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Initial shares issue, repayment to directors

Newbie

Views 185

Replies 1

Hello,

 

We are a new startup business incorporated by a group of co-founders with no prior experience of starting a company from scratch. Our venture is a fairly regular PTY LTD limited by shares and not registered for GST yet.

 

During the online registration we have selected our shares as "unpaid". After company's bank account was opened, all founders (who are also directors) have paid what is due.

 

Questions:

  1. I have called ATO hotline and was advised we don't need to report paying for our shares... Which, to my understanding, turned out not quite correct as we need to report this to ASIC and are now late. Is there any other agency / form / report we need to complete?
  2. Before company's bank account was ready, we have purchased several laptops using our own cards. From taxation perspective, if we repay ourselves from company's account, do we need to report this? If yes, how? On ATO's hotline I was advised this does not need to be reported if it happens within 6 months from the purchase date and we are currently within this window.

 

Thank you.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @KRobinson

 

ASIC is the best organisation to speak to about any further obligations regarding the share registry for your company and registration in general. They administer the Corporations Act which is the principal legislation that regulates companies in Australia. My apologies you weren't directed there in the first instance.

 

Funds provided to the business can be recorded as a loan to the company which will be a liability. There has been a similar question asked previously that we and others have responded to. Take a look at the following thread to find out more - loan provided to a company.

 

Ari

 

 

 

 

 

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @KRobinson

 

ASIC is the best organisation to speak to about any further obligations regarding the share registry for your company and registration in general. They administer the Corporations Act which is the principal legislation that regulates companies in Australia. My apologies you weren't directed there in the first instance.

 

Funds provided to the business can be recorded as a loan to the company which will be a liability. There has been a similar question asked previously that we and others have responded to. Take a look at the following thread to find out more - loan provided to a company.

 

Ari