What is ASIC Annual Review
As a business owner, it's crucial to stay on top of your company's regulatory requirements to maintain compliance and avoid any penalties. Each year, the Australian Securities and Investments Commission (ASIC) issues an annual statement containing the information they have on your company. In this blog post, we will guide you through the essential steps involved in the annual review process to ensure your company remains compliant.
Understanding the Annual Statement:
ASIC will issue your company's annual statement shortly after your company's Annual Review Date, usually the anniversary of its registration. This statement includes vital information about your company at the time of issuance, including your company's current details, an invoice for the annual review fee, and your company's corporate key.
Paying the Annual Review Fee:
To maintain your company's registration, it is crucial to pay the total amount specified on the ASIC invoice by the due date. Failure to do so can result in late fees and, eventually, deregistration of your company. Timely payment of the annual review fee ensures your company remains in good standing with ASIC.
Reviewing and Correcting Details:
Carefully review the details provided in your ASIC Annual Statement. If you identify any incorrect information, you can easily update it by submitting an ASIC Form 484. This form can be conveniently completed online through your ASIC connect account. Ensuring the accuracy of your company's details is essential for maintaining compliance.
Passing the Solvency Resolution:
Within two months of the annual review date, the directors of your company must pass a solvency resolution. This resolution confirms that the company can meet its financial obligations and continue its operations. In case of a positive solvency resolution, store the resolution and be prepared to present it to ASIC if requested.
Consider Deregistration if Applicable:
If you no longer wish for your company to be operational, you may consider deregistering it. However, until the company is officially deregistered, you are responsible for fulfilling any applicable annual review fees and late fees. Additionally, the officeholders of the company must continue upholding their duties until the deregistration process is complete.
By following these essential steps outlined in the annual review process, you can ensure your company remains compliant with ASIC regulations. Paying the annual review fee on time, reviewing and correcting details, and passing the solvency resolution are crucial to maintaining your company's registration and avoiding any penalties. If deregistration is your preferred course of action, be aware of the ongoing obligations until the process is finalized. Stay proactive and uphold your responsibilities as a company owner to achieve continued success in the business landscape.