Tips for maintaining your company registration with ASIC

When running a company, you’ll need to ensure your company details are kept up to date and that the company remains registered with ASIC. It’s important you know that when a company is deregistered it ceases to exist as a legal entity, and we’re required to freeze its accounts. This may impact the company’s business operations.

Key take-outs:

Companies are required to be registered with ASIC
You must check ASIC’s annual company statement to ensure all your details are correct
If there are any changes, you must notify ASIC and pay the relevant fees so that your company does not become deregistered
Information about the circumstances that may lead to ASIC deregistering a company can be found on the ASIC website

Businesses in Australia that trade as companies are required to be registered with the Australian Securities & Investments Commission (ASIC). It’s your responsibility for ensuring that the company maintains its registration with ASIC by keeping your details up to date.

ASIC sends an annual statement shortly after ASIC’s annual review date of the company, which is generally the date the company was registered. The annual statement will include your company’s details and an invoice for the company annual review fee. To ensure your company remains registered you’ll need to comply with the following:

Pay your annual company review fee
Check and update your company details
Pass a solvency resolution

Reasons why ASIC can deregister your company

ASIC may initiate the deregistration of a company for a number of reasons, including a company’s failure to pay an annual review fee or because it has ceased trading.

If ASIC initiates the deregistration process, it will update the company’s status on the register to display as ‘Strike off status’.

At the end of the strike-off process, the company may be deregistered and cease to exist as a legal entity. This means:

The company can no longer do anything in its own right
Property held by the company (other than trust property), including money in bank accounts, vests in ASIC
Property held on trust by the company vests in the Commonwealth with ASIC as its representative

What if I no longer need my company?

If you no longer need your company, consider applying to ASIC for voluntary deregistration. Before doing so, you should ensure that all financial products and services held in the company name are closed, and you may wish to seek advice from your accountant or financial adviser. Further information on how to deregister a company may be found on ASIC’s website.

What happens if your company is deregistered?

When a company is deregistered, the bank may take steps to freeze any accounts held in the name of the deregistered company. This means you will not be able to access or transact on the bank accounts.

If the company is not reinstated, the bank may:

Close the company’s accounts
Apply any credit balance in the company’s accounts against any debts the company owed
Send any remaining credit balance in the account that belonged to the company to ASIC (subject to any security arrangements)

The rightful owner may be able to claim credit balances that have been remitted to ASIC.

Funds sent to ASIC on behalf of a deregistered company will be searchable on ASIC's MoneySmart website. Any party wishing to claim should go to How to claim money owed to a deregistered company for more information.

Information on how to reinstate a company may be found on ASIC’s website.

If you are experiencing financial difficulty due to your company’s deregistration, or have any questions or concerns, please get in touch with our team on 1300 365 081. You’ll find information about the support we can provide on our website.

It’s important to make sure you’re going through the right steps, which include making sure your company remains registered with ASIC and your contact details remain up to date with us.

Why have I received an email or letter asking for information?

In some instances we will need to complete an assessment of the deregistered company account(s), in order to determine the rightful owner of funds that may not belong to the deregistered company.

If we have been unable to make phone contact with you, we may send an email/letter requesting your best contact information.
If you have received this communication, then please download and complete the form by clicking here.

The Detail

The information in this article is general in nature and does not take your objectives, financial situation or needs into account. Consider its appropriateness to these factors; and we recommend you seek independent professional legal and/or financial advice about your specific circumstances before making any decisions.