Setting up a Business in Australia

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Sole trader
 
 
No minimum capital.
1 person
 
 
The liability of the sole trader is unlimited.
Registration fees vary from state to state. They can go up to AUD 1,500. The average standing at AUD 650-750.
Private or Proprietary Company
 
 
No minimum capital.
Between 2 partners and 50 partners maximum.
 
 
The partners' liability is limited to the amount of capital contributed.
Registration fees vary from state to state. They can go up to AUD 1,500. The average standing at AUD 650-750.
Public Company
 
 
No minimum capital.
5 partners minimum.
 
 
The partners' liability is limited to the amount of capital contributed.
Registration fees vary from state to state. They can go up to AUD 1,500. The average standing at AUD 650-750.
Partnership
 
 
No minimum capital.
20 partners maximum.
 
 
Their liability is joint and unlimited.
Registration fees vary from state to state. They can go up to AUD 1,500. The average standing at AUD 650-750.
Limited Partnership
 
 
No minimum capital.
20 partners maximum.
There are two types of partner: active partners and silent partners.
 
 
The active partners' liability is unlimited. The silent partners' liability is limited to the amount of capital contributed as long as they do not take part in the management of the company.
Registration fees vary from state to state. They can go up to AUD 1,500. The average standing at AUD 650-750.
 
 

Business Setup Procedures

Administrative Formalities
Company charters, made up of the Memorandum of Association and the Articles of Association, must be written in English.
The statutes must be filed with the Australian Securities and Investment Commission (ASIC). The Business name must be registered in the State or the Territory where the company is operating from. The National Business Names Office issues an identification number (Australian Company Number). As soon as it receives the Certificate of Incorporation, the company can start business. The Business name registration is valid throughout federal territory and the incorporated company can develop its business all over Australia, without any other formalities.
The Competent Organization
Australian Security and Investment Commission (ASIC)
Time Necessary for Registration
4 to 6 working days
 

Recovery Procedures

Principle
Via Debt collectors who are paid on commission, then through the legal framework and the appeal system. Up to 40 000 AUD: recoverable by a local court. Up to 750 000 AUD, by a District Court, and above this by the High Court.
For further information, consult FINDLAW AUSTRALIA.
Minimum Debt-to-Capital Ratio Triggering Liquidation
According to Australian legislation, a company starts being in a bankruptcy situation either when a creditor files a claim with the Insolvency and Trustee Service of Australia which sends a bankruptcy notice, or when there is a creditor petition. The Federal Court determines whether the company has committed an act of bankruptcy.
Bankruptcy Laws
Bankruptcy Act 1966
Amendment Act 2007
Reorganization and Rehabilitation Laws
Bankruptcy Act 1966
Amendment Act 2007

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