Company and Trust Registration

Alder IP is experienced at registering Australian Companies via a streamlined ASIC process. We can provide expert legal advice as to the best company structure for your business. We can also provide assistance in the set out of Unit or Discretionary (Family) Trusts, if required.

There are a few benefits with company registration including:

1. Limiting your personal liability
   For sole trader businesses, you are personally responsible for all aspects of your business, including any debts and losses incurred by the business. If you sell a defective product, cause an injury to a third party during the course of your business, you will be personally liable without company registration. This can result in the loss of all your personal assets such as your car and home. Company registration brings into existence a separate legal entity that may act as a firewall to protect your personal assets from your business misadventures.
2. Minimising your tax liability
   In Australia, the current tax rate for companies and small business is lower than the highest tax rate for an individual. This may reduce your tax liability to the ATO. Sole trader businesses are typically taxed at the same rate as an individual or personal tax rate. If your personal income is at a relatively high marginal tax rate, registering your company may significantly reduce your tax burden. Additionally, some small businesses may be entitled to a range of tax deductions for advertising, education and training, and repairs and maintenance, that are not claimable by individuals. Additionally, grant applications may be easier to obtain. Please note that we always recommend additional financial advice from a CPA prior to making decisions about tax or financial decisions.
3. Minimising arguments between Directors
   Registering a company reduces the risk of disputes with the founders. The act of registration helps formalise the rights and obligations of the founders and divides them into shareholders and directors. Registering a company helps founders identify their roles in the company and thereby reduces arguments and disputes. We recommend the additional use of constitutions and shareholder agreements to help the founders of a company.
4. Professional Look to Your Business
   Most successful businesses are eventually incorporated. Registering your company generally improves the professional look and feel of the business. Becoming a registered company assists in future dealings with third parties who may be consultants, suppliers, distributors or logistic specialists.
5. Increased Attractiveness to Investors
   Company registration is recommended if you are trying to attract third party investment in your business. It allows investors to understand what it is that they are investing in. Company registration in Australia is governed by the Corporations Act.