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You can read through our knowledge centre to find out more about some of the issues you need to consider when registering a 'proprietary limited' company. Our knowledge centre summarises some of the key requirements and processes for registering and running a company, and flags some important obligations for officeholders.

Alternatively, simply get in touch and our expert team will walk you through the process from start to finish.

The majority of registered companies are proprietary companies. There are a few decisions to make before you register this type of company, including:

  • Choose a company name
  • Decide on the state/territory of registration
  • Choose registered and business addresses
  • Is there an ultimate holding company?
  • Choose company officeholders
  • Decide on the share structure
  • Choose the shareholders

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.

For all private companies registered in Australia, ASIC (Australian Securities and Investments Commission) requires that a local Australian resident be appointed as a director of the company at all times. This regulation is designed to help ensure that the company remains compliant with its regulatory obligations.

The director residency rule can be a major hurdle for overseas businesses wishing to establish a subsidiary or other business presence in Australia. ABNAustralia.com.au has designed a cost-effective and seamless solution, referred to as a ‘Nominee Director’. Refer to the Corporations Act, ASIC and the ATO (Australian Taxation Office) for more information on the applicable regulations and requirements.

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