Foreign investors can open a SPV company in Australia. SPV stands for Special Purpose Vehicle and it defines a company that is specifically set up for a type of activity, not for general business operations, as it is the case of commercial legal entities.
In Australia, businessmen can open a SPV under 3 main types of companies. Our consultants can help you open a company in Australia as an SPV and complete all the required registration formalities, which are done through the Australian Securities &Investment Commission (ASIC), the same institution in charge with the registration of other legal entities.
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What types of SPVs are available in Australia?
According to ASIC, investors can open a SPV company in Australia under one of the 3 types of entities that can operate as an SPV. The 1st one is the Superannuation Trustee Company. This is incorporated following the provisions of the Section 19 of the Superannuation Industry (Supervision) Act 1993.
This type of SPV company has the main purpose of acting as a trustee for superannuation funds. Unlike commercial companies, this SPV is not allowed to distribute profit to its founders (property can’t be distributed to the members of the company as well – these provisions have to be included in the founding document of the SPV company).
Therefore, those who want to open a company in Australia for personal financial gain have to seek other legal entities as alternatives. The 2nd option for the setup of an SPV company is the Home Unit Company.
This entity is recommended for incorporation when a group of people, living under the same property (such as a block of flats), want to administer the property, its costs and other matters. This structure can also be used by those who own a property divided into several or more households.
It must be noted that a Home Unit Company has to be incorporated as a proprietary company, one of the legal entities available for incorporation for commercial purposes as well. Our specialists in company incorporation in Australia can assist investors with in-depth advice on the registration requirements imposed for this legal entity.
The 3rd option for an SPV company is the Not-for-Profit Company. The purpose of this entity is to develop activities that are not designed for profit, as the name suggests. This entity can be set up for a variety of charitable purposes and, just like in the case of the 1st type of SPV company, the founding document must restrict the distribution of income to members or directors.
Incorporation obligations for Australian SPVs
The process of setting up an SPV company is similar with the one of company incorporation in Australia for commercial companies. The founders must take all the steps for its registration and draw and sign the founding document of the SPV. In the list below, you can discover some of the main registration formalities:
- investors can open a company in Australia as an SPV following either the rules of the Corporations Act 2021 (the replaceable rules), either it is set up by signing a constitution, either a combination of the 2 options;
- the constitution must be prepared prior to actually completing the registration process and, according to the Section 139 of the above-mentioned Act, members can obtain a copy of the document in maximum 7 days since they have made the request;
- the constitution must also abide by the rules of the Corporations (Review Fees) Regulations 2003;
- in order to announce ASIC on the fact that the company is an SPV, company owners must submit 1 of the 3 declarations – Home Unit Company Declaration, Not-for-Profit Company Declaration or the Superannuation Company Declaration.
We invite you to contact our consultants if you need more details on how to set up a company in Australia as an SPV. Additionally, you can also contact us if you want to purchase a shelf company in Australia.