Choosing the right incorporated legal structure
This legal information is for people in Victoria who have decided to incorporate their not-for-profit community group. (For more information about starting a not-for-profit group and deciding to incorporate see Before you start and The incorporation decision).
The people involved in your group will need to make a decision about which incorporated legal structure may best suit the aims, activities and culture of the group. (From now on, just for the sake of clarity, we will refer to ‘your organisation' rather than ‘your group').
Choosing the right incorporated structure for your organisation is a very important legal decision as it has consequences for:
- where your organisation is allowed to operate (i.e. only in Victoria or interstate);
- what activities your organisation is allowed to undertake;
- the costs of your organisations operations;
- who your organisation must provide information to (i.e. a government regulator);
- what kind and level (detail) of information your organisation must provide; and
- a number of other factors.
Because choosing an incorporated legal structure has such important consequences for the operation of an organisation, many organisations may want to seek specific legal advice on this issue. The following legal information resources are to help people who want to incorporate an organisation in Victoria, to understand the main options available, and the characteristics of each kind of incorporated structure.
Fact sheet: Overview of incorporated legal structures for Victorian not-for-profit organisations
This fact sheet provides an overview of the main characteristics of incorporated legal structures which are suitable for not-for-profit community organisations including:
- incorporated association
- company limited by guarantee
- indigenous corporation
- co-operative
Fact sheet: Incorporated association or company limited by guarantee?
For many Victorian not-for-profit organisations, the decision about which incorporated structure to choose often comes down to whether the organisation should be an incorporated association or a company limited by guarantee. This fact sheet sets out in more detail the differences between these two structures, and the benefits and limitations of both structures.
Also, please note that there are some proposed changes to the reporting requirements of companies limited by guarantee. They may apply as soon as 30 June 2010. If you are trying to decide which is the best option for your group - an incorporated assocation or a company limited by guarantee - it is worth looking at these proposals.
See the link below for a summary of the proposed changes. There is also a link to PilchConnect's law reform submissions to the Federal Treasury on the draft legislation.
PilchConnect will track the reforms, keep this website and fact sheet updated and notify people via our free monthly e-bulletin and earlier by tweet!
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This page gives a summary of the proposed changes to the reporting obligations of companies limited by guarantee and has links to the draft legislation.
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This page takes you to the PilchConnect submissions page. You can view the submissions on companies limited by guarantee made by PilchConnect in 2010 and 2007 (see - unlisted public companies)
Related legislation
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This link is to the legislation that regulates incorporated associations in Victoria.
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This is a link to the legislation that regulates companies limited by guarantee in Australia.
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This is a link to the legislation that regulates co-operatives in Victoria.
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This is a link to the legislation that regulates Indigenous corporations in Australia.
Related Links - Regulators (government agency responsible)
Incorporated Associations
Companies limited by guarantee