Incorporation

On Consideration of the various options for the creation of our committee it appears that Incorporation is a wise move.

Incorporation is the cheapest and quickest way to become a legal entity.

For most organisations, the choice of structures is between company status and incorporation. Limited companies are highly regulated; incorporated associations are lightly regulated. Setting up a company is complicated and expensive; incorporating as an association is comparatively cheap and simple. Unless your organisation is very big indeed, or carries on a lot of business, your best option will probably be to become an incorporated association.

Incorporation is a system of State Government or Territory registration that gives an association or community groups certain legal advantages in return for accepting certain legal responsibilities. An incorporated association is a registered legal entity usually for recreational, cultural or charitable purposes with at least five members and all profits applied to the purposes of the association. It receives recognition as a legal entity separate from its members and offers some protection for office holders from any debts or liabilities incurred by the group as long as the association doesn’t make a profit for its members.

Source:

http://www.ourcommunity.com.au/directories/directories_article.jsp?articleId=2103

I expect we will need to be a legal entity if we are to establish agreements or contracts and seek grants.

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