subject: Easily Setup A Pty Limited Company With A Company Formation Service [print this page] In Australia, you have many alternatives for company formation. You could have a sole proprietorship, a partnership or form a proprietary limited company, which is otherwise known as a Pty Ltd company.
A sole proprietorship or partnership is a really straightforward model to get your head around, but many people dont have a hint what a Pty Ltd Company is. For that cause, many individuals look to company formation services to direct them through the pros and cons of company incorporation, to get the best type of company for their wants.
A Pty Ltd company is a legally separate body with it's own legal responsibility. It has shareholders who have limited liability for company debts. Therefore, if a company goes bust, the worst that could happen to a shareholder is that they lose their stake.
Any one individual or a group of people could setup a Pty Ltd company. It is beneficial for start-up business because of this and even because the company survives intact, even if a shareholder dies or files bankruptcy. Also, having this kind of company integration provides you bigger scope to discover shareholders as even minors could have shares in such companies.
There is a downside, however. The costs of company incorporation for Pty ltd companies tend to be higher. Also, with more shareholders, business could be slowed down and operational costs higher. You'll be taxed more heavily with this sort of company, too. Its not so simple to break up Pty ltd companies, due to the involvement of shareholders, also.
Directors of Pty Ltd companies bear a lot more responsibility as they have to abide by Corporation Law. They have to ensure all these rules and guidelines are followed, which can take lots of time and energy.
Are Pty Ltd companies worth all the extra hassle? Basically put - usually, sure they are. They have much more room for growth and development. New investors are easily attracted once you have this type of company incorporation. So, if youre up for a little additional work and putting in the money to begin with, Pty Ltd companies are a useful option for company formation.
Though, because of their intricacy, you would be highly advised to look at a company formation service to assist you through all the legal, practical and financial aspects of starting your company. They'll ensure that you have complete compliance with corporate law and also aid you with providing the paperwork to make your company incorporation easy.
