Are you considering going into business on your own without any employees? There are two business structures that may be appropriate for any small outfit like yours: a single proprietorship (sole trader) probably a registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to setup a company with only one person to enjoy and run whatever. If this is the way you wish to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You will be both truly the only shareholder and the sole director of organization. The company is legally regarded as a sole shareholder/director proprietary organization. You may wonder why anyone would like better to register as the sole proprietary company as compared to as a single proprietorship.
Well, plenty of real good things about being registered as a sole shareholder/director company. Read on for some potential reasons individuals select a company of every sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC as well ACN is is issued, the company becomes an authorized entity having a personality which isn’t independent and separate from the shareholder. The aspect has important facts legally: A company can enter into contracts in the own name and this may also sue, and be sued.
If a company is in debt, the owed doesn’t automatically get to be the debt of this shareholder. As the result, a civil lawsuit for the gathering of a sum of money against the organization is never a legal action against the shareholder.
This happens because the liability of a shareholder is fixed to the price of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing court action. This built-in limitation isn’t available in single proprietorships or for sole sellers.
So when you find yourself conducting business by yourself, and you wish to limit your business liability, your sole shareholder proprietary company is for a person will.
* Flexibility in ownership
If your grows in the future and require create incentives for your non-shareholder employees who have contributed to the success of your company, as well as good method to better their involvement by transferring shares in vehicle to these individuals.
This one more known as a stock option. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without being required to terminate the legal status of organization.
Another benefit of the independent personality from the company is it may continue to exist for the duration of the company’s registration, notwithstanding changes in ownership belonging to the company’s explains. The death or retirement of a shareholder maybe the sale, transfer or assignment of the rights to some company’s shares will not mean the termination associated with company’s day-to-day lives.
You may one day decide at hand over the reins of the company to a person else, since one of the experienced managers or employee-shareholders. Even dampness a change of directors, the company will survive as its registered self.
It is worthwhile speaking using a legal adviser or accountant as from what is incredibly best structure on your own and your company. Also different countries will often have different legislation on this so check locally also.
It is workable to register a company Online One Person Company Registration in India, but if this can be a daunting prospect for you, there are appointed registered agents, who will advise and manage your online company listing.