5 key legal Requirements for a Business
A business starts with an excellent business Plan and ends with the implementation of the respective plan. Although, the legality of business is an important subject to take care of, in between the chaos of planning and implementing the business plan. A business being legal doesn’t only mean what you’re trading is permitted to trade under the law; however, it is essential to fulfilling the following five depicted legal requirements to impart your business a “legal” status.
Have a registered office and principal place of business
Each and every business in Australia is legal as long as it is officially acknowledged to ASIC—Australian Securities and Investments Commission which regulates the activities of Australian companies, financial markets, organizations and others. To start a business, one must have a registered office with ASIC, alongside, a principal location of the business in Australia. In noteworthy of mentioning, a registered office and principal place of business must not One but two different locations—office and company respectively.
Disclose personal details of Directors
Directors are considered the first owners and runners of the business (there could be more than one director or only one). Director’s personal details comprising in full official Name, Date of Birth, along with current residential address must be recorded with ASIC. However, the company’s entity remains separated from Directors even if both are registered with ASIC as one.
Keep financial and other records, check annual statements
Financial records make a difference here. Financial records comprising of annual statements, cash flow statements and others are to be lodged with ASIC as the companies start to grow and earn a profit (taxable: federal taxes, state or local taxes). Hence, keeping up-to-date and true financial records is crucial. Other than this obligation, companies are also demanded to pay an annual fee to ASIC for review services.
Notify ASIC of any changes
Under the circumstances of any change in Business officials including registration office, business’s principal place, official name, or directors; ASIC must be informed in the first place. Without the acknowledgment of ASIC, the changes will not be considered Legal.
Licenses and Permits
Businesses are distinctive on the basis of industries and specific business start-up requires specific kind of business licenses and permits to run such business. Business Licenses in Australia are issued by local level, state level and federal level Government agencies depending upon the scale, type, and location of Business.