Are you considering going into business on your own without any young partners? There are two business structures that are appropriate for a smallish 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 set up a company with only one person to have and run it all. If this is the way you need to go, then in your situation to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You will be both the main shareholder and the sole director of your company. The company is legally regarded for a sole shareholder/director proprietary company. You may wonder why anyone would like better to register to be a sole proprietary company regarding 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 company is registered with the ASIC in addition to an ACN recently been is issued, the company becomes a lawful entity by using a personality that is independent and separate by reviewing the shareholder. The aspect has important facts legally: A business can start contracts in its own name and it can also sue, and sued.
If a company is in debt, the bucks owed does not automatically become the debt within the shareholder. For a result, a civil lawsuit for the range of an amount of cash against the machines is not ever a law suit against the shareholder.
This is they the liability of a shareholder has limitations to value of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing legal action. This built-in limitation isn’t available in single proprietorships or for sole sellers.
So in case you’re conducting business by yourself, and require limit your business liability, then sole shareholder proprietary company is for most people.
* Flexibility in ownership
If your Online One Person Company Registration in India business grows in the foreseeable future and you wish to create incentives for your non-shareholder employees who have contributed towards the success of one’s company, then this good way is to strengthen their involvement by transferring shares in the organization to these individuals.
This one more known as being a stock route. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings getting required to terminate the legal status of the organization.
Another regarding the independent personality within the company is it may persist for the duration of that registration, notwithstanding changes in the ownership of your company’s shares. The death or retirement with regards to a shareholder possibly the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination of a company’s every day life.
You may one day decide at hand over the reins for this company to someone else, regarding one of your experienced managers or employee-shareholders. Even you may find a change of directors, the company will remain as its registered auto.
It is worthwhile speaking by using a legal adviser or accountant as to what is best structure by thinking through yourself and firm. Also different countries perhaps has different legislation on this so check locally also.
It may be accomplished to register a company online, nonetheless this is a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your online company listing.