Open a start-up in Australia is: what are the main corporate forms ?
The most common corporate forms in Australia are the following:
- Individual enterprise (Sole trader) : it is a company that can be started by a single person who is also its owner and manager and who is responsible for debts derived from the company. This individual can in turn employ employees. The Sole trader is the cheapest solution because the annual registration fee is around $ 36 and the three-year cost is $ 84;
- Company of capitals (Company) : that is the company with legal personality. In general, the most common are the proprietary limited (and therefore the limited liability company), the public company (or the publicly listed company) and the one-person company (the one-person limited liability company);
- Partnership (partnership) : this is a company made up of two or more people, up to a maximum of 20. You can choose between two types of partnership, general or limited, which we will talk about below.
If you have decided to open a company of people in Australia , then, you can choose between two types, here they are:
- general partnership is a kind of general partnership where all the members are equally responsible for the management of the company, and each holds the unlimited joint and several liability for any debts and obligations of the company. This type of partnership does not have to be registered, but a verbal agreement or a private agreement is sufficient to establish it. Instead it is possible to register the trade name
- limited partnership is a kind of limited partnership where there are two types of partners: one or more general partners , or general partners who manage the company and can negotiate binding agreements on its behalf (therefore their liability for debts and obligations is unlimited); one or more limited partners , ie limited partners who cannot manage the company and have a limited liability for debts and obligations based on the amount given to the company. How is a limited partnership established? In this case, a deed of registration with Consumer Affairs Victoria is required
Company registration in Australia
After you have planned a detailed business plan and chosen the type of company to start, you can take the first real step to open a start up in Australia: register your business.
First, choose the legal status of your start up between:
- Australian company : the companies we mentioned in the previous paragraph, which are set up directly in Australia
- Foreign law company : these are companies established outside Australia that do not have their head office in Australia. To operate in this land they can use secondary offices or offices connected with the parent company
Now you can proceed with the registration of the company in Australia , which can be defined as completed only with the registration with the Australian Securities and Investments Commission (ASIC) , that is the government commission that deals with the legislative regulation of the investments of companies in Australian land.