As per the Corporations Act, every Private or Pty Ltd company must have at least one director who is a resident of Australia. Public companies must have at least two directors who reside in Australia.
In addition, it is also important for a company to have a public officer with an Australian tax file number before it can apply for an Australian Business Number (ABN), which has to be done prior to getting the business off the ground.
Who can be your Resident Director?
There are a few conditions for a person to be a resident director.
Primarily, a person should be more than 18 years of age and permanent resident of Australia. However, considering the risks that come along with the position of a resident director, a very few people are willing to perform this role.
It is crucial to count on an experienced resident director – someone who can help you overcome challenges. For example, a business lawyer can guide you on legal requirements that your business must adhere to. On the contrary, if you do not opt for professional legal advice, you might run into problems which can cost you big time.
Considering the fact that your resident director will be handling the financial and legal aspects of your business, it is important that the professional you bring on board has both legal and business experience. He should be able to understand your business, how it is performing at present, and your future plans. This will help him guide you on your legal and financial matters more efficiently.
How can a resident director protect you?
Choosing resident directors services offers legal protection. Ascertain that the professional you hire as your resident director has a complete company director agreement that explains what he will do and is capable of delivering adequate protection to you.
The benefit of appointing a lawyer as your resident director is that lawyers have additional responsibilities. If they fail to follow the right process, they might lose their eligibility to practise law.
There are other ways to ascertain that you are protected. For example, your resident director need not necessarily be a signatory to your operating bank account.
How can an Australian resident director benefit your business?
The right and experienced Australian resident director can offer several benefits to your business as he takes up the following responsibilities:
>>Handles financial management, corporate governance, and takes care of execution of strategy to the board.
>> Offers risk management advice
>> Helps a business in setting up the company and governance structure
>> Provides advice on business development and strategic alliances
>> Ensures that all ASIC, ASX, APRA, and RBA needs are taken care of
A resident director is an important asset of your organisation. If you are seeking nominee directors Sydney, make sure to get in touch with the right professional who can understand your needs, your business goals, and guide right solutions that can take your business to greater heights of success.