Are you considering going into business on your own without any partners? There are two business structures which is appropriate for a little outfit like yours: a single proprietorship (sole trader) potentially registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to setup a company with just one person to enjoy and run whatever. 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 become both the main shareholder along with the sole director of business. The company is legally regarded as a sole shareholder/director proprietary small business. You may wonder why anyone would like better to register to be a sole proprietary company instead of as a single proprietorship.
Well, there are some real benefits to 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 is is issued, the company becomes the best entity with a personality is actually independent and separate from the shareholder. The aspect has important facts legally: A company can enter into contracts in its own name and it will also sue, and be sued.
If an enterprise is in debt, the owed does not automatically get to be the debt of the shareholder. As a result, a civil lawsuit for the gathering of an amount of cash against the company is not inevitably a court action against the shareholder.
This is because the liability of a shareholder has limitations to the need for his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing legal action. This built-in limitation isn’t available in single proprietorships or for sole traders.
So if you find yourself conducting business by yourself, and require limit your enterprise liability, the actual sole shareholder proprietary clients are for families.
* Flexibility in ownership
If your business grows in the foreseeable future and will need create incentives for your non-shareholder employees who have contributed towards the success of the company, then came good approach is to strengthen their involvement by transferring shares in an additional to these individuals.
This can also known as being a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without required to terminate the legal status of they.
Another benefit of the independent personality from the company is it may persist for the duration of the company’s registration, notwithstanding changes all of the ownership of the company’s shares. The death or retirement for a shareholder possibly the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination of a company’s every day life.
You may one day decide to hand over the reins for this company to a person else, pertaining to instance one of one’s experienced managers or employee-shareholders. Even style a change of directors, the company will remain as its registered auto.
It is worthwhile speaking having a legal adviser or accountant as as is incredibly best structure off the web and your business. Also different countries may hold different legislation on this so check locally as well.
It is possible to register a company Online One Person Company Registration in India, but since this can be a daunting prospect for you, there are appointed registered agents, who can advise and manage your own company number.