Company is a separate legal entity which offers limited liability to shareholders. A private (proprietary) company will be address as XXX Pty Ltd and a public company will be address as XXX Ltd.
Advantages of a company include that:
Disadvantages of a company include that:
How to set up a company?
Step one – ASIC registration
You will need to provide:
Step two – ATO registration
Once the company is established, you can register ABN, TFN, GST & PAYG withholding by applying to Australian Business Register.
Under section 201A of the Act:
Other Important issue
If a director or a shareholder happens to be a non – resident, extra information need to be provided to the ATO, such as notarized ID and passport.
In some cases, you need to seek FIRB approval to admit non – resident shareholder.
When a shareholder transfers its shares, market value rule will apply. The transferor might be subject to capital gains tax. The transfer could attract stamp duty where underlying asset is real property.
The Audit Shield insurance policy is not compulsory although we highly recommend that all of our clients take up the insurance. Consolid8 receives a portion of the premium and we hold the policy on your behalf. The policy covers one financial year and we will contact you prior to arrange renewal in advance of the relevant expiry date. The Audit Shield Insurance is not automatic and you must opt in to receive the cover.