Hi there.

If you want to create an organisation which is not for profit, and which operated for a charitable purpose, it is important to consider all your options before you incorporate. Most charities which decide to incorporate register as public company that is limited by guarantee. “Limited by guarantee” means the liability of the company’s members is limited to the amount the members undertake to contribute to the property of the company if it is wound up. When you register as a company, you are creating a legal entity which is separate from its members. This means, among other things, that your company can hold property on its own and can sue and be sued by other people or companies.

If you would like to know more about incorporating a charitable not for profit company, we recommend you visit the ASIC website. ASIC provides free information about the special rules surrounding not for profit companies.

When creating the company, as you already know, you must register it under the Corporations Act 2001. As you are aware, this includes certain administrative fees, and involves tasks such as writing a constitution. Because this is a complex task, we agree with you that speaking to a lawyer who is an expert in the incorporation of charitable institutions is a good idea.