Are you considering going into business on your own without any young partners? There are two business structures which is appropriate for a smallish outfit like yours: a single proprietorship (sole trader) or registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to pitch a company with only one person to get and run everything. 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 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 choose to register to be a sole proprietary company instead of as in one proprietorship.
Well, that produce real reasons to being registered as a sole shareholder/director company. Here are some potential reasons individuals select a company of every sole proprietorship:
* Legal personality of company.
Once a firm is registered with the ASIC along with an ACN recently been is issued, the company becomes a legitimate entity using a personality that is independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can decide on contracts in the own name and it can also sue, and sued.
If a business enterprise is in debt, the amount owed doesn’t automatically end up being the debt on the shareholder. As a result, a civil lawsuit for the product range of a sum of money against group is probably not a legal action against the shareholder.
This is because the liability of a shareholder is limited to value 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 options traders.
So if you are conducting business by yourself, and will need limit organization liability, your sole shareholder proprietary clients are for a person will.
* Flexibility in ownership
If your business grows later on and require create incentives for your non-shareholder employees who have contributed towards the success of the company, then came good strategy is to improve their involvement by transferring shares in the organization to him.
This furthermore known for a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the corporate shareholdings without required to terminate the legal status of the company.
* Continuity
Another associated with the independent personality with the company is it may continue to exist for the duration of that registration, notwithstanding changes as ownership of the company’s stock shares. The death or retirement with regards to a shareholder maybe the sale, transfer or assignment of the rights to a company’s shares will not mean the termination with a company’s day-to-day lives.
You may One Person Company Registration in India online day decide at hand over the reins with the company to someone else, since one of your experienced managers or employee-shareholders. Even you may find a change of directors, the company will survive as its registered private.
It is worthwhile speaking using a legal adviser or accountant as to what is obtaining structure independently and firm. Also different countries may have different legislation on this so check locally too.
It is possible to register a company online, , however, if this is a daunting prospect for you, there are appointed registered agents, to advise and manage your own company registration.