Regulatory and compliance Articles
A Founders Guide to Navigating Corporate Compliance Updates
Australian startups face overwhelming amounts of regulatory changes, which if not monitored can result in substantial fines, penalties, lawsuits, loss of reputation or court action for your venture. Startup, corporate or business compliance is the process of ensuring that your venture and team members follow the correct laws, standards, regulations, and ethnical practices. Many ventures develop a ‘compliance program’ – a set of internal policies, procedures, and training modules – to identify and reduce their risk of breaching mandatory corporate compliance practices.
Deciphering the constant influx of corporate compliance updates can be a headache for many founders. Yet, it is extremely important that you understand and enforce these regulatory measures, regardless of your startup’s industry. At Allied Legal, we continuously assist startups in mitigating corporate compliance risk and provide preventative solutions that will save your startup in the long run.
If you are a fintech startup, you may be facing necessary licensing from the Australian Securities and Investments Commission (ASIC), such as AFS and credit licences. Luckily, ASIC provides several resources to assist fintechs with navigating this process. This includes ASIC’s Innovation Hub initiative, designed to support fintech startup businesses with navigating and complying with the licensing process. To learn more, you can follow the link. ASIC also offers Enhanced Regulatory Sandbox (ERS) to make it easier for fintech startups to test their offering. You can check your eligibility here.
Property Transactions Changes to GST Laws
On 29 March 2018 GST laws in relation to property transactions were amended. The changes were made as some developers were failing to transfer the GST collected from the purchasers to the Australian Taxation Office (ATO). The new laws require the purchasers of new residential premises or subdivisions of potential residential land to withhold the GST due and pay this directly to the ATO. The payment must be made on or before settlement. To read more about these changes, you can follow the link.
Directors ID Now Required for Australian Directors
From 1 November 2021 new rules will require Australian directors to apply for a Director ID if they are the director of a company, a registered Australian body, or a registered foreign company under the Corporations Act 2001, or an Aboriginal or Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. The changes were introduced to prevent the use of fraudulent director identities. To find out more about Director IDs, you can follow the link.
Need Help? Contact Us
At Allied Legal, we are up to date with all new legislative changes that may affect your startup. If you would like to speak with one of our commercial lawyers, you can connect with us on 03 8691 3111 or send us an email at firstname.lastname@example.org.