How to Start a Company in Australia

Do you have a brilliant business idea and want to start trading as a company? Or are you a sole trader who's now ready to move to a company structure?
Then this video is for you! I'll be running through EVERYTHING you need to know about starting a company in Australia.
SHOW NOTES:
00:00 - Intro
00:45 - What is a Company?
01:26 - When Should I Set Up a Company?
02:06 - Registering a Company with ASIC
03:02 - The Pros & Cons of Setting Up a Company
03:55 - Checklist of Things You Need to Set Up a Company
04:34 - Working out Shareholder Rights
05:04 - Important Documents to Keep
06:10 - Necessary Registrations and Insurance
08:26 - Company Director's Requirements
08:47 - Final Tips
Link to my video about insurance for small businesses:
• Types of Small Busines...
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Thank you for watching this video. I post weekly videos on this channel to provide the latest and most frequently asked business questions. Please take a second to say hi in the comments below. Also, if you enjoy my comments and find it valuable, subscribe to the channel, like and share it with anyone who you think might find my channel useful!
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► Subscribe to my channel here:
/ daviemach
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Davie has over 14 years of experience in advising businesses in management accounting and taxation issues. He heads up a passionate team at Box Advisory Group who are dedicated to offering proactive and outstanding service to our clients.
Davie’s extensive experience in providing tax and consulting advice and astute business knowledge has paved the way for success for many businesses.
He is a member of the Chartered Accountants Australian and New Zealand, a member of the Australian Tax Practitioners Board and holds a Bachelor of Commerce degree from the University of New South Wales.
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Follow Me:
LinkedIn: / davie-mach
Instagram: / boxas_syd
Facebook: / boxadvisory
Website: boxas.com.au/
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DISCLAIMER: Please note that every effort has been made to ensure that the information provided in this video is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to contractors and small businesses. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek your own advice for any legal or tax issues raised in your business affairs.

[@angieg9361]

Oh! I love this channel you have started! I've subscribed and im going to click the bell for notifications, hopefully one day my business will be big and I can use your company for ongoing services. Thank you so much :-)

[@DavieMach]

Thank you so much for watching :) Work hard! You got this!

[@marcussvedin5063]

You got this! What services do you offer?

[@EdL2814]

Excellent video, as always! Thank you for the helpful info!

[@varuninnz]

I love your work man. It's so to watch these videos before seeing an accountant.

[@teodoragarbo7296]

keep watching all your vid. short and simple yet very informative. Thanks bro.

[@JasonWilliams-jd5qn]

Not sure why this channel does not have at least 20k subscribers. Awesome content keep up the great work love the mix of formal information and your personality.

[@DavieMach]

Thanks Jason. Haha, yes praying to the youtube gods for more subscribers!

[@ericmorris1056]

Cheers man was clear and short in time great job 🎉

[@bobiscute5693]

Great video and series and so helpful for navigating through the web of what to do to commence a business. Thank you so much David!!! Invaluable!

[@DavieMach]

Glad it was helpful! Thanks for watching!

[@flash89music]

great video thanks mate very insightful

[@scarlettnguyen9627]

Wow so lucky to find you !!! Amazing channel with great knowledge ❤️

[@DavieMach]

Thank you, Scarlett! Glad you enjoy my content :)

[@warren7565]

Very well explained. The best so far by a long way

[@DavieMach]

Thanks :) I tried to make as easy as possible to understand

[@janenes2782]

lol fun ...your funny! Thank you this information is so helpful, the checklist is what I've been looking for.

[@anad6448]

Such a useful video for us Aussie sole traders!! Thanks! Subscribed :)

[@DavieMach]

Thank you for subscribing Ana! Glad you found the video useful :)

[@karenfung9176]

Thank you very much for your advises. It helps me a lot of how to set up a small business.

[@DavieMach]

No problem Karen :) all the best in the new business

[@Maya_s1999]

You sir helped me so much. Thanks a million!!

[@DavieMach]

Glad to hear that, Queen! Thanks for watching!

[@rorybrady4551]

I love your videos. Expert teaching style.

[@DavieMach]

I appreciate that!

[@LtCheetah]

That first joke had me subbed instantly! You're a legend, cheers for the advice!

[@DavieMach]

Glad it helped, Blake!

[@sadhna1gaurav]

Good summary Davie! Thank you

[@DavieMach]

Glad you liked it!

[@mightykarma3815]

I love how fun you have made this ❤️

[@DavieMach]

I hope you learned something from it! Thanks for watching!

[@marcussvedin5063]

100%! I won't be able to do it myself.

[@the_shergill]

a very detailed video. Thank you.

[@DavieMach]

Glad it was helpful!

[@jackcunnah9468]

Excellent always sunny reference, I have followed you because of it! Haha

[@DavieMach]

That's great! :)

[@maegodragon]

Educational but also Super Funny!

[@DavieMach]

Thanks for watching, Karl!

[@moeyhamdi3489]

You are great n I love ur videos n learn so much from it

[@DavieMach]

Cheers mate!

[@SIGMA_CENTRAL_IKON]

Excellent information and great breakdown of business company ownership concepts in Australia. You have won yourself a new subscriber 😂.

[@jorwelmaszniew6743]

bahahah yo got me there! instantly subscribed 🔥

[@DavieMach]

Thank you :)

[@shabbirali2557]

Great video mate learn about Australia a lot

[@DavieMach]

Glad you enjoyed it, Shabbir!

[@shabbirali2557]

@@DavieMach can you make video on how will foriegn people can get abn in australia?

[@sha514]

Great info

[@DavieMach]

Thanks for watching!

[@HodlXPro]

Awesome Davie, very informative. Thank you

[@DavieMach]

Thanks for watching Sam! Glad you found it helpful :)

[@Carorca2]

Great video

[@DavieMach]

Thank you!

[@user-vg3nq6hn8l]

Your a good guy Davie

[@jamesmathou623]

great video

[@DavieMach]

Glad you liked it, James. Thanks for watching.

[@markalexanderrivers]

Thanks so much for this info. Is there any chance you could make a video explaining how one might go about moving personal financial investments (shares, crypto etc) from a personal portfolio into a newly set up corporation?

[@DavieMach]

Its hard to do a video on this as every clients situation is different. I also dont want people to try doing it themselves as it could cause significant costs and issues if done incorrectly. Transfering assets from personal name to a company or trust can result to significant capital gains, stamp duty and tax. I would recommend chatting to an accountant to discuss the restructure strategy. Sometimes the restructure will be way too costly....

[@czj6889]

thanks for sharing the great knowledge , by any chance you can share some info of how to trun solo trader ABN to an company?

[@alexisribault1386]

Very interesting, thank you it is really informative. I am wondering if you could cover businesses for day traders / investors in the stock market, and how the gst, as well as how turnover works when buying and selling shares, it would be awesome.

[@DavieMach]

Definitely on our to do list ! Thanks Alexis

[@alexisribault1386]

@@DavieMach great, looking forward to it

[@gregmorris1896]

Thankfully I live in Canada where corporate tax is only 12%.

[@FREEDOM-GETSOME]

Love the introduction lmao

[@cherryzhang5078]

Love it! Thanks. Question_ can the director, public officer and share holder be one person?

[@DavieMach]

Yes they can :)

[@saramuthu6690]

It’s great sharing your professional knowledge with the layman’s like us. One of my friends who is employed as a General Practitioner got a sole proprietary company registered for the past 10 years. He has been paying company taxes average $60000and personal tax 16000 annually. Now he is reaching the retirement age of 70 and want to dissolve the company. The company financial assets estimated to be $800000. He has used part of his own house as the company location. He has been selling his services to another practice 20 miles away. Q1. How does he dissolve the company if he is to retire in Australia. Q1.1.How does he distribute company assets to himself (and possibly his wife too )on retirement? Q1.2.what kind of taxes involved to ATO (as he has already paid tax) for the accumulated funds in the company name over 10 years . ($800000) Q2. How does he dissolve the company if he is retiring overseas ? Q2.1.Does he pay taxes to ATO on the $800000 funds to be distributed to self ( possibly wife too). Q2.2.Is it a must to sell his residential house and investment house in Australia when he retire overseas ? Q2.3.Must he close his bank accounts in Australia when he leave Australia as a non resident? Q2.4.Must he give up the citizenship in Australia ? Q3.At the moment his wife is not a share holder of his medical business Can wife be added as a shareholder now and when dissolving can assets be distributed to both shareholders of the company? Appreciate very much this useful information in public or in private on e mail [e-mail]. Thanking you.

[@DavieMach]

Hi Sara, it’s best to seek professional advice as a range of variables can affect the end result here.

[@MitchNorris]

Thanks for sharing all this knowledge! Quick question, do directors have to be paid?

[@DavieMach]

No, directors don’t need to be paid. In the first year that’s quite common if it’s a startup! Thanks for watching

[@COLDoCLINCHER37]

Hey, awesome video. I'm just wondering should I setup a business bank account first before registering a company? Or register the company first

[@DavieMach]

definitely register a company. You wont be able to create a business account under the company unless the company is registered first.

[@zakariyahel2505]

Hi Davie what would I do if I wanted to start a clothing business for my dj stuff as an example of were I wanna get to In the future would be like lv or designer clothing

[@saramuthu6690]

It’s a great privilege having listened to your professional demo . Appreciate very much if you could advise the procedure of dissolving a company and distribution of assets($800000)to himself for a general practitioner being registered as the sole proprietor 1) when the sole proprietor retires in australia at the age of 70? 2) when he retires in overseas ?what happens to his residential house and investment house in this case ? Await your response please

[@M.-.D]

Great question.

[@DavieMach]

Hi Sara, it’s best to seek professional advice as a range of variables can affect the end result here.

[@jackmagee6688]

Hi Davie, great videos, very informative, thinking very seriously setting up a small company, but I am employed fulltime. Can I be employed, but also run a separate business, not related to my current role? That way, can start small.

[@DavieMach]

Of course, you can be full time employed and be a director of your own company however depending on some employers they may require you to disclose it to them. You need to check your contract (if you have one).

[@jackmagee6688]

@@DavieMach Hi davie, thank you, Thinking , If the company starts making money, I will put it straight back into the company, keep my job going, then I won't get the "second Job" tax?

[@DavieMach]

@@jackmagee6688 Hey Jack if the company makes money the income is derived in the company and not in your personal name. So you wont get taxed in your personal name for the income you made in the company. However you will have to pay tax in the company at 26%.

[@marcussvedin5063]

I learn a lot from reading this thread.

[@arnavboghani6313]

could I setup a company and record my personal income as income from the company to avoid tax?

[@falefatufelloyedtoalima1311]

I want to start my own company but I need directions

[@dubogaming4842]

Very good explanation mate. As you mentioned, we need a registered office address but what if the person is a tenant and has no property under his/her name. Can we add the same address we are residing in as tenant and does it requires any authorization letter from the land lord?

[@DavieMach]

The landlord must allow you to occupy the address. If you have a valid tenancy agreement that should be enough.

[@dubogaming4842]

@@DavieMach thanks for your reply

[@AnthonyLoung]

I have a sole trader abn but wanting to go company, do I have to create a new abn for the company as well?

[@DavieMach]

Hey Anthony, Yes you do

[@valexandra6006]

Thanks for this informative video! I'm just wondering can a PO box be the registered address, and can the owner live outside of Australia?

[@DavieMach]

Hello No it can not be registered PO Box and yes the shareholder can be outside of Australia

[@valexandra6006]

@@DavieMach ​Thank you Davie! Do you know if the owner has to be an Australian citizen or PR?

[@DavieMach]

@@valexandra6006 The owner doesnt have to be australian citizen or have PR

[@joshallegedly2137]

I have a question, does the new company entity register for GST?

[@DavieMach]

Only if you believe it will turnover 75k in income

[@cocomidnight]

Great video! What if the place of address is my home?

[@DavieMach]

It’s fine but FYI the public can search and find the company address (through a paid search).

[@cocomidnight]

@@DavieMach That’s annoying!!

[@montero7980]

Dear Davie, Is it possible to create an Australian LLC for non-resident? If yes, so how can I apply for ABN and TFN? And do I need for registered agent to get a physical address in Australia? I will be appreciated if you inform how a non-resident foreign can make an LLC in Australia. Thanks!

[@DavieMach]

Yes a Australian Company can be owned by a non resident however you need an Australian director. Check out the timestamp at 8.26

[@montero7980]

@@DavieMach could you inform me please how to start setup an LLC? Thanks!

[@Chris-xu6wy]

hi great video thank you. My wife and i are thinking of going into a partnership structure, however i am employed full time elsewhere so i'm not sure about the tax i will pay . Our aim is to run the business full time instead of my current role. I was thinking of moving into a family trust structure for asset protection once the business is making enough money. any information appreciated. regards Chris

[@DavieMach]

Hey Chris, too hard for us to really give you any advice on this unless you book a meeting with us. Feel free to book a consultation with us. Thanks for watching

[@Chris-xu6wy]

@@DavieMach ok great where are you based? Thanks Chris

[@DavieMach]

@@Chris-xu6wy Sydney you can search us up on google if required

[@rogerbachoco345]

Hello, I'm a sole trader, but want to move to become a company. My question is, what bank is better or good to open a company business account?

[@DavieMach]

We generally recommend working with the same bank big 4 bank you are using for your personal. CBA, Westpac, St George are all generally quite good.

[@al00shi]

If you have an ABN for 10 years, you than create a company, would your company be considered new or a 10 year Old company?

[@DavieMach]

the ABN is probably your personal soletrader ABN. So once you create a new company, it will be separate and new. It is unrelated to your personal ABN.

[@silva2787]

Hey. I’m starting online company. If I make up a abn or a pty. how do I pay the taxes?

[@DavieMach]

Great job starting! It’s best to speak to an accountant as it’s quite confusing. But best to go on to the ato website to understand more :)

[@silva2787]

@@DavieMach I got my first sale do I apply for abn ASAP or wait till I get a fair amount of sales

[@DavieMach]

Hey @@silva2787 you should apply and back date to the day you started the business. Include days when you started spending money on expenses

[@stephenstephen1933]

Hi Dave, how do I get in touch with you?

[@DavieMach]

you can book in a meeting on our website box advisory services

[@Z19901000sadd4m]

can the address be a home address ?

[@DavieMach]

yes it can

[@Z19901000sadd4m]

@@DavieMach Thank you 🥰

[@ivancadelina6274]

it's funny how vloggers get more views than videos like this, guess a few only works to be successful

[@DavieMach]

thanks mate! I dont vlog but I would believe vlogging is hard work as well.

[@methos8894]

You really need to start using a better microphone

[@DavieMach]

You really need to start using better speakers ✌️

[@lukeCART1]

Step 1 you dont