Australia Public Company Formation

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australia FlagAustralia Public Company Formation

Australia Public Company Formation. Going public simply means selling full ownership of your company or organization in the public market. Shares are sold for the first time in what is known as Initial public offer (IPO). As simple as going public sounds, it involves a lot of rigorous activities like planning and feasibility study and this can take between 6 months to one year.

Before you go public, you have to prepare yourself physically and psychologically as you will no longer work for yourself but for a group of shareholders. The psychological readiness comes into play when shareholders begin to query certain business decision of yours. This is a hard pill to swallow for someone who had been running his company all by himself without reporting to anybody. This is the point where the reality of going public begins to dawn on some business managers.

Nevertheless, private companies still go public because of the numerous advantages involved. Going public has both long term and short term advantages. The first benefit is higher liquidity, since the company will have easier access to cash and loan. Going public also increases the popularity of a company thereby increasing the value of the company.

Going public means more transparency which in turn leads to more credibility so public companies easily get credit facilities for loan, lease or even supply of raw materials. This is because any public company cannot just vanish into thin air.

Despite all these benefits, it is rather unfortunate that not all private companies can go public. Some have gone and succeeded while others have gone public only to regret the idea. So there are important points to consider before going public. First of all, do you have a large database of loyal customers? Is your company profitable enough to attract investors? If you cannot confidently boast of the two qualities mentioned above, you should give your going public a second thought.

Apart from the two qualities above, you also need a management team that can dazzle investors coupled with a manager who has a verifiable and impressive record that will be at the helm of affairs. One more thing, you need to have a set of dedicated permanent employees and not the ones on contract. Once you have all these in place, going public already has over 60% chances of success.

It is a very good idea to register public company in Australia because of the stability of their economy. Australian economy is not only stable, it is among the best 20 economics in the world. The simple rule of the thumb says that the chances of survival of any company are highly dependent on the economy of the country where it is established.

Australian government highly encourages Australia public company formation with their business laws, friendly taxes and general guidance. The fact that there is no political disturbance or any other crisis in Australia makes Australian Public companies enjoy rapid growth.

You may also interested in to register an Australia Proprietary Company