ASIC: Do you know your requirements?
Starting and managing your own business is a steep learning curve, and all the bureaucracy involved is often overwhelming. As a creative, all the paperwork can feel like a frustrating distraction from what you want to be working on.
But, once registering a company with the Australian Securities and Investments Commission, otherwise known as ASIC, it is important to understand what your legal obligations are and make sure you are staying on top of them to avoid the punitive fines that can easily accrue.
For this reason, we have decided to clearly lay out your obligations here and to explain how we might be able to help.
Your ASIC requirements
After initially registering your company with ASIC, you are legally required to fulfill 4 key obligations. They are:
- Pay your annual review fee by the due date
- Check your annual statement to make sure all details are up to date
- Pass a solvency resolution
- Notify ASIC of any change regarding your company, as soon as possible.
Examples of such changes are:
- Change of your company name or address
- Change of Officeholder (you) or Shareholder details
- Appoint or cease company Officeholders or members
- Change of share structure or transferring shares
- Add or remove ultimate holding company
- And close and deregister your company if you wish
So this means that if you move house, and you are a director of a company, you need to notify ASIC. If you move office, you need to notify ASIC. If a shareholder moves house, you need to notify ASIC.
Failing to notify ASIC within 28 days of any change will result in a fine of $82. If you’ve been distracted, busy, or otherwise preoccupied with the demands of your work, and another month goes by without you submitting your company changes to ASIC the fine skyrockets to a brutal $340.
We understand that as a creative with a business, you are likely to be juggling a multitude of projects, obligations, and duties—all while possibly on the move from one location to another.
Here’s what we can do to help
Above the Line Accounting is a registered ASIC agent. This means we can act as a primary contact for ASIC on your behalf. If anything changes in your company, for instance, if a director or a shareholder move, or the company itself changes location, all you have to do is let us know and we will promptly undertake the paperwork required to update your company details with ASIC.
When the time for your annual statement and annual review fee comes, we will notify you by sending you the necessary forms to sign with the invoice to pay your review fee. This simplifies the process for you, decreases the likelihood of you missing a due date, and gives you peace of mind so you can focus on what really matters.
For this service, we charge a flat annual fee of $300. This fee will stay the same, no matter how many changes happen to your company. That’s less than what ASIC can fine you for not updating your information on time!
If you would like to nominate Above the Line Accounting as your primary contact for ASIC or talk about any of the information mentioned in this post, then book a free consult with us today.
A note on this article
Information provided by Above the Line Accounting on this website is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice.