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So, you want to set up a company but don’t know how long the whole ordeal will take. Even though setting up a company is a bit more complex than other legal structures, the actual application process doesn’t take very long at all. In fact, you should be done in under 20 minutes.
However, that doesn’t exactly mean you can go ahead and set up a company right this second – not unless you’ve sorted out a few other details first.
How To Set Up A Company In Australia
Although the application process for setting up a company isn’t particularly time consuming, there’s a couple of steps you need to take before you can actually get to that part of the process.
To set up a company in Australia, you’ll need to think about things such as:
- Who the shareholders of your company will be
- The directors of your company
- How will the company be governed – through replaceable rules or a Company Constitution?
- General company details – address, email, bank account, phone number, company name
- The type of company you will be registering as – such as a Dual Company or a B-Corp
- How you’ll be managing your company’s ongoing obligations with ASIC
Sorting out all of this and more is key, as once you get to the application process you’ll need to answer a number of questions. The more solid details and plans you have in place, the easier the actual application process will be.
We’ve written in more detail about what it looks like to set up a company in our article, Steps To Incorporate Your Small Business In Australia.
How Long Will the Company Registration Process Take?
Once you’ve got all the right details sorted, then according to the Australian Business Register, the application itself should only take about 15 minutes. Provided there’s nothing wrong with your application and it gets processed without a hitch, you should receive your approval in about 2 business days.
Once your application to register your company is approved, then you’ll receive an Australian Company Number (ACN), which officially establishes your company. However, it’s not all done just yet! You will still need to get an Australian Business Number (ABN) and ensure you’ve taken care of your tax obligations. If you have a unique Business Name, then at this stage you may want to consider getting it Trademarked.
Basically, even though the actual application process for setting up a company is important, there’s a number of other things you also need to take care of to firmly set up your company.
Is It Difficult To Set Up A Company?
No, it’s not particularly difficult to set up a company. However, it’s not out of the ordinary for people to get intimidated by the process of setting up a company, before they even get started! This is understandable, as there’s a lot of details and information to sort out. Moreover, some of the legal aspects of it can get a bit confusing.
This is why it’s important to seek the help of a legal expert when you’re setting up a company. When you’re making the effort to set up a company, you want to make sure it gets done right and no details are missed. Setting up a company is essentially laying the foundations for your business, so the last thing you want is for cracks to appear in your foundations down the road. A legal expert who does this everyday and knows the ins-and-outs of company registration can make sure your company is set up the right way.
You only get one chance to set up your company, therefore it’s wise to ensure it gets done well. Enlisting the help of a legal expert can ensure that your company gets set up so that its future success is encouraged, rather than hindered.
Does It Cost Money To Set Up A Company?
Yes, there’s fees associated with setting up a company. The exact fees you’ll be paying will depend on the specifics of your registration. At the moment, the fees for starting a company are between $474 and $576.
It’s a good idea to look these up or ask a legal expert for help, as fees can be subject to change.
If you want to learn more about setting up a company, check out Quick Tips: Registering A Company In Australia.
Next Steps
When it comes to setting up a company, the actual application process doesn’t take very long. However, the details you need to figure out before you actually get to the registration stage can be pretty time consuming and somewhat complex. It’s best to let a legal expert help you out, that way you can be assured that your company is being set up properly. To summarise what we’ve discussed:
- Setting up a company takes under 20 minutes for the application process
- Before starting the application, consider factors like shareholders, directors, company governance, contact details, company type and ongoing obligations with ASIC
- The application itself, once all details are sorted, typically takes about 15 minutes, with approval expected in about 2 business days
- After approval, you’ll receive an Australian Company Number (ACN) but additional steps include obtaining an Australian Business Number (ABN), fulfilling tax obligations and potentially trademarking a unique business name
- While setting up a company is not particularly difficult, it can be intimidating due to the details and legal aspects involved
- Fees for setting up a company range between $474 and $576 – it’s advisable to check for updates or consult with a legal expert
- Seeking the help of a legal expert is recommended to ensure the process is done correctly and to avoid overlooking important details.
If you would like a consultation on setting up a company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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