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What is the ASIC exactly?

Nov 21, 2018 | Accounting, Business

What is the ASIC exactly? Why do you have to be registered with ASIC?

For you to run your business through a company in Australia, that company has to be registered with the Australian Securities and Investments Commission (ASIC) by law. ASIC then charges a fee every year, basically to hold this company.

Why do we send you something to sign for ASIC each year?

It is an obligation as a director of a company to ensure that your details are up to date on ASIC’s records. We will send you the company statement to check that all details are correct.

It is also an obligation of the company directors to ensure that they are trading solvently i.e. you can pay all your bills when they fall due. There is a statement in the annual documents that we send you that asks you to sign a declaration saying that you are solvent.

What happens if you don’t pay the fee by the due date?

As we mentioned earlier, ASIC charges a fee every year. If you don’t pay the fee by the due date, ASIC charges substantial late fees. The first late fee up to one month late is $79, if the fee still isn’t paid after the first month you will incur a $329 late fee.

If you continue to ignore the fees for a number of months ASIC can deregister your company, meaning you would not be trading through a registered entity.

How do I keep my details up to date with ASIC?

If your business or personal addresses change, please notify us within 28 days of moving so that we can lodge the change with ASIC. If your details are not up to date ASIC can also fine you for not notifying within the 28-day period.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

If you have any questions about your annual statement or wish to update your details please contact us online or phone (07) 4944 0449.