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Company

A company is a separate legal entity from its owners, with its own rights and responsibilities. 

The most common type in Australia is a Proprietary Limited (Pty Ltd) company.

Advantages

Disadvantages

Disadvantages

✅  Limited liability for shareholders

✅  Separate legal entity that can own assets

✅  Flat company tax rate (25-30%)

✅  Easier to raise capital and transfer ownership

✅  Perpetual existence independent of shareholders

✅  Enhanced business credibility

Disadvantages

Disadvantages

Disadvantages

❌  More expensive and complex to establish

❌  Significant regulatory and reporting obligations

❌  Higher setup and compliance costs

❌  Directors have legal responsibilities

❌  Less privacy (company details are public)

❌  Complex tax arrangements

Registration Requirements

  • Register with the Australian Securities and Investments Commission (ASIC)
  • Appoint directors and shareholders
  • Create a company constitution or adopt replaceable rules
  • Apply for an Australian Company Number (ACN)
  • Apply for an Australian Business Number (ABN)
  • Register for GST if turnover exceeds $75,000

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