Being up to date with your company’s corporate secretarial filings and paperwork can seem endless and, at times, overwhelming. Although this may be the case, your company’s corporate documentation is crucial in maintaining your company’s registration with the Australian Securities and Investments Commission (ASIC). ASIC annual reviews are one of those important annual obligations you need to be familiar with and keep on top of. This article explains what an annual review is and how to complete it in the simplest way possible.
What is an Annual Review?
An annual review is a yearly assessment to ensure that ASIC is up to date with your company’s current details and ability to pay its debts. Your company’s annual review usually takes place on the same date that your company was registered. Soon after its annual review date, ASIC will issue each registered company with an annual statement and an invoice statement for its annual review fee.
Each year the annual statement will show the current information from the ASIC register concerning the company, such as the name of officeholders, registered address and share structure, amongst other details.
It is essential that you review the information in the annual statement to confirm it is correct.
Additionally, an annual statement accompanies your annual review. ASIC will usually send this statement to you within five days of your annual review date. This statement will contain:
- your company details;
- an invoice for your company’s annual review fee; and
- your company’s corporate key (the unique 8-digit number linked to your company).
You must complete your annual statement within two months of your annual review date.
What is the Purpose of an Annual Review?
There are three main reasons why an ASIC annual review takes place. Firstly, it allows ASIC to check that it has the correct and most current details relating to your company. Secondly, it lets your company’s directors confirm the company can pay its debts when they are due and pass a solvency resolution. Thirdly, an annual review is a time to pay your company’s annual fee to ASIC.
Continue reading this article below the formSteps to Complete an Annual Review
There are three steps to smoothly completing an annual review.
1. Check and Update Your Company’s Details
Within your annual statement will be all the information that ASIC has regarding your company. If any of these details are incorrect or have changed, you will have to update them via ASIC’s online service.
2. Pass a Solvency Resolution
The next necessary step is passing a solvency resolution. To pass a solvency resolution, the majority of the company’s directors must agree that the company will be able to pay its debts when they are due. Your company directors must pass this resolution within two months of your company’s annual review date.
3. Pay Your Annual Review Fee
When you receive your annual statement, you will be required to pay a fee. You can find this invoice in your annual statement. The fee you will be required to pay will differ depending on the type of company you run. The fee can range from $50 for a special purpose company to $267 for a proprietary company and $1240 for a public company.
You must pay your fee within two months of your annual review date. If you fail to pay this fee, you risk receiving a late fee on top of your annual fee.
Key Takeaways
As a registered company, part of maintaining your company’s registration with ASIC is completing an annual review. It is a yearly assessment to ensure that all your company’s details are up to date and lets ASIC know that your company can pay its debts. The process involves checking and updating your company’s details with ASIC and passing a solvency resolution. Finally, you will need to pay your annual review fee. For more information about ASIC annual review or any other company obligations, contact LegalVision’s business lawyers on 1300 544 755 or fill out the form on this page.
Frequently Asked Questions
Annual review fees are expenses associated with the continuation and registration of your company. Therefore, you can generally claim a tax deduction.
Once you have registered with ASIC online services, all correspondence concerning your company is likely to be communicated electronically via your ASIC online portal.
To keep your company registered you must complete your annual review. If you fail to complete your annual review and statement, you risk incurring late fees. In extreme cases, ASIC also has the potential to deregister your company.
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