How to Start a Company

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  • Topic: Corporation, Law, Australian Company Number
  • Pages : 10 (2481 words )
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  • Published : April 25, 2013
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13-3-31

Australian Securities and Investments Commission - Starting a company or business

For companies > Starting a company or business

Starting a company

This information sheet sets out the steps involved in starting a company. It covers: deciding if a company structure is right for you choosing a company name deciding how to operate your company understanding your legal obligations as an officeholder getting the consent of those involved in your company registering your company, and understanding your legal obligations regarding your company name, Australian Company Number (ACN) and Australian Business Number (ABN).

How to start a company

Step 1: Decide if a company or a business structure is right for you Step 2: Choose a company name Step 3: Decide how to operate your company Step 4: Understand your legal obligations as an officeholder Step 5: Get consent from officeholders, members and occupiers Step 6: Register your company Step 7: Understand your legal obligations regarding your company name, ACN and ABN Step 8: Order a commemorative record of registration (optional) Where can I get more information?

Step 1: Decide if a company or a business structure is right for you You need to decide if a company or a business structure best suits your needs. We recommend that you seek legal or other professional advice about your circumstances. At this stage you should also make sure you understand what your legal obligations will be if you become a company officeholder: see 'Step 4: Understand your legal obligations as an officeholder' below. When we register an Australian company, the company can conduct business throughout Australia without needing to register in individual states and territories. Please note that registering a business name is not the same as registering a company. Registration or use of a business name does not: create a legal entity (only registering a company creates a legal entity), or

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13-3-31

Australian Securities and Investments Commission - Starting a company or business

allow the use of privileges to which a company is entitled, such as a corporate tax rate or limited liability.

It is not necessary to register a business name if the business is conducted under the name of the person or persons involved; that is, first name and surname, or initials and surname or under the full company name. See more about business names. Here’s how to register a proprietary company, the most common type of company. See also: Registering not-for-profit or charitable organisations Special purpose companies

Step 2: Choose a company name A company name must show its legal status A proprietary company must include the word 'Proprietary' or the abbreviation 'Pty' in its name and must also show the liability of its members, unless the members' liability is unlimited. For example: If the liability of the company's members is limited to the amount unpaid on their shares, the company name must end with the word 'Proprietary Limited'. If the liability of the members is unlimited, the company name will only end with the words 'Proprietary'.

There are approved abbreviations that you may use: see Table 1 below.

Names restrictions You can only choose a company name that is not already registered to a company or business. Use Check Name Availability to confirm whether your proposed name is identical or similar to another name already registered. Certain words and phrases cannot be used in company names without the approval of a specified Minister or government agency. Words that cannot be used include: 'building society' 'trust' 'university' 'chamber of commerce', and 'chartered.

You also cannot use words suggesting a misleading connection with government, the Royal Family or an exservicemen's organisation. These restrictions make sure that a company's name does not mislead people about its...
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