The first in the series of Simple Mistakes looks at ACN/ABN and company documentation:
Is your Australian business incorporated via ASIC? If so your company must operate by the rules determined in the Corporations Act 2001.
Are your company documents correct?
The Act (s153) requires that a company sets out its name on all public documents along with the company’s ACN (Australian Company Number) or ABN (Australian Business Number) – for a two page or more document the above information must be shown on the first page.
Is your ABN displayed?
All businesses with ABNs
Make sure that your ABN is clearly displayed on your invoices to customers to avoid a withholding tax deduction from your incoming payment.
Compliance Essentials can assist with all your business compliance requirements, contact us on 1300 602 880 or via our website
Some of the mistakes that businesses make when it comes to compliance are very simple, and because of that we are launching a series of posts looking at some of the matters which can be very easily rectified.
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Need to look at the bigger picture? Contact us on 1300 602 880 or via the website for an initial discussion as to how Compliance Essentials can help your business.
So what is the issue with ‘compliance’? Has the word acquired a bad image or does it go deeper?
One of the issues – the decision makers in some organisations fail to admit that ‘compliance’ is relevant to what they do, whereas in fact every organisation has compliance obligations.
Forget the handle and move away from the concept of policing. The issue does not necessarily lie with the concept of compliance, the issue rests with not acknowledging and accepting that adopting a compliant culture can bring benefits.
Organisations that can’t see the gain unfortunately don’t acknowledge the potential of pain until it happens to them. Using the analogy of insurances, it isn’t common practice to wait, for example until there has been a theft or involvement in a car accident, to think about insurances; most of us buy the required policies to protect ourselves and/or our businesses in case the bad things happen outside of our control. In a similar way, using best endeavours to proactively implement compliance in an organisational environment is a means of taking control as well as protecting a business from the risk of serious compliance breaches that could, amongst other outcomes, cause injury, have a financial impact, damage reputation.
Why not take the benefits, which are manifold, and will ultimately make a contribution to the bottom line.
By the way, it is calculated to be far more costly to remedy a proven compliance breach than to be in control with the implementation of a compliance plan………….
The Compliance Essentials Team
Whatever the size of business, an entity incorporated with ASIC needs to be aware of compliance obligations; these are not always given the correct priority. What may need to be reported to ASIC? Change of director’s information, appointment or resignation of a director and/or company secretary, change of address, change to a company constitution, in some instances annual financial statements, the above are some of the list. Reporting to ASIC should occur within the correct timelines and be accompanied by the correct documentation for example a special resolution where the Corporations Act determines this is needed.
Always know who holds the entity’s Corporate Key, the unique identifier for your company lodgements (paper and electronic). For more information on the importance of your company’s Corporate Key visit the ASIC website www.asic.gov.au
Failure to report correctly to ASIC can incur financial penalties and these may increment over time.
Need some assistance with company secretarial administration? Why not give us a call on 1300 602 880?
The Compliance Essentials Team
We hope you will stay in tune with our new blog where we aim to bring you up to date news on what is happening in the realms of risk management and compliance in Australia.
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