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How much does it cost to setup a company name?

Discussion in 'Accounting & Tax' started by Zak, 13th Jan, 2016.

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  1. Zak

    Zak Well-Known Member

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    How much does it cost to setup a company name in Sydney?

    Does it need to be done by a qualified accountant?
     
  2. Redwood

    Redwood Well-Known Member

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    You mean a standard company? ASIC charges just over $460 however you will need to use a document provider to assist, search online. Go to asic.gov.au and check name availability first and you may need a ABN/TFN as well depending on purpose of company.

    Cheers Ivan
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Terry will tell you it needs to be a lawyer because he is one, but my accountant set mine up.

    Do you just mean a trading name, because that can be setup for like $75 or something on the gov website.

    Or do you mean an actual company entity? This is a fair bit more as Ivan pointed out.

    You'll probably need advice on both:
    A) what structure you should use based on what you're planning to do , and
    B) which people should fulfill which roles within that structure
     
  4. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @Zak ,

    @D.T.
    has raised an important point for you to consider.

    There is company set up, which gets you a PTY LTD.

    Let's say you call your company "ABC PTY LTD". You can start trading under that name, but any signage, business cards etc need to feature the PTY LTD notation. You cannot just note ABC.

    If you want to put just ABC on your signage etc, you would need a trading name also (now referred to as business name).

    A business name is tied to an ABN ; of either a company (pty ltd) or a sole trader. If you do not require a company you could set up a business name and tie it to a sole trader ABN.

    It would be a good idea to have a conversation with your accountant about the nature of the business, likely turnover, any asset protection concerns etc because the accountant might suggest a slightly different arrangement for your circumstances.

    Once upon a time, business names were unique by state, but now it's a national thing. If someone else already has a business name or company name already registered under the name you wanted, you can't have it. If you want a business name called ABC and either someone already has a business name ABC or company name ABC PTY LTD, then you're desired registration will not be possible. Pick another name.

    Business names registration info is here;
    http://asic.gov.au/for-business/registering-a-business-name/

    Remember you cannot register a business name without a valid ABN, so if you are going the company setup option, you will first need to set up the company, then get the ABN, then order the business name.

    If your accountant is setting things up for you, he/she will likely order the ABN and Tax file number for the company for you.

    More about ordering ABNs is here;
    Applying for an ABN | Australian Business Register

    More about how to set up a company is here;
    http://asic.gov.au/for-business/starting-a-company/how-to-start-a-company/
     
    Last edited: 13th Jan, 2016
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Lol

    Only a lawyer can set up companies because it involves legal advice regarding the Corporations Act and accountants cannot give this advcie. Director duties, separate legal status of companies, shadow director issues (could you spouse be deemed a director), insolvent trading, directors being personally liable, succession etc etc. All legal advice.

    I charge $1100 including written legal advice and ASIC fees. If you don't want any advice then easy to set it up online for about $500
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    That's a bit misleading isn't it?

    That's like me saying only property managers can find tenants because the residential tenancy act needs to be followed.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    no.

    Property managers can advise on tenancy laws because of the state legislation. Tax agents can advise on taw law because of the Tax Agents Act. But tax law doesn't include the corporations act.
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Where a tax agent is performing only an administrative function without giving any advice or drafting they could possibly set up a company, but so could a hair dresser.
     
  9. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    A tax / Bas agent yes. A qualified accountant no. I must have studied and passed a course in company and commercial law to attain prof accounting qualifications. ASIC allow me to register as an ASIC agent and require either legal or accounting qualifications. Its akin to saying I cant advise on tax as I didn't study law...I did. Tax + commercial Law. Both mandatory and each course must be an approved course. (Migrants can do those subjects to bridge !!)

    I can advise on areas for which I am qualified and insured. When someone asks about a area I am not qualified to advise on, I refer them. I can give general limited advice on Corporations Act matters such as insolvent trading. This role expands further for all the accountants who are insolvency practitioners and liquidators. Not required to be a lawyer but it may assist however. All liquidators MUST possess accounting qualifications and experience for ASIC to approve them. A solicitor cannot become a liquidator without also becoming qualified in areas that are accounting etc....The accounting bodies regulate this not the Law Soc.

    See ASIC Reg Guide http://download.asic.gov.au/media/1241033/rg186.pdf?_ga=1.30171647.1962881023.1405566483

    Admittedly an accountant cannot advise on some of the legal issues you mention Terry. However you imply that only a lawyer can define financial reporting issues according to accounting standards. All that is contains in Corps Law too....
     
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  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I must say I disagree Paul. Insolvent trading has a tax aspect which you could advise on but a also personal liability aspect which would be legal advice. Just because a course is taken during study doesn't give authority to advise on that topic, it would be part of the curriculum for knowledge and because it is an overlaping area, but just because you study commercial law doesn't mean you can give legal advice in this area.

    If setting up a company for someone how do you give advice on director duties?

    99% or more accountants would disagree with me on this.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    That almost sounds like the architect vs builder vs engineer argument about design of structural components of buildings.

    Artichokes & builders can't calculate the loads imposed by structures but can read (usually) & apply span tables & Australian Standards for lintels, beams, archbars, bearers & joists.
     
  12. JacM

    JacM VIC Buyer's Agent Business Member

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  13. Blacky

    Blacky Well-Known Member

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    I think you just contractided yourself?

    Only a lawyer can give advice on companies.
    However, once you have obtained advice, your accountant can set up the company.

    If you felt so oblidged you could set up a company yourself - by completing the required documents...no?

    Blacky
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, I don't really think a company could be set up by someone who is not a lawyer as questions are asked and the replies would be legal advice. If a client emailed in saying i want a company set up, the director is X, the shareholders are Y then there may be no advice and a non lawyer could possibly set it up.

    A company could be set up by filling in ASIC forms or by using an online provide which would be safer. There are various other documents needed such as consent to be a director etc which may be missed if you just fill in the ASIC forms.
     
  15. Bran

    Bran Well-Known Member

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    You said a company NAME - do you mean a setup a company, or do you wish to register a business name?

    If the latter, I paid my accountant about $300 because I gave up trying to navigate the ASIC pages myself.
     
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  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Inferior (sic) designers = architraves
     
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  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Or you can save yourself the hassle and buy one off the shelf setting up the trading name.
     
  18. Blacky

    Blacky Well-Known Member

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    This is pretty much what I did. I spoke to my accountant in regards to different tax strategies in regards to ownership/distrubutions etc.

    Although Im not an accounant or lawyer I probably have a higher level of general understanding of such matters than the average punter.
    I didnt speak to a lawyer for any of my company set ups.

    Blacky
     
  19. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I agree on the personal liability aspect. I would always refer someone for the legal advice where any exists for liability eg a Directors Penalty Ntce, insolvent trading etc. Another area is wilful disclosure and needing to avoid admitting liability to a tax issue !! Its often a area for a tax law specialist to take on. I have seen many tax agents admit to failure to lodge in objections to a penalty for failure to lodge etc - Not a great way to object by admitting liability for your client.

    I see it like a GP vs a specialist. You start with the GP and end up seeing a specialist. Its doesn't mean I cant refer to the general concept and give initial general advice that includes the obvious - You need to see a lawyer.

    Same reason I often refer tax problems to specialists. One my best referrals was to a tax law specialist who had a 8 year stale matter led by another lawyer heading to court resolved and settled in 2 weeks. While it was a tax matter it needed a negotiated end. One of the best skills any professional can gain is to know when to not act and who to refer a complex problem to.

    The company setup I use comes with a comprehensive "guide" to Directors roles, responsibilities + duties and a direct number for the law firm for any further questions. I have prob had two or three clients use that service (that I know about) and if its a quick one its free but if its complex they charge directly.
     
  20. Zak

    Zak Well-Known Member

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    Blacky - could you please explain what you mean by different tax strategies regarding ownership? iam guessing you are referring to the structure of ownership for various shareholders in the company?


    Terry W - i thought a company dont have any specific structure. It is just distribution and % of ownership by various shareholder?


    Paul - if i were to setup a company with an accountant what is services is included in the fee? does one just pay an accountant to register a Company name and thats it?


    also thanks all for your knowledge,.