Incorporating a Proprietary Company in Australia

Given its strong economy, robust banking system and quality of life, it’s no surprise that we receive  many enquiries from overseas regarding the establishment of a subsidiary company in Australia.  Generally, most foreign companies seeking to conduct business in Australia incorporate a Proprietary Company.

Quick Facts

Proprietary Companies:

Restrictions

The following restrictions apply to proprietary companies:

Large vs. Small Proprietary Companies

A Proprietary Company may be classified as a ‘large proprietary company’ or a ‘small proprietary company’, depending on whether they achieve two out of the following three criteria:

If a company does not satisfy at least two of the above criteria, it is considered a small proprietary company.

Process of Incorporation

The process involved in incorporating a proprietary company is as follows:

1. Choose an available company name

A register of Australian company and business names is maintained by the corporate regulator, Australian Securities and Investments Commission (ASIC).  A simple name search can be undertaken on their website at http://www.asic.gov.au/.

2. Complete ASIC Form 201 Application for registration as an Australian company

In order to complete the form, the following information must be provided:

There is a fee of $444 payable to ASIC at the time this blog was written.

Post Incorporation tasks

Once the company is incorporated, there are various other matters that need to be undertaken, such as:

Reporting Requirements

All Australian companies are required to keep financial records and various registers of their financial and administrative transactions.

If the company is considered a Large Proprietary Company (see above) it must also prepare annual financial reports which are:

Proprietary Companies that are wholly owned by foreign subsidiaries may also be required to fulfil these reporting requirements unless relief is granted by ASIC.

Companies must also notify ASIC of the following changes:

Please note that this is a very basic list of the requirements of setting up a proprietary company in Australia and we recommend that professional assistance be obtained.  However, hopefully it has given you context of what is required.

 

If you have any questions, please get in touch with us via our Contact Page.  Please also review our Resident Director Services page for more information about the services we can provide.