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SMSF Setup SMSF Transfer

Using an Existing Company

Setting Up an SMSF with Your Existing Company: A Comprehensive Guide

If you already have an existing company—whether it’s a business trading company, a trustee company for your family trust, or one established independently of our services—we can assist you with setting up your Self-Managed Super Fund (SMSF).

Key Considerations for Using Your Existing Company as the SMSF Trustee:

  1. Ownership Verification Challenges: Verifying asset ownership can be complex. Your existing company will legally own assets in both your SMSF and other business or family trust interests. In most states and territories, the company will be recorded as the owner of assets such as properties and motor vehicles.
  2. Compliance Risks: If your company has provided corporate guarantees for your trading or investment entity, your SMSF might breach borrowing rules, leading to compliance issues.
  3. Legal Risks: The assets of your SMSF could be at risk if your trading business or investment entity has been involved in legal disputes or proceedings.
  4. Transaction Errors: If the bank accounts for your SMSF and existing entities have similar names, there is a risk of transaction errors. Misusing SMSF funds for business expenses could be flagged by the ATO as breaches of the SIS Act and Regulations.
  5. Directorship and Shareholder Changes: Modifying the directorship or shareholders of an existing company that acts as the trustee for your SMSF can be complicated. This may affect the transfer of business interests or investments within your family trust.

Costs for Setting Up an SMSF with Your Existing Company:

Required Information for Your Existing Company:

  • ASIC Company Details Extract or the Latest ASIC Review Statement
  • ACN Certificate
  • Signed Minutes: Including signed director/public officer/secretary/shareholder consent, shareholder certificates, and all registers
  • Company Constitution: We recommend a sole-purpose company constitution for clarity

Recommendation: To avoid these potential issues and ensure a smooth setup, we recommend establishing a brand-new SMSF. This can provide peace of mind and streamline the management of your fund.

For more information or to get started, contact us today to discuss your SMSF setup options.

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