your business as a company, you can head over to the Australian Securities and Investment Commission (ASIC) to know all the details. You may consult with professionals who can prepare and handle all the paperwork for you to lessen your load. They will submit all the requirements with ASIC and pay the required government fees for a charge.
You may also process the registration online. But you need to go through all the other essential processes like registering the business name, adding crucial company details like the address, and list of all people involved in the company. You must also know how to issue shares based on the actual value of your company.
If you have the vision for growth and expansion for your business in Australia, you must consider registering it as a company. It will not only provide lower liabilities and reduced tax advantages; it will also prove to your target market and investors that your enterprise is legitimate as well. Once the company has been registered, you can start reaping all its benefits.