13 Oct Starting a New Company:
With a New Year come new challenges and new possibilities. Whether you’ve got a great idea for a start-up business or need a property holding company to protect your investments, there are a number of choices that your lawyer should guide you through. Simply registering a business name does not offer the same protection as incorporation and organization in accordance with the Business Corporations Act.
One of the first hurdles to overcome is choosing a name. This requires reviewing government search records with your lawyer to ensure your name is available for registration and is not too similar to an existing name. Setting up an appropriate share structure with specific voting rights and transfer restrictions can aid with tax and succession planning. If there are multiple shareholders, a Shareholders Agreement governing the operations of the company and shareholder rights is highly recommended. You should also be aware of the roles (and potential liabilities) of directors and officers. Finally, having appropriate organizational resolutions to set up banking, organizational structure, accounting and official internal procedures for the company is required. It is wise to have your lawyer guide you through this process to ensure you get your business off to the right start and are in compliance with legal requirements to avoid penalties or liability. For a free consultation, please contact us.