25 individual investors and 20 SMSF want (all are unrelated and total no. of shareholders will be 45 which is less than the limit of 50 shareholders) to incorporate a Pty Ltd company . Company will be purchasing a property , will develop the property and sell it for profit. There is no financing involved.
Can this structure allowed under the SIS Act.
Also is there any restrictions on the operation of this structure under ASIC.
Thank you
Hi Antony
The company is not considered to be a related party based on what you have advised so the SMSF is able to invest in the company.
I am not aware of any ASIC restrictions on the company but the directors should seek legal advice in relation to this when they establish the company.
Thanks
The Auditors Institute