Are you considering going into business on your own without any collaborators? There are two business structures that are appropriate for a small 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 setup a company with only one person to have and run all the stuff. If this is the way you want to go, then effortless to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You seem both the main shareholder as well as the sole director of your company. The company is legally regarded for a sole shareholder/director proprietary contractor. You may wonder why anyone would would prefer to register as the sole proprietary company regarding as a single proprietorship.
Well, there are some real benefits to being registered as a sole shareholder/director company. Every potential reasons individuals select a company of a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC and an ACN has been is issued, the company becomes a lawful entity by using a personality which isn’t independent and separate from its shareholder. The aspect has important facts legally: A strong can start contracts in the own name and will also sue, and be sued.
If a firm’s is in debt, the bucks owed doesn’t automatically become the debt within the shareholder. As a result, a civil lawsuit for the product of an amount of cash against group is probably not a court action against the shareholder.
This is because the liability of a shareholder is limited to the value of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing law suit. This built-in limitation isn’t available in single proprietorships or for sole option traders.
So if you are conducting business by yourself, and you should limit your enterprise liability, then the sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your Online OPC Registration in India business grows in the foreseeable future and will need create incentives for your non-shareholder employees who have contributed into the success of your company, then a good technique to grow their involvement by transferring shares in the company to these individuals.
This furthermore known to be a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without required to terminate the legal status of the company.
Another advantage of the independent personality among the company is it may keep going for the duration of the company’s registration, notwithstanding changes as ownership of your company’s features. The death or retirement of a shareholder or even the sale, transfer or assignment of the rights to some company’s shares will not mean the termination of a company’s presence.
You may one day decide at hand over the reins with the company to someone else, since one of the experienced managers or employee-shareholders. Even you may find a change of directors, the company will survive as its registered auto.
It is worthwhile speaking with a legal adviser or accountant as as is best structure by thinking through yourself and your organization. Also different countries will often have different legislation on this so check locally also.
It can be to register a company online, , however, if this can be a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your own company subscription.