Are you considering going into business on your own without any two people? There are two business structures that are appropriate for a small 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 set up a company with only one person to get the and run all the stuff. If this is the way you want 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 sole shareholder and the sole director of business. The company is legally regarded as the sole shareholder/director proprietary contractor. You may wonder why anyone would decide either to register like a sole proprietary company regarding as one proprietorship.
Well, you will find real good things about being registered as a sole shareholder/director company. Read on for some potential reasons individuals select a company of a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC in addition to an ACN been recently is issued, the company becomes an authorized entity with a personality can be independent and separate from its shareholder. The aspect has important facts legally: A business can received contracts in its own name and this may also sue, and be sued.
If a firm’s is in debt, the owed doesn’t automatically become the debt of this shareholder. For a result, a civil lawsuit for the range of an amount of cash against group is never a court action against the shareholder.
This happens because the liability of a shareholder is limited to the value of his shareholdings unless he previously signed a personal guarantee just the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole options traders.
So if you find yourself conducting business by yourself, and require limit organization liability, your sole shareholder proprietary company is for families.
* Flexibility in ownership
If little grows in the future and you want to create incentives for your non-shareholder employees who have contributed to your success of one’s company, as well as good strategy is to grow their involvement by transferring shares in the company to him.
This one more known being a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings without being required to terminate the legal status of organization.
Another benefit of the independent personality within the company is that it may keep going for the duration of its registration, notwithstanding changes as ownership of your company’s stock shares. The death or retirement in the place of shareholder or the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination regarding your company’s every day life.
You may one day decide handy over the reins belonging to the company to someone else, such as one of one’s experienced managers or employee-shareholders. Even you may find a change of directors, the company will remain as its registered car.
It is worth it speaking by using a legal adviser or accountant as to what is incredibly best structure independently and your company. Also different countries will often have different legislation on this so check locally as well.
It may be accomplished to register a company online, but if this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your Online One Person Company Registration in India company subscription.