Australia is the driest and flattest continent in the world. This diverse country has a wide variety of tropical rainforests, deserts, mountain ranges, and landscapes. Australia gets the 14th-largest economy in the world, making it a highly-developed country. If you want to join the booming industry of the business sector and considering starting a company, make sure to register a business in Australia, so you start everything right. While registering your company may be a big step, know that it comes with lots of benefits.
Brand Awareness and Legitimacy
If you think of the most popular brands in the world now, all of them are registered companies. Therefore, if you want your company to be expansive and thriving as them, you will want to have a company structure. Registering your business increases the awareness and reputation of your company. With this, you are accountable to the guidelines of ASIC and run your business under an ACN (Australian Company Number).
A registered company is also crucial when dealing with third parties in the future. This is because other companies only engage or hire another company that is registered. Your company is your own entity, wherein it operates from you separately. In other words, you will use your company name on your business contracts instead of your name.
Prevent Conflicts with the Founders
In case of a conflict with a cofounder, registering your company helps in this situation. If you register a business in Australia, the owners can only control the number of shares they own. All the owners of the company will agree that their investment in it is not through any written or verbal promises pre-registration. If a dispute transpires, the allocation of shares will help determine who has the most power when it comes to making decisions.
Additionally, running a business allows you to separate its management and ownership. For example, your company has many shareholders, but you can hire managers who do not own shares. By doing this, expert professionals can help you run your company and focus on making profits for all the shareholders.
You Can Reduce Personal Liability
As for sole trade or partnership, you are accountable for every aspect of your company, including losses and debts. If you make a mistake, such as sell a defective item, you are legally responsible for it. Operating in this manner has higher risks and you are also putting your personal assets at risk. However, if you register your company, it becomes a legal entity on its own. It is an effective way to protect and separate your personal assets from all the business transactions you make. It also means that the debts of your business will not attach to you personally.
You Can Reduce Personal Liability
As for sole trade or partnership, you are accountable for every aspect of your company, including losses and debts. If you make a mistake, such as sell a defective item, you are legally responsible for it. Operating in this manner has higher risks and you are also putting your personal assets at risk. However, if you register your company, it becomes a legal entity on its own. It is an effective way to protect and separate your personal assets from all the business transactions you make. It also means that the debts of your business will not attach to you personally.
