Is It Expensive To Register A New Company?
The costs that are involved in registering a new company
If you want to register a new company, you ened to lodge your application to the Australian Securities and Investments Commission (ASIC). You can register your new company using any of the business service providers that deal directly with them.
The best sites are one-stop centers with a comprehensive line-up of services to support start-up companies from name reservation and company registration to website development and accounting services. These business providers may also connect you to resources of the Australian Tax Office, the Australian Business Register and IP Australia.
But before you rush to the first website you see, you may wish to know how much it will cost to register your new proprietary company. Since the Australian Securities and Investments Commission (ASIC) is the primary regulatory agency for companies, you will have to pay some fees to ASIC, such as:
Name reservation fee
If you’re not ready to officially file the Form 201 required for registration, it’s a good idea to reserve your proposed company name to prevent it from being snapped up by someone else in the meantime. If you want to reserve a name for two months, the fee is $40. After that, but before the expiration of the 2 months, if you wish to extend the reservation period, you can apply to ASIC for an extension. If an extension is granted, you will need to pay a reservation fee of $40 for the extended period (another two months).
ASIC lodgement fee
A uniform rate of $400 is charged by ASIC at the time of filing Form 201 for the registration of a company. If you choose to register your new company with the help of a business service provider, then this amount is normally included in your provider’s registration package.
If you choose to register your new company by yourself, then you must submit your application for registration, together with the payment of the lodgement fee of $400. A receipt for this will only be issued by ASIC if requested.
Service provider fee
While anyone can lodge an application for company registration directly with ASIC, an experienced ASIC accredited business service provider can do the same for you with ease, in a relatively short period of time. This leaves you free to concentrate on the business of your business. You may be charged a fee if you use a provider’s website and online facilities to lodge your application for registration. While the service fees are not uniform, you may expect to pay anywhere from $130 to $170 for the basic company registration package. Always ensure that the service provider has been accredited by ASIC.
Shareholding
While this is not an amount to be paid to ASIC, you will need to commit some money to fund the initial capital of your company.
A ‘proprietary’ company that is ‘limited’ is required to issue shares to its shareholders. Details of shareholdings, such as shareholder names, along with their paid and unpaid amounts, must be specified in the Form 201 (company registration application). So if you are also a shareholder of the company you wish to register , you may have to buy some shares in that company.
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Tags: accounting services, asic, australian business register, australian securities and investments commission, australian tax office, business providers, business service provider, business service providers, company registration, ip australia, proprietary company, receipt, registering a new company, registration of a company, registration package, regulatory agency, reservation fee, reservation period, uniform rate
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Saturday, November 1st, 2008 at 8:33 pm under
