The advantages and disadvantages of a 澳洲注册公司

1. Costs for registration

From May 28th 2012, registration of business names in Australia is now done across the country and the cost for registration is $39 for a year registration period, and $92 for a three-year registration period.

Also, the registration of an Australian business is also an all-Australian ‘thing’ that typically costs between $650 and $750 with a’shelf company provider’ or a ‘company registration agent’, and about $1200 to $1500 through an accountant.

There is no doubt that the registration of the business name is less expensive than the registration of a company. However it is true that the registration of an entity name or company name can eliminate having to create an official corporate name (on the assumption that the complete and precise name of the company, which includes the name ending – e.g. “Pty Ltd” – is always in use).

2. Costs for ongoing expenses

Name registrations for businesses must be renewed on a regular basis, after their three or one year registration period is over, the cost of $39 for a second one year registration or $92 for a three-year registration.

Contrary to this, a (‘standard private) company is required to pay an annual ASIC annual fee for review of 230 dollars (as as of July 1, 2012).

Furthermore, and speaking generally, businesses generally have additional ongoing expenses which include additional accounting charges that are related to maintaining a properly maintained account book for the company.

3. Limited liability

The main (and long-standing tradition and history) benefit of a incorporated firm is that it has only a small amount of responsibility. It is (and broadly) that a business can be obligated to make payments to creditors to the amount of its capital and assets, and any funds that are not paid for its share capital (usually zero since most companies issue shares that are paid in full when they are issued with a minimal sum, such as $1.00). Furthermore, the business is a legal entity or “person”. In particular, a company is separate from its owners (its members/shareholders) and the persons who run it (its directors).

If we take a more general view and assuming that the directors have behaved with integrity (and particularly did not allow the company to take on debts in a time they were aware that the business could not pay its debts in the time when they were due) as well as assuming that the owners or directors of the business have not or otherwise provided personal guarantees for the company’s obligations or debts that means any personal property of directors as well as the owners of the shareholders aren’t at risk of (and consequently secured by) those who are the creditors of the business.

4. “Impression” is a song that was filmed on people who are not their

A lot of times (rightly or incorrectly) people from outside are more impressed by the incorporation of a name for a business (ending with, for instance “Pty Ltd”) rather than a simple corporate name that is registered. First of all, those who are well-informed’ realize that it is more costly to establish a business rather than just registering the business name. This is why a stronger impression of “seriousness” can be a result of having an Australian business.

5. Tax

Individuals (including those who trade under a corporate name that is registered) are taxed according to the typical marginal rates of tax with the highest tax rate (as as of July 1, 2013,) being 47 percent (including the 2 percent Medicare tax). However, Australian companies are taxed at a flat corporate tax of percent (as as of 1 July 2013). However, this doesn’t mean that businesses will pay less tax. Why? Because personal tax rate is based on an uni-directional scale and contain the tax free threshold for initial income. However, businesses are taxed starting from the first dollar of income and have no threshold for tax-free profits. In addition, they might (or might do not) deductions that individuals don’t. Additionally, it is possible to be a little bit of trap for companies regarding taxes on capital gains. Why? Since companies are taxed on all assessable capital gains, while individuals and trusts are able to receive 50 percent from their gains without tax. Furthermore, there are new tax rules for “personal service companies” that could, for instance, cause a business to not being eligible to get a tax deduction on the wages it pays to an ‘associated employee (e.g. the spouse of the sole director or shareholder). All of this is dependent on the other factors and you must consult an accountant for more details on this.


6. Own property, and deal in in the names of business

There are a variety of reasons why it is beneficial for individuals to own assets or engage in business in the name of their business rather than their personal name. Additionally, Australian company law now permits a ‘one-person company’ which is, a business that is owned by one person as the sole owner (shareholder) as well as a director. In saying this however, one must always remember that a company is an entity separate from its owners & directors – it must not simply be treated as an ‘alter-ego’ of its owner(s)/director(s).

7. Attracting capital investment

Businesses may find it easier to secure capital or investment as opposed to a partnership. Why? because (passive) investors are certain that they won’t be legally required to make additional contributions to the business (i.e. in addition to the amount they already paid, or have already agreed to pay for their shares) should the company is facing financial trouble (see “Limited liability” above). However, if these passive investors contributed equity funds to a company that is run by a partnership, and then become the’silent partner’ in that partnership will likely be at risk of, and accountable for the obligations of the partnership. This is especially relevant when the company or partnership is in financial trouble.

8. Transfer of ownership and control

For companies that are limited through shares, just the presence of shares can facilitate the possibility of selling the business (either completely or in parts). Why? Because shares of the company could be traded (either every one of them or just some). Share capital is also a great way to facilitate the entry new owners (either through existing shareholders moving the entire or a portion shareholdings to shareholders who are new or through the company issuing shares to shareholders who are new).

A company structure permits any desired changes to the day-today management of the company’s business operations (i.e. in the event of the resignation of all or a portion of the directors in the company and the appointment of replacement directors or more directors).

9. Perpetual succession

A company’s existence is perpetual (unless liquidated) regardless of the death or retirement of its directors, managers and owners/shareholders.

10. Sometimes you simply ‘need’ a company

Example 1: You’re an individual contractor (e.g. or an Australia Post courier) operating as an unincorporated sole trader with the terms of a fixed term contract. The contract is due to expire and then will be renewed. It is possible that your employer changes its policy so that they will just renew the contract when you are an incorporated person’.

2. You choose to give your job as an employee to start a business on your own. You decide that your first venture will be an franchisee (for instance, as mortgage broker or the owner of a hamburger or pizza shop within a chain of companies). But you might find that the franchisor can only permit you to buy franchises if you first establish a business and purchase and/or manage your new business in your name as a corporation.