There are several different kinds of companies you can start if you want to go into business in Australia. The companies can be sole proprietor, partnership or a proprietary limited company, also known as a Pty Ltd company.
It is simple enough to know what the sole proprietor and the partnership involve. But it can be difficult to understand what the Pty Ltd company is.
A proprietary company is a form of corporation in Australia that is limited by shares. However, unlike a public company there are, depending on jurisdiction, restrictions on what they can and cannot do.
Proprietary limited companies are also classified as “large” or “small”. A proprietary company is classified as small only if it meets at least two of the following criteria:
- It has a gross operating revenue of less than $25 million for the financial year.
- It has assets of less than $12.5 million at the end of a financial year.
- It has fewer than 50 employees at the end of a financial year.
Let’s first take a look at the pros and cons of starting a Pty Ltd Company.
Pros of a Pty Ltd Company are: Read more here
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