How does a PTY Ltd company work through a recruitment agency?
A Proprietary Limited (PTY LTD) company is a business structure that has at least one shareholder and up to 50, where the liability of shareholders is limited to the value of shares.
Under the Australian Corporations Act 2001, a proprietary company must be either –
- Proprietary Limited (Pty Ltd) company, limited by shares, where shareholders are afforded more protection when it comes to the level of liability they face for company debts; or
- Unlimited Proprietary (Pty) company with a share capital, similar to its limited company (Ltd or Pty Ltd) counterpart, but where the members’ or shareholders’ liability is not limited.
So how does a PTY LTD company work when you take on a contract through a recruitment agency?
Should you have a PTY LTD company and you wish to operate under this, you will be a PTY contractor and the contract will operate between your recruitment agency and the PTY LTD company, quoting a daily rate ex GST paid to your company.
You will be required to provide the company’s current worker’s compensation certificate of currency along with the company details including ABN and bank details. You are also required to cover your own PI/PL insurance and provide the certificate of currency confirming this.
Most agencies can cover the PI/PL insurance on behalf of your company. However you should find out what the recruitment agency will deduct from your daily rate to cover this.
Recruitment companies will require the following from you before they can generate a contract with your PTY LTD company:
• Current certificate of currency for Worker’s compensation
• Registration confirmation for GST (If you have only just registered)
What documents will you need?
At Attribute Group, the additional documents that will be required before your start date are as follows:
• Details of the company (internal Form)
• PI/PL Insurances Declaration form (internal Form)
• Current certificate of currency for PI/PL Insurances
• Payroll Tax Declaration form (internal Form)
• Company Registration
Here at Attribute Group we have a dedicated Contractor Care Manager, so please reach out to Shelley Iddles should you want to know more details on this:
T: 02 8251 9700