Register a company quickly & affordably with expert lawyers

If you’ve been operating as a sole trader or partnership and are considering switching to a company structure, or if you’re starting a new business, there can be several benefits to setting up a company:

1. Tax efficiency
   • One of the key advantages of operating under a company structure is the potential for tax savings. As an individual, you could be paying up to 45% in tax on your income. However, companies are taxed at a flat rate of 25% (or lower for small businesses), which can be more cost-effective if your business is generating significant income.
2. Limited liability protection
   • A company is a separate legal entity from its owners, meaning it can own assets, incur debt, and enter into contracts in its own name. This separation generally protects your personal assets, such as your home and car, from business liabilities. If the company faces financial difficulties, your personal finances are generally safeguarded.
3. Greater flexibility for growth
   • Companies offer more flexibility for expansion and growth. For example, you can bring on new shareholders, issue shares, and raise capital more easily. This can be particularly useful if you’re looking to scale your business or attract investors.
4. Access to government grants and incentives
   • Operating as a company can make it easier to access various government grants, funding, and incentives that are often available only to businesses structured as companies.
5. Enhanced credibility
   • Many businesses find that setting up a company adds to their credibility. Clients, partners, and investors may feel more confident working with a company, as it is often seen as more stable and established.
6. Easier transfer of ownership
   • Companies provide a clear structure for transferring ownership if you decide to sell your business or bring in new investors. Shares can generally be sold, transferred, or passed on more easily than under other business structures.

Ultimately, the decision to set up a company depends on your business’s specific needs and goals. While there are clear advantages, it’s important to consider factors like set-up costs, ongoing compliance, and the best structure for your situation. If you’re considering this transition, our expert lawyers can help guide you through the process.

Setting up a company in Australia involves several key steps. Here’s an overview of the process:

1. Prepare for your application
   • Get financial and legal advice: It can be helpful to speak with professionals to make sure you’re choosing the right structure for your business.
   • Choose a company name: Make sure the name is available and does not infringe any existing trade marks. The name should also comply with ASIC’s naming rules.
   • Appoint directors and shareholders: Decide who will manage the company and who will own it. You will need at least one director who resides in Australia.
2. Set up the rules that govern your company
   • Draft a constitution or use replaceable rules: You can choose to have a constitution, which sets out how your company will be governed, or use the default replaceable rules provided by the Corporations Act. A constitution can be customised to suit your company’s needs, while replaceable rules are standard guidelines.
3. Choose your share structure
   • Decide on the classes and number of shares: Work out how shares will be divided among shareholders and whether there will be different classes of shares, such as ordinary shares or preference shares, with different rights and responsibilities.
4. Decide which state or territory your company will be registered in
   • While a company can operate nationwide, you need to specify a principal place of business. Consider where your main activities will be conducted.
5. Register with ASIC (Australian Securities and Investments Commission)
   • Complete the registration application: This includes providing details about your company name, business address, directors, shareholders, and share structure.
   • Receive an Australian Company Number (ACN): Once registered, ASIC will issue your company an ACN, which is a unique identifier.
   • Register for an ABN (Australian Business Number) and GST if applicable: You’ll need an ABN to conduct business, and if your company is expected to earn over $75,000 annually, you must also register for GST.

There are also some additional considerations:

1. Set up a business bank account
   • Once your company is registered, open a separate business bank account to manage your finances. This helps keep business and personal finances separate and is required for compliance.
2. Maintain compliance
   • Companies must comply with ongoing obligations, such as annual ASIC fees, financial reporting, and updating details when there are changes, for example when appointing a new director.

Setting up a company can seem complex, but professional guidance can make the process smoother and help ensure everything is done correctly. Sprintlaw’s expert lawyers can assist you with each step, from drafting a constitution to completing your registration.

Setting up a company is a significant step, and having a lawyer involved can make a real difference. Here are some key reasons to use a lawyer when setting up your company:

1. Tailored business structure
   • A lawyer can assess your budget, risk factors, and growth plans to recommend the best structure for your needs. Whether it’s a private company, partnership, or a more complex structure, setting things up properly from the start can save time, money, and potential legal issues.
2. Avoid costly mistakes
   • While it is possible to change your business structure later, it can be a costly and stressful process involving tax implications, legal fees, and administrative hurdles. Getting it right from the outset helps you avoid these complications and gives your business a solid foundation.
3. Compliance and legal requirements
   • Starting a company involves a range of legal requirements, from drafting a constitution to registering with ASIC. A lawyer can help ensure you meet your compliance obligations, avoid penalties, and have the right agreements in place, such as shareholder agreements, director duties, and intellectual property protection.
4. Protection of personal and business assets
   • A lawyer can help set up your company in a way that limits liability and protects your personal assets. They can also advise on how to safeguard your intellectual property, trade secrets, and other valuable business assets.
5. Future growth and flexibility
   • With the right legal advice, your company can be structured to support future growth, whether that means adding new shareholders, raising capital, or expanding into new markets. Lawyers can also draft agreements that make it easier to bring in investors and partners without compromising your control over the business.
6. Ongoing legal support
   • Setting up your company is just the beginning. Having a lawyer means you have ongoing access to legal advice as your business grows and evolves. This can include support with contracts, compliance updates, employment agreements, and more.

By using a lawyer to set up your company, you can feel more confident that your business is structured correctly, legally compliant, and ready for growth. Sprintlaw’s expert lawyers can guide you through every step of the process.

Our Company Set Up packages start at $500 + GST. This package includes everything you need to set up your company under a single company structure. You’ll receive an initial consultation with a Sprintlaw lawyer, ACN registration with ASIC for 1 company, and ABN registration for 1 business.

You’ll also receive an electronic company register pack, which includes a Certificate of Registration, Constitution, Share Certificates, and all required resolutions and consents. This price includes the initial ASIC fee to set up.

Please note that once you set up a company, you will need to pay an ASIC annual review fee for each company. Your first payment will be required in 1 year’s time.