If you are in the process of purchasing or starting your first business it can be an exciting time but also one that is fraught with concerns and worries. Not so many worries about whether your business will be successful, as we would hope you are well prepared to make that happen. Instead, the worries we are talking about are trying to ensure your get all the legalities right to ensure that you comply with commercial law.
One of the best ways to allay any concerns you have is to seek out an established commercial lawyer who can advise you not just how to ensure your business opens with all the legalities in place, but also your compliance continues as your business grows. One of the areas of commercial law they are likely to advise you upon first is company compliance.
Company compliances are those legal tasks which every business has to adhere to, and whilst the details of them might not seem the most exciting, they are essential if you are to remain compliant with commercial law in this country. To further that cause here are three tips you should follow to ensure you adhere to what is legally required of you.
Select An Appropriate Registered Office
Although this might not seem like an important choice, as it is going to be the office where you receive all of the most important legal documentation related to your business, it is most certainly worth taking some time to get the choice right. Each business will have its particular needs, and for some, the location where the business operates can just as easily be its registered office.
However, there are also businesses where having its registered address separate from its usual business premises would make sense. An example would be a business where its owners and staff are on the road most days and only visit the office sporadically. Another would be a business that the owner operates from home, but does not want their home address to be the business’s registered office.
Always Keep The ASIC Updated With Important changes
There ASIC (Australian Securities and Investments Commission) should be kept updated of any key changes relating to your business given that it is a legal obligation upon you as a business owner to inform them within 28 days of these.
Applicable changes include your registered office, your place of business, shareholder changes, and changes of directors. There is no cost related to informing the ASIC so that means there should be no reason not to. However, should you fail to inform them of changes within the stipulated 28 days you will incur a late fee of $80 which rises to $333 if you are late by more than one month.
Ensure Your Annual ASIC Statement Is Complied With
Each year the ASIC will send you your annual statement. This will include the annual fee payable to the ASIC and as part of the process, you will also need to confirm that the details the ASIC hold concerning your company are accurate and up to date.
A further obligation the annual stamen imposes is for the directors of the company to pass a resolution that confirms they believe the company is solvent and thus able to pay any debts by their due date. If within 12 months of the review date you have not paid the required annual review fee, you risk having your company deregistered and thus legally ceasing to exist.