Creating your own company couldn’t be easier here in Australia. All you need is a little cash, an accountant and your company is up and running. Then we say good luck with your venture. That’s the most easiest part when creating a company. But there are a lot of other things that you will need to do before and after the company is set. This article will not go in depth in that area as this my first time to own a company. I am basically a complete novice in this new field. Owning a company.
A family acquaintance of ours invited me to do a business venture with him. This was a bistro and we were all excited because it was simply too good to be true! We literally don’t have any overheads! There’s an existing kitchen and there’s no rent. Except for gas and electricity. We are aware of the difficulties that we will face and we have made strategies to combat all these.
When I was approached to be part of this venture, I was told that we are going to make some money. Everything has been planned for, and all that is needed is capital to which we would only need about AUD$2,000.00 of our own money to get the company started. I didn’t believe it at first because my understanding of setting up a company and running it properly would require much more than this. I went along anyway because the way I saw it, if the bistro fails then there’s only AUD$2,000.00 of my money down the drain and my precious time that will forever be lost. I was ok with that. I was brought in with my AUD$2,000.00 capital that magically appeared on my lap—thanks to mum and also the same with the other two partners.
We had a total of AUD$6,000.00 as capital between the three of us an additional AUD$5,000.00 given by the owner of the pub that we were operating from. At this point I will refer to my partner’s name as Steve and John and I will use my first name Jojie as point of reference. The extra $5,000.00 was obtain by John who somehow managed to convince the owner of the pub to almost give it away to us so that we can speed the process up and operate in the bistro.
I was in charge of all things paper work which I am totally OK with because I have no business in the kitchen. Unless the patron would like to eat what I cook and not have to complain about the consistency of the product or that they got the wrong order—I don’t cook and my knowledge of what food is what is limited.
To open up a company you need to see an accountant—you may be able to do it by yourself but because our time was extremely limited I went with the accountant instead of doing it ourselves. I brought in with me all the details of my partners—their full name, address, tax file numbers and ABN numbers because they have one and the place of birth because the accountant will need these. During my meeting with the accountant there were a number of forms that were filled in and a fee so that our name can be registered. The total cost for company registration and accounting fees amounted to AUD$1,000.00 from which AUD$700.00 goes to ASIC and $300.00 to accounting fees.
The accountant themselves do not register the business. They go through a company who will do that for them for the cost of $700.00. These companies will then take all your details and register it with ASIC who will give you your ACN number and have your company registered.