Company registration is quick and easy with Lawpath. It provides your business with greater legal protection as well as enhanced recognition in the market.

A company is a separate legal entity. It is a distinct person by law; separate from those who formed it. As a result, it has the ability to incur debt, sue and be sued. In fact, the rights and duties of a corporation are separate from the rights and duties of its directors and shareholders. This means the liability of shareholders is limited as the company is a separate legal entity. The debt of the firm, therefore, will not impact personal assets. This is known as the corporate veil. There are also tax benefits for a corporation as opposed to other business structures as business income rises.

Small business owners often use a structure known as a private company denoted by proprietary limited ‘Pty Ltd’. ASIC reports that 98.87% of all registered companies are proprietary including small or large companies. These shares have limited liability and are not available to the public. Private companies have a minimum of one shareholder and a maximum of fifty.

Public companies often have ‘Ltd’ after their name. They have a minimum of one shareholder and no maximum. A public company must have at least three directors and at least one secretary. Public companies raise capital by offering shares on the ASX. The owners of public companies have unlimited liability.

For more information on running a corporation and the legal requirements visit the ASIC webpage.

With Lawpath you can register your company with our 100% online and easy-to-use company registration service.

Schedule a free call here with a Companies Registration expert about your business and discuss what is needed to start a Pty Ltd company with Lawpath- Company Expert Consul

Find out more about different business structures in our article here: "Which Business Structure Is Right for You"