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SMSF Trustee Company Formation (Proprietary Limited) | $598.00
Setting up an Australian SMSF trustee company is quick and easy with ABNAustralia.com.au. Register your company online today and receive your ASIC certificate of incorporation, company constitution, and all other company documentation electronically within 1 business day.
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From the Knowledge Base

What is a SMSF trustee company?

A superannuation trustee company acts solely as a trustee of a regulated superannuation fund. Refer to s19 of the Superannuation Industry (Supervision) Act 1993 for more information. The company's constitution must prohibit the company from distributing income or property to its members. A SMSF trustee company is a proprietary limited company.

Under Australian law, a proprietary limited company (abbreviated as 'Pty Ltd') is a business structure that has at least one shareholder and no more than 50 non-employee shareholders, where the liability of shareholders is limited to the value of shares. The company must have at least one director who is resident in Australia, and there are restrictions on the company’s ability to raise funding from the public. Proprietary limited companies are the most common type of company registered in Australia.

Do you provide SMSF establishment advice?

We do not provide accounting or financial advice in relation to the setup of your self managed superfund. Please speak with a professional advisor who can instruct you.

SMSF Trustee Structure Requirements

The Trustees control the SMSF and make all the Investment decisions for the SMSF. The Trustees are also responsible for complying with all legal obligations including ensuring that the SMSF prepares and lodges an annual tax return with the ATO. It is important to understand that the SMSF Trustees do not own the SMSF but are simply responsible for the administration, investment and operation of the SMSF.

The Members own the SMSF. Importantly the SMSF Members have a proportional Interest in the SMSF Assets based on contributions and Rollovers made to the SMSF. This means that if one Member contributes 100% of monies to the SMSF and a second Member contributes no monies, then the Member making the total contributions to the SMSF will own 100% of the SMSF. SMSFs can have a maximum of 4 Members who must all be Trustees.

What if I only want one person in the SMSF?

It is a legislative requirement that where an SMSF has individual trustees, it must have a minimum of 2 individual trustees. Almost anyone can be a trustee ofana SMSF including a spouse, adult child, parents and friends as long as they over 18. If you cannot find a second adult Trustee or you have decided you do not want a second adult trustee involved in the SMSF and you solely wish to be the SMSF trustee then the only option is to establish a company to act as trustee for the SMSF.

You will, in turn, be the sole director and shareholder of the company giving you total control of the SMSF. A disadvantage of having a company trustee is that there is a cost to setup a company as well as ongoing ASIC fees.

Why would i use a company as a trustee?

Reason 1: You only have one person

There are times where a client only wants to establish a SMSF for one person and does not want a second Individual Trustee. In this instance the only option is to establish a Company to act as Trustee for the SMSF.

Reason 2: You are worried about what happens when a Trustee leaves the SMSF or dies

If you have Individual Trustees and one Trustee leaves the SMSF or dies you cannot continue the SMSF with only one Individual Trustee. To avoid this issue some clients setup a Company to act as their SMSF Trustee. However this is unnecessary because if you have two Individual Trustees and one person leaves or dies you can simply appoint a new Individual Trustee who is over 18 (eg. child, friend, parent, spouse etc.) at that time. Alternatively if you are left with one Individual Trustee and cannot find a second Individual Trustee, you can appoint a Company Trustee at that time and the SMSF can continue in the normal way.

Reason 3: Avoiding the need to update Account Names

When you add or remove Trustees in your SMSF, you must update all the accounts that the SMSF has. Accordingly if you have Individual Trustees and a Trustee is added or removed then the Broker Account, Transaction Bank Account and all other accounts the SMSF has, must be updated with the details of the new Trustee. This is not necessary with a Company Trustee as the Company always remains as the Trustee even if the underlying Directors and Shareholders of the Company change.

Reason 4: Some lenders will only lend to SMSFs with a corporate trustee

The Commonwealth Bank and certain commercial lenders will only lend to SMSFs established with a corporate trustee.

Do you provide a constitution specifically for SMSF Trustee companies?

We take a flexible approach to our company constitutions meaning that you can choose to use your registered company and constitution for the sole purpose of acting as superannuation trustee, or, you can use the company to also undertake other activities. If you have an existing established company you can nominate this company to be the Trustee of the SMSF - however, we recommend you seek advice as to whether using an existing established company is appropriate to act as Trustee for your SMSF.

How much does registration cost?

We offer company registration starting from $598 (including GST and the $488 government fee).

Note: You can register with ASIC directly. However, they will not provide you with the documentation you are legally required to have to ensure you’re compliant. The process also takes several days (as opposed to our process, which we aim to complete same day).

Annual Review Fees

Special purpose companies qualify for reduced annual review fees of $49.

Established in 1976, ABN Australia has helped more than 100,000 businesses choose and establish their preferred business structure here in Australia. Our longevity is a testament to the high level of customer service we provide, and the wealth of experience we bring to the table.

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