Are you considering going into business on your own without any partners? There are two business structures that are appropriate for a little 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 set up a company with only one person to get and run it all. If this is the way you need to go, then all you have to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You in order to be both the sole shareholder and the sole director of business. The company is legally regarded as a sole shareholder/director proprietary contractor. You may wonder why anyone would choose to register for a sole proprietary company instead of as in one proprietorship.
Well, that produce real advantages to being registered as a sole shareholder/director company. Every potential reasons individuals pick a company with regards to a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC as well ACN is is issued, the company becomes a legal entity by using a personality is actually independent and separate from the shareholder. The aspect has important facts legally: A professional can enter into contracts in its own name and this may sue, and sued.
If a firm’s is in debt, the money owed doesn’t automatically become the debt within the shareholder. As the result, a civil lawsuit for the product of a sum of money against the machines is never a legal action against the shareholder.
This is because the liability of a shareholder is fixed to the value of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing court action. This built-in limitation isn’t available in single proprietorships or for sole option traders.
So if you find yourself conducting business by yourself, and will need limit your business liability, then sole shareholder proprietary company is for then you.
* Flexibility in ownership
If little grows later on and you would like to create incentives for your non-shareholder employees who have contributed for the success of one’s company, then came good approach is to grow their involvement by transferring shares in a lot more claims to people.
This furthermore known for a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings without being required to terminate the legal status of the organization.
Another advantage of the independent personality with the company is it may continue to exist for the duration from the registration, notwithstanding changes all of the ownership in the company’s features. The death or retirement with regards to a shareholder maybe the sale, transfer or assignment of the rights to be able to company’s shares will not mean the termination regarding your company’s presence.
You may one day decide to give over the reins on the company to someone else, because one of the experienced managers or employee-shareholders. Even you may find a change of directors, the company will remain as its registered private.
It is worth it speaking using a legal adviser or accountant as coming from what is obtaining structure independently and your company. Also different countries will often have different legislation on this so check locally as well.
It is workable to register a company online, nonetheless, if this can be a daunting prospect for you, there are appointed registered agents, who will advise and manage your own company listing.