Are you considering going into business on your own without any employees? There are two business structures which is appropriate for a little outfit like yours: a single proprietorship (sole trader) or a registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to put in a company with only one person to enjoy and run everything. If this is the way you want to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You in order to both the only shareholder and the sole director of firm. The company is legally regarded for a sole shareholder/director proprietary company. You may wonder why anyone would like better to register as the sole proprietary company rather than as a single proprietorship.
Well, there are real benefits of being registered as a sole shareholder/director company. Here are some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC as well ACN recently been is issued, the company becomes the best entity by using a personality which isn’t independent and separate from its shareholder. The aspect has important facts legally: A business can creep into contracts in its own name and it will also sue, and be sued.
If a business enterprise is in debt, the owed doesn’t automatically become the debt on the shareholder. As the result, a civil lawsuit for the collection of an amount of cash against the company is not ever a court action against the shareholder.
This is they the liability of a shareholder has limitations to the need for his shareholdings unless he previously signed a personal guarantee in support of the one pursuing court action. This built-in limitation isn’t available in single proprietorships or for sole currency traders.
So for anyone who is conducting business by yourself, and require limit your business liability, the actual sole shareholder proprietary company is for you.
* Flexibility in ownership
If your business grows later on and you wish to create incentives for your non-shareholder employees who have contributed to the success of one’s company, as well as good technique to better their involvement by transferring shares in vehicle to people.
This is also known being a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings becoming required to terminate the legal status of the organization.
Another regarding the independent personality within the company is that it may persist for the duration from the registration, notwithstanding changes regarding ownership belonging to the company’s features. The death or retirement to a shareholder maybe the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination about a company’s existence.
You may one day decide to hand over the reins of the company to a person else, regarding one of one’s experienced managers or employee-shareholders. Even dampness a change of directors, the company will survive as its registered self.
It is worth it speaking having a legal adviser or accountant as as is the best structure for yourself and your company. Also different countries may have different legislation on this so check locally also.
It may happen to register a company Online OPC Registration in India, but since this is a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your online company subscription.