Are you considering going into business on your own without any partners? There are two business structures that are appropriate for a good 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 put in a company with only one person to own and run everything. If this is the way you wish to go, then all you have to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You will be both truly the only shareholder along with the sole director of business. The company is legally regarded as the sole shareholder/director proprietary venture. You may wonder why anyone would choose to register like a sole proprietary company rather than as one proprietorship.
Well, there are some real advantages to being registered as a sole shareholder/director company. Below are some potential reasons individuals pick a company of a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC with an ACN been recently is issued, the company becomes the best entity having a personality is actually independent and separate from its shareholder. The aspect has important facts legally: A business can received contracts in the own name and this may also sue, and sued.
If a company is in debt, the owed doesn’t automatically end up being the debt of the shareholder. As a result, a civil lawsuit for the product range of a sum of money against the machines is not ever a court action against the shareholder.
This is they the liability of a shareholder has limitations to the cost of his shareholdings unless he previously signed a personal guarantee and only the one pursuing court action. This built-in limitation is not available in single proprietorships or for sole option traders.
So in case you’re conducting business by yourself, and you desire to limit your business liability, the actual sole shareholder proprietary clients are for most people.
* Flexibility in ownership
If your business grows in the future and you wish to create incentives for your non-shareholder employees who have contributed to the success of the company, as well as good way is to grow their involvement by transferring shares in the company to him.
This can also known for a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings getting required to terminate the legal status of organization.
Another associated with the independent personality within the company is that it may remain for the duration of registration, notwithstanding changes as ownership of your company’s explains. The death or retirement to a shareholder or the sale, transfer or assignment of the rights to some company’s shares will not mean the termination with a company’s existing.
You may One Person Company Registration in India online day decide to give over the reins on the company to a person else, regarding one of the experienced managers or employee-shareholders. Even style a change of directors, the company will remain in existence as its registered individual.
It is worthwhile speaking with a legal adviser or accountant as from what is extremely best structure for yourself and your business. Also different countries may have different legislation on this so check locally also.
It may happen to register a company online, nonetheless this is a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your company subscription.