If you plan to start a Company for your business, you will need register a Company and get an Australian Company Number (ACN). You will also need to obtain a director ID which is a unique identification number for acting as a director. Companies are the most widely used business structure as it has taxation and legal benefits.
As with individuals, it is necessary to establish whether or not a Company is a resident of Australia. A company is a resident in Australia if:
- It is incorporated in Australia, or,
- It is not incorporated in Australia, but carries on business in Australia and as either its central management and control in Australia, or its voting power is controlled by Australian resident shareholders.
When it is registered, a Company is taxable in its own rights. A Company is normally required to lodge a Company tax return, by the date on which it is required to pay its final tax liability as per company tax rates.
The full company tax rate is 30%, but if you are a small business the company tax rate is 25% from income year 2021-22 onwards.
If you would like to discuss with us more about your circumstance or register a company, please feel free to call us on 0452214559 and we shall assist you.