Business Structures in Australia: Partnership and Company

This paper contains the video scripts in context of all three parts of the report, and these scripts
are divided into three parts:
Part 1:
This part defines the two business structures which operate in Australia for carrying on the
business operations, and these two structures are:
Partnership: Partnership is the structure under which two or more persons agree to operate the
business in the form of co-owners and agreed to share their profits and losses. These co-owners
are known as partners of the firm. Partnership is of two types that are general partnership and
limited partnership.
Some important and basic components of partnership are:
 Persons who conduct the firms business are called as partners.
 Partnership structure in Australia is governs under the partnership Act 1958.
 Liability in partnership is unlimited.
 Each partner is considers as the agent of partnership and other partners of the firm.
 Partners can bind the firm or other partners with their acts.
 Partners required registering themselves for GST in case annual turnover of the business
is $75000 or more.
Company: Company is considered as the separate legal entity, not like the sole trader and
partnership business. Company must be register with the Australian Securities and Investments
Commission (ASIC). Management of the company lies in the hands of the directors and officers,
and they are under obligation to comply with the Corporation Act 2001.
Some important and basic components of partnership are:
 Company is the separate legal entity.
 Shareholders of the company enjoy limited liability.
 Structure of company is complex and expensive in nature as compared to other structures.
 The Corporations Act 2001 regulates this structure.