The Benefits of Registering Your Company in Australia

January 25, 2020

In previous years, registering a company was a costly affair. The process was also cumbersome, making lots of business owners and entrepreneurs decide to run their companies as an unregistered proprietorship or partnership companies.

Thanks to the advent of the internet and reputable websites, you can register a company more quickly and affordably. Today, more and more companies are taking advantage of the convenience that registering a business gives.

Ease of Opening a Bank Account

When you open a bank account for a partnership or proprietorship company that has no legal proof of existence – meaning it is unregistered, know that the process is long and complicated. You need to establish the unregistered company through different tax registrations to allow you to open a bank account.

On the other hand, if your business is established and registered, you can open a bank account quickly. You only need to submit a copy of the registration certification.

Easy Transferability

Sharing or transferring ownership of a company is a severe struggle if it is not registered. You cannot move a proprietorship firm considering that it is your extension as a proprietor. It is also challenging to identify all the assets that belong to an unregistered partnership company.

On the other hand, when you register a company, it becomes a separate legal entity. Also, its liabilities and assets are distinct to its promoters. As a result, ownership sharing or the transferability of a registered company becomes easy.

Limited Liability Protection

One of the benefits of registering your business is that it can provide limited liability protection with its members. In such a case, business promoters will not be held accountable for the liabilities of the company.

Running a business often involves dealing with losses. But, with limited liability protection, it helps guarantee that the owner can handle risks without losing capital and property.

Funding for the Company

Debt or equity funding is an essential requirement for any business. You cannot syndicate equity funding if the company is unregistered, particularly proprietorship or partnership.

Also, starting a company and planning to have syndicate equity funding is not a good idea. This is because most banks and lenders prefer to give financial assistance to certified entities. Therefore, it is best to register a company if you have plans to raise equity or debt funds.

Meet Buyer Criteria

Many large companies have supplier selection criteria, and they tend to avoid doing business with an unregistered firm. Therefore, if you register a company, it enables your business to meet your buying criteria, and many other requirements set by consumers.

Hiring Employees

A company registration makes it possible for you to employ full-time employees. If you register your company with the state, you obtain a state identification number, allowing you to route taxes on behalf of the employees.

So, if you are planning to grow your business and hire many employees, make sure to take care of your business registration, even before you begin accepting applicants. As a business owner, make the most of the opportunity to register a company online and enjoy its many benefits.