Different Ways to Incorporate
Non-government organisations in the ACT can choose to be either an incorporated association or a company limited by guarantee. An incorporated association is set up under the Associations Incorporation Act 1991 (ACT). A company limited by guarantee is set up under the Corporations Act 2001 (Cth).Setting up a company or an incorporated association means the organisation becomes a legal entity that is separate from the individuals who set it up. It can trade in its own name, enter contracts, be sued (and sue), own and sell assets. By setting up a company or incorporated association, members of the organisation limit their liability to pay the debts and losses incurred by organisation (provided they have acted legally when acting for the organisation).
Both structures are 'not-for-profit'. 'Not-for-profit' or 'non-profit' doesn't mean you can't make money. It means that if you do make money, those profits aren't to be distributed among members (which is what happens in a private company). Instead profits are put back into the organisation to help it meet its goals.
Back to Incorporation
