Both types must have an annual audit. The exempt proprietary company is exempted from the accounting and auditing provisions in the companies statutes. The category of exempt proprietary company is defined narrowly, to ensure that public investors are not involved either directly or indirectly in an exempt proprietary company. An exempt proprietary company is one in which all shares are owned directly or indirectly by exempt persons, and if a non-exempt person owns or has a beneficial interest in a share then the proprietary company does not have exempt status. A non-exempt person is defined as including a public company.
Exempt status is lost if the final company in a chain of companies has any non-natural share owners.
An investor may incorporate a new company with the consent of the Australian Securities Commission . Shelf companies are also available. There is no minimum authorised or issued share capital. Once incorporation is approved, the Securities Commission issues a Certificate of Incorporation and an Australian company number. The company is then authorised to carry on business throughout Australia.