Do you need to lodge financial reports with ASIC?
Generally, companies are required to lodge reports where:
- there are substantial sums of money involved
- the general public has invested funds with the company, or
- the company exists for charitable purposes only and is not intended to make a profit. Refer to Financial reporting for companies registered with the Australian Charities and Not-for-profit Commission (ACNC) if your company is a charity registered with the ACNC.
Section 292 of the Corporations Act 2001 (Corporations Act) requires the following entities to prepare financial reports:
- all disclosing entities
- public companies
- companies limited by guarantee (except small companies limited by guarantee)
- all large proprietary companies (Is your company large or small?)
- all registered schemes
- small proprietary companies that are foreign-controlled
- small proprietary companies or small companies limited by guarantee that we direct to prepare financial reports
- small proprietary companies subject to a shareholder direction under s293 of the Corporations Act
- small companies limited by guarantee subject to a shareholder direction under s294a of the Corporations Act
Section 601CK of Corporations Act requires registered foreign companies to lodge balance sheets, profit and loss statements, cash flow statements and other documents with ASIC. You should seek professional advice if you are unsure of your company's financial reporting obligations.
AFS licensees must also lodge financial statements under section 989B of Corporations Act.