What types of Companies can be registered with ASIC?

Mia Farrugia

If you are thinking about starting a business in Australia, one of the first decisions you’ll need to make is the structure. Understanding the types of companies can be registered ASIC is essential.

Under section 112 of the Corporations Act 2001, the following types of companies can be registered with ASIC:

Proprietary Companies (Pty Ltd)

A proprietary company is the most common structure registered with ASIC in Australia.

A proprietary company must not have more than 50 non-employee shareholders and cannot raise funds from the general public. There are two sub-types of proprietary companies:

limited by shares provides shareholders with limited liability, meaning shareholders are not personally liable for the company’s debts beyond what they have paid for their shares.
unlimited with share capital has no limit on the liability of its members. If the company is wound up, shareholders can be called upon to contribute from their personal assets to cover any shortfall.

Public Companies (Ltd)

Public companies are normally best suited for larger businesses that want to raise capital from the public. There are 4 main sub-types of public companies:

limited by shares is a listed company where shareholders enjoy limited liability and the company can offer shares to the public. This type of public company has no limit on the number of shareholders.
limited by guarantee is a type of public company normally used by not-for-profit organisations, charities, clubs and associations. Members under this structure guarantee to contribute a set amount. This company structure does not issue shares.
unlimited with share capital is a structure where members have unlimited personal liability for the company’s debts.
no liability company is a structure exclusively available to mining and resource companies in Australia.

Special purpose company

ASIC also registers a few other entities in specific circumstances such as:

superannuation trustee companies;
home unit companies;
charity companies; and
existing companies that hold particular licences or registers under old laws.

Foreign Companies

Foreign companies are companies incorporated outside of Australia and which carry on business in Australia. Such companies must register with ASIC as a foreign company.