The word ‘Ltd’ or the term limited imply that a shareholder is only legally bound to each and every debt or liability of a company up to the value of his shares in it. That is, if a company goes bankrupt its shareholders lose the money they invested into purchasing their shares. If a shareholder has been issued shares at less than the full price, they will need to pay for them.
An alternative to a company limited by shares is a company limited by guarantee. At these firms, members are made to accept a specific degree of legal responsibility the moment they become members. In other words, they agree to indemnify the company up to a certain liability amount.
The law distinguishes between small and large proprietary companies and regulates them differently. As of 1 July 2019, a proprietary company is large if it meets at least two of the following criteria:
As a proprietary limited company, you are bound by certain legal responsibilities. To incorporate a Pty Ltd company, as of July 1, 2019, you are required to pay an upfront incorporation fee in the amount of $495 to ASIC. Apart from that, there is an annual review fee of $267 due on the anniversary date of incorporation.
Proprietary limited companies in Australia must have registered office and principal place of business. ASIC sends documents to the registered office of the company.
A proprietary limited company is also required to have one director who does not live in Australia as his residence. The director’s duties should also be observed by directors.
Big proprietary companies are required to file and submit financial reports and directors’ reports every year. ASIC must also audit their accounts. These reports also do not need to be filled by small proprietary companies unless ASIC wants. However, they should keep proper financial records and file Business Activity Statements to the Australian Taxation Office (ATO).
As a rule, a company may operate under a business name without appending the Pty Ltd abbreviation after it. The business name does not have to be identical with the company name. In the case of a business name, you must register a business name with ASIC.
For instance, an accounting business owner named John might be operating under the name ‘John Fashion’. He may desire to operate his business as a company if it grows. To do this, he must register his accounting business with ASIC. He will also have to incorporate his business as John Fashion Pty Ltd. This will apply even if the name of John’s business is ‘John Fashion with the Austrian Tax Office.
A promissory note enables an individual (‘the issuer’) to promise, in writing, to pay a certain amount of money agreed upon with another person (‘the payee’). Although a promissory note is an easy and equal instrument, it cannot be used in every situation where you borrow or lends money. It is also not to be mixed up with a loan agreement.
A promissory note is essentially a written promise by the issuer to pay a certain sum of money to the payee under certain conditions. This payment can be made on demand or based on a future date. Promissory notes are useful when the parties involved have a good, close and trust-oriented relationship and they deal with relatively small sums of money. In these situations, the parties might prefer not to negotiate a long and complicated loan agreement.
For instance, if John loans Jessica $ 1,000 and they do not engage in the process of negotiating a formal loan agreement, they opt for an informal arrangement. For Jessica to provide John with written assurance that the $1,000 will be repaid, so she issues a promissory note to Hailey. This note reveals Jessica’s intention of paying up the $1,000 as soon as possible and provides a written proof for the agreement between them.
Although promissory notes and loan agreements are issued in situations that involve one person borrowing some money with the intention of repaying it later, they are quite different.
However, promissory notes do not have much coverage for the creditor. Therefore, in situations where heightened protection is needed, it is worth opting for a full loan agreement. However, there is a need to note that the addition of more complex terms in a promissory might make it an intricate financial product and might place it under specific regulations such as Corporations Act or National Consumer Credit Protection Act. In such situations, it is recommended to consult a lawyer to check through the promissory note and establish its suitability for your particular situation.
Before starting your own business, you need to conduct a thorough planning taking into account all the essential factors that may influence your success as an entrepreneur. Amid these factors, there are the type of business you start, partners for your business and more often than not where the location of your business is. A great idea for a business may be truly enough to achieve success, but when it comes to the actual situation, where location of his or her business also matters.
Begin by looking at McDonald’s, which never fails to attract huge audiences thanks to the strategic decisions they make regarding where their outlets are based and why investing in real estate properties is just as important as spending money on items and services provided. Nonetheless, finding the perfect location for your business is not easy no matter if you decide to rent or buy property in an Australian commercial district. It impacts your overall budget significantly, so it is vital to look for alternatives that can help you stay in a central business district (CBD) without the high costs.
This is where the idea of a virtual office in Sydney comes into its own. Well, what then is a virtual office and why has it been growing in popularity of late especially among SMEs and startups?
In the process of starting up your own business, you will have to come up with some very big decisions. A part of that decision is to decide where you want your office – whether it will be in your own home, rented office or property you have bought. You have a lot to choose from, but that selection will depend on what image you want for your business.
Try to imagine this: You decided to establish your office at home and meet with all of your business partners in an office space that can be rented on the hour or for a day. You may be networking with your clients at professional ambient places where you also hold your meetings, but the registered address of your company remains to be under the residential address. Some clients will most likely disregard this, however, most of them will probably no longer be at ease to do business with your company.
Employer of Record Hong KongAs far as the creation of a business concern is concerned, professional image becomes one major factor on which you have to work especially if your new business. As absurd as it may seem, you have to make your clients believe that your company is much larger than it is. As a result, this is how you are creating your business’s reputation, wherein in many cases, the future clients will easily entrust their businesses to your company.
But lucky for you, in today’s modern age and easy access to technology, Virtual Address is one solution that you can consider in having for your business. Don’t be deceived by its name “virtual”. Virtual Address is actually a real and true address. Most companies who provide this type of service also provide a host of other services like Virtual Receptionist, Virtual Assistant and virtual hotline numbers to enable the account holder operate their business as seamlessly as possible.
The word “virtual” means that your business does not run in a real place of the location you have chosen, but uses it virtually. A Virtual Address is created to serve as a reference point for your business – it can be thought of as a mask or cover. For instance, the marketing collaterals that you will use to build your company’s image such as business cards, websites and brochures where your business address is printed.
Virtual Addresses are used by home-based businesses or startup companies who want to appear more professional, or wants its business to look bigger than it is. Why is that so? As a start-up company, you would like to save on renting an office, especially if it is a sole proprietorship. Besides the fact that it is unreasonable, do you want to rent an office when only one person will use it? Though you are aiming at lowering your cost, you would not want to demean your company’s image, and that is where a Virtual Address could come in useful for your business.
You don’t necessarily have a physical office where you actually perform all your work, but you get the advantage of having one because your clients know that your business is located in some CBD area. They have no idea that you are actually working from your kitchen, dining room or even a coffee shop. Apart from saving your business a significant amount on its overhead cost, such kind of service gives you freedom to not be forced or kinda sit in a four-walled room every single day.
In the modern era and technology innovation, various entrepreneurs are now taking advantage of their business by having a Virtual Office in Sydney. Virtual Office is one of the options you can think of for your business if you want to start a business but don’t have great capital. Many people know that Virtual Office means you do not have to bother with overhead costs such as office rentals, buying of office equipment and supplies, and salaries of your staffs.
Technology has enabled our businesses to be run from home and manage them online. Most entrepreneurs have exploited the opportunity to operate from a Virtual Office in Sydney. After all, since Internet is so widely and actively used almost everything can be found online.
Technology has enabled our businesses to be run from home and manage them online. Most entrepreneurs have exploited the opportunity to operate from a Virtual Office in Sydney. After all, since Internet is so widely and actively used almost everything can be found online.
If you want to establish a new business, the first thing that you have to determine is in which market you are going to run your company. The question that you need to ask yourself is: Do you need to incorporate your business at a traditional address (physical address) or Virtual Address? Most likely, you wonder what is the difference between them and which benefits you can gain from it.
