Buying shares in a small business can reap great rewards. It could be that you want to invest in a start-up with a great idea, or maybe you simply want to buy into the family business. Either way, you need to be well informed of the process in order to ensure your investment is a good one.
As suggested by the name, ‘shelf companies’ are inactive businesses which sit dormant for a period of time before they are purchased. They can be considered new because they are unused. But they are also perceived as old since they have been around for a while. Although shelf companies are typically ‘clean’, there is still the possibility of a bad business history or other details you should know about.
If you’re running a small business, an ABN is an excellent asset, and it’s free to apply for one if you go through the Australian Business Register. If, however, you apply for an ABN without being entitled to one, or fail to comply with other statutory requirements, you could face a fine of up to $10,000.