The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateCompanies incorporated on Norfolk Island must keep accounting records, store source documents and make financial statements (it is required by the Companies Act).
Companies must keep source documents for at least 7 years.
Financial statements of companies consist of a balance sheet and profit and loss statement. They shall be prepared in accordance with Australian accounting standards close to international standards. Accounting records shall be kept in English.
A company’s reporting period lasts 12 months. The first reporting period starts on the date of the company’s incorporation and may last 12 to 18 months depending on decision of director of the company.
Financial statements of a company must be presented at an annual general meeting of shareholders. An annual general meeting of shareholders shall be held within 5 months after the end of the reporting period.
The company’s directors must, at least 14 days before the annual general meeting of shareholders, prepare financial statements of the company: a balance sheet and profit and loss statement. Financial statements shall be sent to participants of the meeting along with the notice of the meeting.
Not less than 14 days and not more than 56 days before an annual general meeting, directors pass a resolution and sign a report on the company’s activity for the last financial year, state the amount of net profit and dividends to be distributed.
The Registrar may request financial statements and accounting records for the reporting period. The Registrar sends the request to the company’s registered address. Documents must be provided within 14 days after such a request has been received.
Companies that have the obligation to report to the Registrar annually must file financial statements within 3 or 4 months after the end of the financial year depending on the type of the company.
Audit is compulsory for public companies, companies whose activity is connected with securities circulation, large companies and managed investment schemes. Small companies are exempt from audit, unless the Registrar requires financial statements to be audited.
An auditor is appointed within one month after incorporation of the company. Its appointment shall be approved at an annual general meeting of shareholders. The auditor retains the position until a resolution to dismiss the auditor is passed at a meeting.
Failure to comply with accounting and record keeping requirements will result in a fine of up to 7 825 AUD imposed on the company and its director. In some cases, a criminal penalty in the form of imprisonment is applied.
In the case of failure to provide financial statements and accounting records at the request of the Registrar, a fine of 6 260 AUD may be imposed on the company.
On Norfolk Island, a group of companies must prepare consolidated financial statements.