However, if you suspect that your TFN is lost, stolen or accessed by an unauthorised third party, contact ATO client identity support centre for help. You can get advice, more information and implementation of security measures by calling 1800467-033.
TFN is essential for you and will be required in the process of submitting a tax return. It can be used by other individuals for identity fraud if it falls into the wrong hands. This is why you should never keep it on a piece of paper in your wallet or save it on mobile phone. Sending it through a text message or even filling out an online form is not 100% safe. The safest way to pass your TFN on to an employer is when you fill out a TFN declaration form.
You may have noticed that most of the company names end with the abbreviation Pty Ltd, which is short for ‘proprietary limited.’ This word relates to the business form of a firm as it means that shareholders are responsible for debts of a firm only up to their defined limit. Owning and running private companies with the ‘proprietary limited’ label is a fairly simple procedure. Furthermore, these companies are the most common type in Australia. The purpose of this article is to shed further light on the commonly used term ‘Pty Ltd’ and describe how proprietary limited companies are required to be set up.
The ‘Pty’ or ‘proprietary’ in the term ‘proprietary limited’ denotes that as a business formation, a limited amount of shareholders own the shares in the company. Furthermore, the company cannot issue shares to the general public. This is different from public companies that have the abbreviation ‘Ltd’ at the end. The number of shareholders in a public company is not limited and the company’s shares can be offered to anyone. If it is a company listed on the Australian Stock Exchange (ASX), you can purchase and trade in its shares.
Private companies have limited ability to raise capital since they cannot sell an infinite number of shares to make money. In contrast, public companies have higher regulatory requirements with major accounting and reporting requirements in place to protect the masses.
The word ‘Ltd’ or the term limited imply that a shareholder is only legally bound to each and every debt or liability of a company up to the value of his shares in it. That is, if a company goes bankrupt its shareholders lose the money they invested into purchasing their shares. If a shareholder has been issued shares at less than the full price, they will need to pay for them.
An alternative to a company limited by shares is a company limited by guarantee. At these firms, members are made to accept a specific degree of legal responsibility the moment they become members. In other words, they agree to indemnify the company up to a certain liability amount.
The law distinguishes between small and large proprietary companies and regulates them differently. As of 1 July 2019, a proprietary company is large if it meets at least two of the following criteria:
As a proprietary limited company, you are bound by certain legal responsibilities. To incorporate a Pty Ltd company, as of July 1, 2019, you are required to pay an upfront incorporation fee in the amount of $495 to ASIC. Apart from that, there is an annual review fee of $267 due on the anniversary date of incorporation.
Proprietary limited companies in Australia must have registered office and principal place of business. ASIC sends documents to the registered office of the company.
A proprietary limited company is also required to have one director who does not live in Australia as his residence. The director’s duties should also be observed by directors.
Big proprietary companies are required to file and submit financial reports and directors’ reports every year. ASIC must also audit their accounts. These reports also do not need to be filled by small proprietary companies unless ASIC wants. However, they should keep proper financial records and file Business Activity Statements to the Australian Taxation Office (ATO).
As a rule, a company may operate under a business name without appending the Pty Ltd abbreviation after it. The business name does not have to be identical with the company name. In the case of a business name, you must register a business name with ASIC.
For instance, an accounting business owner named John might be operating under the name ‘John Fashion’. He may desire to operate his business as a company if it grows. To do this, he must register his accounting business with ASIC. He will also have to incorporate his business as John Fashion Pty Ltd. This will apply even if the name of John’s business is ‘John Fashion with the Austrian Tax Office.
A promissory note enables an individual (‘the issuer’) to promise, in writing, to pay a certain amount of money agreed upon with another person (‘the payee’). Although a promissory note is an easy and equal instrument, it cannot be used in every situation where you borrow or lends money. It is also not to be mixed up with a loan agreement.
A promissory note is essentially a written promise by the issuer to pay a certain sum of money to the payee under certain conditions. This payment can be made on demand or based on a future date. Promissory notes are useful when the parties involved have a good, close and trust-oriented relationship and they deal with relatively small sums of money. In these situations, the parties might prefer not to negotiate a long and complicated loan agreement.
For instance, if John loans Jessica $ 1,000 and they do not engage in the process of negotiating a formal loan agreement, they opt for an informal arrangement. For Jessica to provide John with written assurance that the $1,000 will be repaid, so she issues a promissory note to Hailey. This note reveals Jessica’s intention of paying up the $1,000 as soon as possible and provides a written proof for the agreement between them.
Although promissory notes and loan agreements are issued in situations that involve one person borrowing some money with the intention of repaying it later, they are quite different.
However, promissory notes do not have much coverage for the creditor. Therefore, in situations where heightened protection is needed, it is worth opting for a full loan agreement. However, there is a need to note that the addition of more complex terms in a promissory might make it an intricate financial product and might place it under specific regulations such as Corporations Act or National Consumer Credit Protection Act. In such situations, it is recommended to consult a lawyer to check through the promissory note and establish its suitability for your particular situation.
Employer of Record Hong KongBefore starting your own business, you need to conduct a thorough planning taking into account all the essential factors that may influence your success as an entrepreneur. Amid these factors, there are the type of business you start, partners for your business and more often than not where the location of your business is. A great idea for a business may be truly enough to achieve success, but when it comes to the actual situation, where location of his or her business also matters.
Begin by looking at McDonald’s, which never fails to attract huge audiences thanks to the strategic decisions they make regarding where their outlets are based and why investing in real estate properties is just as important as spending money on items and services provided. Nonetheless, finding the perfect location for your business is not easy no matter if you decide to rent or buy property in an Australian commercial district. It impacts your overall budget significantly, so it is vital to look for alternatives that can help you stay in a central business district (CBD) without the high costs.
This is where the idea of a virtual office in Sydney comes into its own. Well, what then is a virtual office and why has it been growing in popularity of late especially among SMEs and startups?
In the process of starting up your own business, you will have to come up with some very big decisions. A part of that decision is to decide where you want your office – whether it will be in your own home, rented office or property you have bought. You have a lot to choose from, but that selection will depend on what image you want for your business.
Try to imagine this: You decided to establish your office at home and meet with all of your business partners in an office space that can be rented on the hour or for a day. You may be networking with your clients at professional ambient places where you also hold your meetings, but the registered address of your company remains to be under the residential address. Some clients will most likely disregard this, however, most of them will probably no longer be at ease to do business with your company.
As far as the creation of a business concern is concerned, professional image becomes one major factor on which you have to work especially if your new business. As absurd as it may seem, you have to make your clients believe that your company is much larger than it is. As a result, this is how you are creating your business’s reputation, wherein in many cases, the future clients will easily entrust their businesses to your company.
But lucky for you, in today’s modern age and easy access to technology, Virtual Address is one solution that you can consider in having for your business. Don’t be deceived by its name “virtual”. Virtual Address is actually a real and true address. Most companies who provide this type of service also provide a host of other services like Virtual Receptionist, Virtual Assistant and virtual hotline numbers to enable the account holder operate their business as seamlessly as possible.
But lucky for you, in today’s modern age and easy access to technology, Virtual Address is one solution that you can consider in having for your business. Don’t be deceived by its name “virtual”. Virtual Address is actually a real and true address. Most companies who provide this type of service also provide a host of other services like Virtual Receptionist, Virtual Assistant and virtual hotline numbers to enable the account holder operate their business as seamlessly as possible.
The word “virtual” means that your business does not run in a real place of the location you have chosen, but uses it virtually. A Virtual Address is created to serve as a reference point for your business – it can be thought of as a mask or cover. For instance, the marketing collaterals that you will use to build your company’s image such as business cards, websites and brochures where your business address is printed.
