The state in which a company is registered is significant due to several factors, including eligibility for state grants, tax implications, and property laws. For instance, certain states may offer grants or funding that could benefit a company financially, such as the $25,000 grant available for technology start-ups in New South Wales. Taxation also varies by state, with different rules for taxes like payroll, land, and fringe benefits, making it crucial to understand the tax obligations in potential states before registration. Additionally, the laws governing the purchase, leasing, and development of property differ across states, affecting companies looking to establish physical premises.
Changing the state of registration is possible but involves a complex process that includes obtaining shareholder approval, notifying ASIC, and securing written approval from the relevant Minister, along with associated fees. It is advisable to carefully consider the initial state of registration to avoid the time-consuming and potentially costly process of changing it later. Undertaking thorough research on the legal and tax implications in different states can inform the decision and help identify the most advantageous state for company registration. This research might also reveal the best target audience for the company's products or services, further influencing the choice of state for registration.
To change your company’s registered jurisdiction at a later stage, please follow the below instructions:
- Conduct a shareholders meeting to propose the resolution.
- Submit a Form 205 – Notice of Resolution with ASIC 14 days after the meeting.
- It is necessary to obtain ministerial consent (from the minister in your current jurisdiction) to effect a change of jurisdiction pursuant to the Corporations Act 2001 (Cth) s 119A(3)(a)(i). In your application to the minister you will need to include your annual turnover, total assets and an explanation of why you would like to change jurisdictions.
- You must complete Form 2213 – Application for change of State or Territory of registration of a company and lodge this with ASIC along with your approval letter. There is a $495 fee attached to this transaction.
This is not a quick transaction. It can take several weeks to obtain ministerial approval. It will usually take an additional 28 days upon lodgement of Form 2213 with ASIC for the jurisdictional change to take effect.