Short answer: A company or trust can buy Australian bonds in its own name: the bonds are registered to the company or the trustee, and interest is paid to the entity's bank account. To open the account you provide the entity's registration details, identification for its directors or trustees and beneficial owners, and show that the entity, or the person who controls it, qualifies as a wholesale investor.
| Entity | Documents | Bonds are held by |
|---|---|---|
| Company | ASIC company extract; ID for directors and shareholders of 25% or more | The company |
| Family or unit trust | Trust deed; trustee details; ID for trustees and beneficiaries who control it | The trustee for the trust |
| SMSF | Trust deed; ABN; ID for the trustees | The trustee for the SMSF |
A qualified accountant's certificate can cover a company or trust controlled by a person who meets the wholesale test (net assets of A$2.5 million or income of A$250,000 a year). A single investment of A$500,000 or more also qualifies.
To keep investments apart from business money, for family estate planning, or for tax reasons. Interest is income of the entity and, for a trust, is distributed under the trust deed. This is general information, not tax or legal advice.
General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.