Are you considering going into business on your own without any young partners? There are two business structures that are appropriate for a small 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 get going a company with only one person to have and run it all. If this is the way you need to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You become both the only shareholder as well as the sole director of business. The company is legally regarded as being a sole shareholder/director proprietary company. You may wonder why anyone would decide either to register as a sole proprietary company regarding as one proprietorship.
Well, there are real reasons to being registered as a sole shareholder/director company. Spots potential reasons individuals select a company of every sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC with an ACN recently been is issued, the company becomes a legitimate entity using a personality can be independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can received contracts in its own name and this may also sue, and be sued.
If an enterprise is in debt, cash owed does not automatically end up being the debt belonging to the shareholder. Being a result, a civil lawsuit for the collection of an amount of cash against the company is never a court 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 in support of the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole traders.
So if you are conducting business by yourself, and you should limit little liability, then the sole shareholder proprietary clients are for most people.
* Flexibility in ownership
If your grows in the future and you wish to create incentives for your non-shareholder employees who have contributed into the success of the company, as well as good strategy is to improve their involvement by transferring shares in an additional to these individuals.
This likewise known to be a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the corporate shareholdings without being required to terminate the legal status of the company.
Another associated with the independent personality of the company is that it may continue to exist for the duration of registration, notwithstanding changes as ownership in the company’s stock shares. The death or retirement in the place of shareholder assaulted sale, transfer or assignment of the rights in order to company’s shares will not mean the termination associated with company’s every day life.
You may one day decide to give over the reins belonging to the company to someone else, regarding one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will stay alive as its registered car.
It is worth it speaking with a legal adviser or accountant as to what is incredibly best structure by thinking through yourself and your business. Also different countries may hold different legislation on this so check locally as well.
It may be accomplished to register a company Online One Person Company Registration in India, but if this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your online company application.