Are you considering going into business on your own without any partners? There are two business structures which really can be appropriate for a 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 put in a company with only one person to get the and run everything. If this is the way you want 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 truly the only shareholder and the sole director of business. The company is legally regarded as being a sole shareholder/director proprietary company. 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 advantages to being registered as a sole shareholder/director company. Spots potential reasons individuals choose a company of every sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC as well ACN been recently is issued, the company becomes a legitimate entity by using a personality can be independent and separate from the shareholder. The aspect has important facts legally: A strong can enter into contracts in its own name and it can also sue, and be sued.
If a firm’s is in debt, the money owed doesn’t automatically end up being the debt on the shareholder. As the result, a civil lawsuit for the product of an amount of cash against the organization is never a legal action against the shareholder.
This is that the liability of a shareholder is limited to the value of his shareholdings unless he previously signed a personal guarantee and only the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole option traders.
So when you find yourself conducting business by yourself, and require limit your enterprise liability, the actual sole shareholder proprietary company is for then you.
* Flexibility in ownership
If little grows in the foreseeable future and will need create incentives for your non-shareholder employees who have contributed towards the success of your company, as well as good approach is to grow their involvement by transferring shares in a lot more claims to him.
This one more known for a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings becoming required to terminate the legal status of organization.
Another associated with the independent personality of the company is it may remain for the duration of registration, notwithstanding changes in the ownership among the company’s shares. The death or retirement for a shareholder assaulted sale, transfer or assignment of the rights to be able to company’s shares will not mean the termination about a company’s day-to-day lives.
You may one day decide to give over the reins on the OPC Company Registration in India Online to someone else, regarding one of your experienced managers or employee-shareholders. Even style a change of directors, the company will survive as its registered individual.
It is worthwhile speaking with a legal adviser or accountant as to what is incredibly best structure on your own and your company. Also different countries may hold different legislation on this so check locally also.
It is possible to register a company online, but since this is a daunting prospect for you, there are appointed registered agents, to advise and manage your own company application.