A company has a separate legal personality. In other words, it is recognized in law as having an existence separate and apart from its owner(s). The company holds property, enters into contracts, transfers property and conducts legal matters in a capacity separate and distinct from its owner(s). The separateness of the company is also recognized for tax purposes.
The requirements for forming and operating a company are set down in the Corporations Law, which provides for the regulation of companies by the Australian Securities and Investments Commission (ASIC). A company can operate under replaceable rules laid down in legislation or it can adopt its own set of rules. A solo company with only one member does not need to have any rules at all. You can find information about forming and operating a company, including download able forms, from the ASIC’s Internet site at http:// www.asic.gov.au
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