A shareholding company has a legal status which means that it exists as a separate entity from its owners and shareholders. The company is regulated by Australian Securities And Investments Commission, also known as ASIC.

An example of a shareholding company

The main advantage of registering a company is the limited liability on the shoulders of shareholders. The shareholders are liable only for the shares they own and nothing else. The main onus lies with the directors of the company as they take care of day to day running of the company. The owners own the shares of the company proportionate to the amount of contribution they have made.

The request for registration of a shareholding company can be made through business providers that deal with ASIC and the company is registered in a matter of minutes. Here are the steps that you need to follow:
•    You need to first decide on the business structure to follow as per your business needs. You must also understand your legal commitments as an office bearer for the company.
•    Now, you must choose the name of your company that may also indicate your legal status. The company also needs to mention its liability in the name like a limited company.
•    Make sure that you are aware of the rules laid down for different business structures and the additional legal formalities associated with them. The company can either adopt a constitution that it religiously follows or go for the replaceable rules as presented by Corporate Act.
•    Before applying for registration, you should get written approvals from the members, directors, and secretaries, if any. Depending on whether a company is public or proprietary, the number of directors and secretaries vary.
•    You can now complete your application form and lodge it for registration of your shareholding company. The form asks for all the office details along with structures followed and members’ shares.
•    Your must display your company name very prominently wherever you do business publically. You must also furnish you Australian company number correctly because it is your identity as a company.
You must check out official websites and authorized centres for complete details. Once your shareholding company is registered, you are ready to do business with all the benefits and limited liabilities.