Comprehensive Establishment Kit for Trustee Company Structure $990 (GST Incl.)
Before deciding on a trustee company for your self-managed super fund establishment, certain eligibility criteria must be met. In particular, a company is prohibited from being a trustee where:
A receiver, official manager or provisional liquidator has been appointed; or
The company has been wound up.
A responsible officer is defined as a director, secretary or chef executive officer under SIS Act section (10). A disqualified person is defined under SIS Act section (120) as a person who:
Has been subject to a civil penalty imposed under the SIS Act;
Is insolvent under administration (an undischarged bankrupt); or
Has been disqualified from acting as a trustee of self-managed super funds by the regulators.
What is included in the trustee company registration package?
Where SATO SMSF Administration® is appointed to establish your trustee company, our service level agreement would include the following documentation:
Liaising with ASIC to obtain the Australia Company Number (ACN);
Certificate of company registration;
Minutes of the first directors’ meeting;
Public officer documents;
Consent to act as director;
Application for shares;
Form 201 of the Corporations Act 2001
Notice of appointment of Public Officer; &
Register of members.
Please note: Where self managed super funds are established with the objective of purchasing an investment property, a trustee company structure is recommended.
What are the advantages of a trustee company structure?
Depending on your circumstances, a trustee company structure may provide certain advantages over individual trustees. For example:
Dividends cheques are easily identifiable as they are written with the trustee company as the “payee”, and not under the members’ names;
Where the membership of the fund structure changes e.g. a member leaving the fund, it is easier to remove a director with a minute of resolution, than it is to remove individual trustees. For example, if the SMSF held 20-30 investments, then the ownership details need to be changed and communicated to all the relevant share registries. This can be a time consuming and costly exercise; &
Where the fund holds an investment property, the service of a conveyance would need to be engaged to change the title of ownership if a member was to leave.
What are the disadvantages of a trustee company?
- Additional compliance costs with ASIC. However, costs can be significantly reduced if the company makes an election to operate solely as a “superannuation trustee” – special purpose company, and not engage in other business trading activities; &
- Problems can arise for small to medium business owners who elect to use the one company to act as a superannuation trustee, as well as carrying on a family business. Monies can be inadvertently deposited and withdrawn from the incorrect account resulting in breaches of the superannuation laws.
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