subject: What Does Registering A Company Entitle Me To? [print this page] Registering a company can be done in minutes, and can have many benefits. Many companies register as a proprietary limited company as they believe that this structure is more advantageous to the companys needs. Whilst every company and its needs are different, registration can be beneficial for every business that wants to become a company. Some of the benefits of registering a Propriety Limited company are discussed below.
A Business versus a Company
Once your company is registered, you will be able to conduct business all throughout Australia. If you do not register as a company, then your business will have to register under the state or territory authority in most cases. However, the registration of a business name does not make the business its own legal entity nor does it benefit from limited liability nor a corporate tax rate. Therefore, registering your business as a proprietary limited company is advantageous.
Registering a Company
Companies should remember that if they sublet and conduct business in a name that may differ from that of the company, then the company should register the business name in the state or territory that it is performing its business in. It will still be protected under the registration of the company. In order to register as a Pty Ltd company there cannot be more than 50 share holders who are not employees and either limit shares or become an unlimited company with a share capital. This does not make sense?
Keeping Personal Finances Safe
You are entitled to benefits when you register a Proprietary Limited Company because the company is its own separate legal entity. Therefore, your personal assets will never be threatened in the case that the company goes under, nor will the finances of your shareholders. Shareholders can only lose their investment and nothing more. Since the company is its own entity it will have to pay company taxation which is based on a fixed rate. This type of income tax is 30 percent on the taxable income earned during the fiscal year.
The Transfer of a Companys Ownership
You will also be able to transfer the ownership of a company over to another party rather easily. If there is a death, a severe financial situation, a retirement or a disability, the company can be transferred over much easier than a partnership or sole proprietorship..
After analysing your circumstances, you may determine that the best option for your business is to register it as a company. Under a company registration, your company will enjoy certain benefits such as being able to use its name across Australia without having to register the name under each state or territory, a fixed company tax rate and an easy transfer of the companys title.
