Are you considering going into business on your own without any two people? There are two business structures which is appropriate for a good small outfit like yours: a single proprietorship (sole trader) look 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 have and run everthing. If this is the way you wish 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 seem both the only shareholder as well as the sole director of business. The company is legally regarded as a sole shareholder/director proprietary company. You may wonder why anyone would would prefer to register like a sole proprietary company associated with as in one proprietorship.
Well, that produce real benefits to being registered as a sole shareholder/director company. Below are some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC in addition to an ACN has been is issued, the company becomes a legal entity having a personality is actually independent and separate from its shareholder. The aspect has important facts legally: A business can creep into contracts in the own name and it can also sue, and sued.
If a business enterprise is in debt, the money owed doesn’t automatically get to be the debt of this shareholder. As being a result, a civil lawsuit for the range of a sum of money against the company is not necessarily a court action against the shareholder.
This happens because the liability of a shareholder has limitations to the value of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing legal action. This built-in limitation is not available in single proprietorships or for sole currency traders.
So if you find yourself conducting business by yourself, and you desire to limit on the web liability, then sole shareholder proprietary clients are for families.
* Flexibility in ownership
If your business grows in the foreseeable future and require create incentives for your non-shareholder employees who have contributed into the success of your company, then came good method to strengthen their involvement by transferring shares in a lot more claims to him.
This one more known as a stock choosing. 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 the organization.
* Continuity
Another associated with the independent personality from the company is it may continue to exist for the duration of the company’s registration, notwithstanding changes as ownership in the company’s shares. The death or retirement with regards to a shareholder or the sale, transfer or assignment of the rights to some company’s shares will not mean the termination associated with company’s presence.
You may one day decide at hand over the reins of the company to a person else, because one of your experienced managers or employee-shareholders. Even whenever there is a change of directors, the company will remain as its registered car.
It is worthwhile speaking using a legal adviser or accountant as to what is the best structure for yourself and firm. Also different countries could different legislation on this so check locally as well.
It is workable to register a company Online OPC Registration in India, nonetheless this is a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your company registration.