Being up to date with your company’s paperwork can seem never-ending and pretty stressful at times. Although this may be the case, paperwork is essential in keeping your company registered and in full flow. ASIC annual reviews are one of those important yearly procedures you should be on top of.
Once you have set up and registered your business, you will need to comply with your ASIC obligations, including the ASIC annual review. So, it is really important that you understand what you must do to prepare and complete your company’s ASIC annual review in the simplest way possible.
What Is An Annual Review?
An annual review is a yearly assessment to ensure that ASIC is up to date with your company’s current details and ability to pay its debts. Your company’s annual review usually takes place on the same date that your company was registered.
Your annual review is accompanied by an annual statement. This statement will usually be sent to you within five days of your annual review date.
This statement will contain:
- Your company details
- An invoice for your company’s annual review fee
- Your company’s corporate key (the unique 8-digit number linked to your company)
Your annual statement must be completed within two months of your annual review date.
If you’re wondering what it will look like, check out an example here.
What Is The Purpose of An Annual Review?
There are three main reasons why ASIC annual reviews take place:
- For ASIC to check that it has the correct and up to date details of your company
- For the company’s directors to confirm the company can pay its debts when they’re due and pass a solvency resolution
- For the company to pay the annual fee to ASIC
Steps To Complete An Annual Review
- Check and Update Your Company’s Details
Within your annual statement will be all the information that ASIC has on your company.
If any of these details are incorrect or have changed, you will have to update them via ASIC’s online service.
Check out our article How To Change Your Company Details Via ASIC Online for more details.
- Pass A Solvency Resolution
This step is necessary for the company’s directors to confirm that the company will be able to pay its debts when they are due.
In order to pass a solvency resolution, the majority of the company’s directors must agree that the company will be able to pay its debts when they are due. This must be completed within 2 months of your company’s annual review date.
Once the resolution is passed, you should keep a record of this in your company files.
- Pay Your Annual Review Fee
When you receive your annual statement, you will be required to pay a fee. The invoice for this fee will be enclosed in your annual statement.
The fee that you will be required to pay will differ depending what type of company you have. Click here to learn which fees will apply to you.
You must pay your fee within 2 months of your annual review date. If you fail to pay this fee, you run the risk of receiving a late fee on top of your annual fee. Payments made on up to one month late will incur extra fees.
Are Annual Review Fees Tax Deductible?
Annual review fees are expenses associated with the continuation and registration of your company. Therefore, you can generally claim a tax deduction.
Where Does My Company’s Annual Review Statement Get Sent To?
If this is not the case, don’t worry. Your annual review statement may be sent to:
- The registered agent address (if one is appointed)
- Your nominated mailing address, or
- Your company’s registered office address
What Happens If I Don’t Complete An Annual Review?
To keep your company registered it is essential that you complete your annual review. If you fail to complete your annual review and statement, you run the risk of incurring late fees. In extreme cases, ASIC also has the potential to deregister your company.
Need More Help?
If you have any questions about ASIC annual reviews, we’re here to help! Get in touch with our team at 1800 730 617 or firstname.lastname@example.org
Also, we understand that managing your own ASIC compliance is often a hassle and time- consuming. Sprintlaw can take care of this for you.
When you subscribe to our Company Secretary Service, Sprintlaw will become your Registered Agent and a dedicated lawyer will take care of managing all of your company’s ASIC-related paperwork, including annual reviews and statements.
Let us handle it for you so you can focus on maximising your company’s potential. Learn more here.
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