Company Formation
A "corporation" is defined as a fictitious person created by charter, prescription or legislation. Australian law, like English law, recognises a kind of corporation called the corporation sole. However, there are few cases of such corporations, the corporation sole is excluded from the Australian statutory definition of corporation.
A proprietary company, under CA 2001 s 45A is one which has the suffix "Pty Ltd", and is not allowed to raise capital on the public equity markets. This form of business entity has similar characteristics to the Limited Liability Company, or LLC, that is a commonly used term in multiple jurisdictions around the world. Some of the characteristics of an Australian Pty Ltd Company include: i) Full foreign ownership is permitted, ii) requires minimum of 1 shareholder and 1 director, iii) requires one director to be resident in Australia and office address to be in Australia, iv) profits can be repatriated, v) an annual audit is required and vi) shareholders have limited liability.
- Unincorporated entity
Read more about this topic: Australian Corporations Law
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