Company & Trust Administration
Company Formation
We have access to reliable company formation documentation at very competitive pricing through our registry and document platform Now Infinity. Setting up a company is a relatively quick and simple process. It is important however, that a broad range of issues be considered before initiating your new company.
Our company formation workflow includes a checklist to ensure the suitability of the company parameters for the intended purpose and context of the company. In addition, there are triggers for relevant registration and administrative requirements.
Company Secretarial
The operation of a company whether it be for business, investment or as a trustee, needs to follow the requirements of the Corporations Law and the company’s own constitution. Among other requirements, the Corporations law requires companies to maintain registers of details such as shareholders and directors, accessible on request. Most are maintained on-line these days. There is also an ongoing interaction with the ASIC which includes an Annual Company Return and notifications of certain changes to the company. Important collective decisions of shareholders or directors need to be documented with appropriate minutes.
Our on-line company administration platform with Now Infinity simplifies and automates these processes. Nearly all of our clients choose to take advantage of this platform for the administration of their companies. For a small annual fee, you can maintain your company and its registers on this platform. This service includes regular annual ASIC reporting and associated minutes along with documentation and notification of ASIC of minor changes to the company.
Company Cessation
The method of closing down a company depends on the net asset position and the formality required. Certain types of liquidation must be carried out by a registered insolvency practitioner. In situations where a company is solvent with minimal remaining assets it may be possible to simply apply for the company to be struck off the ASIC register. A more formal ‘members voluntary’ liquidation may be warranted when the company has had a trading history and potential for an unknown creditor to surface and apply to have a struck off company reinstated. In some situations, a company must be formally liquidated to access beneficial tax attributes such as pre-CGT capital profits.
We can assist you in determining the most appropriate way to close down your company. In situations where it is necessary or more cost effective to use a registered liquidator, we can arrange for that.
Trust Formation
Trusts come in a variety of forms with discretionary trusts (often referred to as family trusts) being a mainstay of private investment and small business in Australia. In recent years a deliberate focus of the ATO and Treasury has been to make trusts more difficult to operate. Teamed with delays in much needed tax reform, and a potential revenue focus on trusts by the current government, the decision to use a trust should not be taken lightly. Where appropriate it is important to use high quality documentation to ensure flexibility and avoid problems in the future.
Our trust formation workflow incorporates a checklist and procedures to ensure the trust and its parameters are appropriate for the circumstances and that related issues and registrations are taken care of. Given the dangers inherent in using no-frills document providers we source our trust deeds from reputable specialist law firms.
Trust Secretarial
Similar to companies, trusts are regulated by trust law and the trust deed itself. Decisions by the trustee need to follow the underlying documents and be evidenced in minutes. This is particularly important for documenting year end discretionary distributions. In the current taxation environment this is more important than ever with the ATO seeking to attack trusts on the slightest deficiency of documentation.
We can assist our clients by facilitating the governance of their trusts.
