We can define the term company to be an entity that is legally set up by a group of people with the purpose of running a business. There are two types of companies. One instance is that there is a public company that comprises of more than five shareholders where the public is allowed to purchase shares. There is also the private company that provides limitation on the number of people that buy shares. Therefore, for the full completion set up of a company, it requires company formation stages. Company formation Australia requires one to fill and submit a registration form and thereafter acquire an incorporation certificate. Alongside with the certificate, one obtains a company number that is Australian. Acquiring of a business number then follows next where one is required to apply with the tax authority online. The process of forming a company in Australia is easy and first.
There are number of steps incorporated in company registration Australia. For instance, one needs to figure out whether the company under registration is right for their needs. Thereafter, one needs to choose a company name that should not look alike with another name in use. The third step involves deciding on who to govern the company. Governance in the company can constitute of either rule that is replaceable, a constitution or both. One is then required to understand all the legal requirements that include ensuring the details of the company are up-to-date, maintaining good records and paying the required annual fee. The fifth step requires one to get written agreement from the various people filling their roles. Director, secretary and one member are the various positions in the company. The sixth step to be followed is where one registers the company and it can be done in three ways. The different ways used while registering the company include completing form 201 and mailing it, contacting a service provider that is private and using the Australian government online service. After the whole registration process of the company, one is required to ensure that the company’s information is displayed publicly.
Business ownership is under different categories in which they can be incorporated during company registration. Sole trading and partnership are the major types of business ownership. For instance, there is a sole trader that is a business owned by a single person. The business company is allowed to employ workers but it only has one name. There are also different types of sole traders that comprise of tradesmen, freelancers, artisans, small retailers and any professional performing their own work. A company that comprises of two to twenty members is termed to be a partnership. During the incorporation process in the company, legal processes are not necessary hence the company requires the use of written contracts.