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Is it legal?

Discussion in 'Accounting, Tax & Legal' started by R185, 10th Nov, 2009.

  1. R185

    R185 Member

    Joined:
    10th Nov, 2009
    Posts:
    5
    Location:
    Sydney, NSW
    As you may be aware, no Australian residents are not allowed to setup companies or purchase certain types of assets.

    Corporations act 2001 requires that at least one of the director or company secretary need to be Australian resident to set up a company in AU.

    This is my thought: to set up a company with an Australian resident as company secretary and use that company to acquire assets (e.g. real estate) that foreigners would otherwise be barred from.
    To achieve maximum asset protection, the company then can be the trustee of a discretionary trust and acquire assets on behalf of the trust.

    Please let me know if the above is workable...

    thanks in advance for your replies.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Who controls the company?

    Where does the money come from to purchase assets?

    Who are the beneficiaries?
     
  3. R185

    R185 Member

    Joined:
    10th Nov, 2009
    Posts:
    5
    Location:
    Sydney, NSW
    1. The directors would be foreign residents with the company secretary being the AU resident.

    2. Money will come from overseas which will not be too much of a problem.

    3. Beneficiaries, I am thinking that probably (most likely) will be the individual what other options are there?

    Thanks
    R
     
  4. Meggsy

    Meggsy Well-Known Member

    Joined:
    15th Feb, 2007
    Posts:
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    Location:
    Brisbane, QLD
    A proprietary company must have a minimum of 1 director (resident in
    Australia). The offi ce of secretary is optional, but if appointed one must
    reside in Australia.
     
  5. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    You need to check whether you are now a financial provider, like a managed investmet scheme, along with all its attendant legislation.

    Cheers,

    Rob