Congratulations on registering your company! Setting up a new company can be very exciting but also very daunting. If you have registered your company but are unsure of your next steps, we have set out for you, in this article, a summary of the legal and administrative tasks a company must do after it has registered.
Make sure your corporate register is up to date
Set up a corporate register i.e. a folder that holds all your official company documents.
- the certificate of incorporation;
- share certificates;
- share member register;
- company officer consent forms;
- minutes from your opening meeting;
- the company constitution; and
- copies of forms to be lodged with the Australian Securities Investment Commission (‘ASIC’).
- sign the consent to act as a director, application for shares and minutes of the first meetings;
- collect the amounts agreed to be paid per share, issue receipts and make appropriate entries in your company accounts;
- sign the share certificate;
and keep all the signed documents in your corporate register.
Safely store your corporate key!
A corporate key is an 8 digit number that is associated with your company. ASIC will post the corporate key to your registered address within 2 business days after your registration. The key is important as it is used to authorise communications between your company and ASIC.
Registering your Australian Business Number (‘ABN’)
You should apply for an ABN and Tax File Number (‘TFN’) with the Australian Business Register at www.abr.gov.au.
If your general service tax (‘GST’) turnover is greater $75,000 you should also register for GST, and if you are intending to employ other people, you will need to register for PAYG.
You can register your GST and PAYG at the same time you register for your ABN and TFN.
Opening a bank account
You will need to open a bank account for your company. To open the bank account, the bank will require you to provide a copy of your Certificate of Registration, your Constitution, and a lodged ASIC lodged form. Sometimes banks may ask to see original copies of the certificate. If the bank makes query about the authenticity of your documents, it can be verified by calling ASIC on 1300 300 630.
Consider taking out insurance
Where your business is providing services, it needs to arrange for appropriate insurance. For professional services, this usually includes professional indemnity insurance and public liability insurance.
Professional indemnity insurance is designed for professionals who provide advice or a service to customers, and it is to protect you and your company against unfounded allegations.
Public liability insurance is designed to protect your business from the financial impact of causing any personal injuries or property damage to other people in the provision of your services.
Depending on the nature of your business, you may require other forms of insurance. You should seek the advice of an experience insurance adviser.
Know your duties
Directors of companies have a number of duties they must follow. Make sure that you, and any other directors of the company, have a good understanding of their duties under the Corporations Act. For more information, go to http://www.asic.gov.au/company-officeholders.
Are you considering incorporating your company? LegalVision is here to help you through the whole process. Contact us at 1300 544 755 for free fixed-fee quote today.
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