Are you looking forward to setting up a Pty Ltd (proprietary limited) company in Australia? If so, you landed in the correct place! Pty Ltd companies are the most common business structure in Australia. That’s because they offer ease of operation, flexibility, and limited liability. So we decided to share with you a guide on the step-by-step process of setting up a Pty Ltd company in Australia.

1. Choosing A Business Name

For any business idea, you require a name that resounds the services or products you plan to offer. Same goes here as well. Make sure you choose a unique and appropriate name for your Pty Ltd Company. Also, choose a name that goes and aligns with your key offerings and your business image. Make sure you choose a name that is not already registered by another company. 

2. Appointing Directors and Shareholders

A Pty Ltd corporation must have at least one Australian resident as a director. At least 18 years of age is required for the director. He must not be insolvent and cannot be barred from corporate management. The decision about the company’s stockholders comes next. They can be individuals or other companies, both Australian and foreign.

3. Registering with ASIC

Next comes the registration of your Pty Ltd Company where you have to apply with ASIC. You can do only this easily through the ASIC website or by email. A registration fee also has to be paid which depends on the type of company. While registering, you have to fill in details like the company name, director(s) details, shareholder(s) details, and also the company’s registered office address. 

4. Drafting the Company Constitution

This step though is not mandatory, but it is advisable to have a company constitution in place. This document has a set of rules and regulations about the company’s internal management and also has the rights and responsibilities of the shareholders. If you decide against having a constitution, the Corporations Act of 2001’s applicable rules will apply to the business.

5. Obtaining an Australian Business Number (ABN)

As you are done with company registration, the next step is to apply for Australian Business Number (ABN) through the Australian Business Register (ABR). This is a unique 11-digit number that identifies your company taxation and other business purposes. The ABN number is very handy while invoicing, claiming goods and services tax (GST) credits, and complying with tax obligations. 

6. Registering For Goods and Services Tax (GST)

This is another important step while setting up a Pty Ltd company in Australia. Registering for GST is when you expect that your annual business is going to exceed $75,000. In most cases, it is 10% of the goods and services sold or consumed in Australia. You can visit the ATO website for registering it.

7. Setting Up A Business Bank Account

You must always separate your personal and business finances. So we advise you to open a dedicated business account. Through this, you can manage your company’s finances, track expenses, and fulfil your tax obligations. You can choose any reputable bank that offers business banking services and consider factors such as fees, accessibility, and online banking features.

Conclusion 

Setting up a Pty Ltd company in Australia is something that requires careful planning and adherence to legal requirements. By following these steps, you can easily establish your business smoothly and enjoy the benefits of limited liability and a structured business framework. And for any assistance in setting up a Pty Ltd company in Australia, you can contact KPG Taxation which has expert accountants to help you out.