A joint stock company in Australia refers to a company that can be listed on the stock exchange. In Australia, the joint stock company is known as public company limited by shares.
This company type is suitable for large companies that can be listed, and in which investors are allowed to buy and sell shares.
However, it must be noted that this company type has in common with the private company limited by shares the characteristic that the liability of shareholders is limited to the amount that they have subscribed.
Those who want to open a company in Australia must know that they can also opt for the unlimited company. Our consultants in company formation in Australia can offer more details on the characteristics of other business forms available here.
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What are the main characteristics of an Australian public limited company by shares?
The joint stock company in Australia or the public limited company by shares usually refers at a large company that can be listed (although the investors are not obligated to list it), where the shareholders are liable only for their capital participation, while the directors do not hold any personal liability.
Below, our consultants in company registration in Australia have prepared a short presentation concerning the characteristics of the public company:
- it falls under the regulations of the Corporations Act 2001;
- there aren’t any limitations of the number of shareholders, but it must have at least 3 directors;
- out of the 3 directors, 2 of them must be Australian residents;
- it is also necessary to appoint 1 company secretary.
What are the main steps for company formation in Australia?
The process of registering the joint stock company in Australia follows the standard steps for incorporation. The only way to not follow all the registration steps is to purchase a shelf company in Australia, which is a business form that has already been incorporated and it is available for sale.
Amongst the main steps, the investors have to reserve a business name with the Australian Securities &Investment Commission (ASIC), obtain the certificates of registration and sign the statutory papers.
For all these, you can rely on the assistance of our team, who can help you open a company in Australia and provide legal representation.
Business owners can reserve a company with ASIC, by completing and submitting the Form 410. Many of the registration requirements are completed with this institution.
For instance, when appointing directors, it will be necessary to complete specific forms, including to apply for a director identification number.
Regarding the compulsory managerial team of the company, such as directors and secretaries, ASIC will ask many documents, including their written consent for filling in this corporate role.
All companies must have at least 1 member, 1 director and 1 secretary and the requirements can vary based on the company type, as presented above for the joint stock company.
The secretary and the directors must have a minimum age of 18 years old at the moment when they sign all the documents, and residency requirements are also available.
When you will open a company in Australia, you must also have a registered address, this being one of the compulsory steps for company incorporation.
Based on your particularities, you must bring documentation that shows your company has its legal address in a specific, physical place for doing business (purchase agreement, rental agreement, utility bills).
Please mind that a business address is mandatory in all cases, including when you purchase a shelf company in Australia (the company already has a registered address, but investors can modify it). We invite you to contact us if you want to know more on the process of registering a joint stock company.