Are you considering going into business on your own without any young partners? There are two business structures which really can be 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 just one person to have and run everthing. If this is the way you want 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 in order to be both the shareholder and the sole director of business. The company is legally regarded for a sole shareholder/director proprietary small business. You may wonder why anyone would like better to register to be a sole proprietary company associated with as a single proprietorship.
Well, that produce real reasons to being registered as a sole shareholder/director company. Below are some potential reasons individuals choose a company of a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC along with an ACN may be is issued, the company becomes an authorized entity along with a personality which isn’t independent and separate looking at the shareholder. The aspect has important facts legally: A business can enter into contracts in its own name and this may also sue, and sued.
If an enterprise is in debt, cash owed doesn’t automatically get to be the debt belonging to the shareholder. Being a result, a civil lawsuit for the gathering of an amount of cash against group is not necessarily a law suit against the shareholder.
This is simply because the liability of a shareholder is restricted to the cost of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole sellers.
So in case you’re conducting business by yourself, and you wish to limit little liability, your sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your business grows in the future and you want to create incentives for your non-shareholder employees who have contributed for the success of the company, as well as good way is to increase their involvement by transferring shares in the company to people.
This one more known as being a stock choosing. 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 benefit of the independent personality from the company is that it may continue to exist for the duration of the OPC Company Registration in India Online‘s registration, notwithstanding changes all of the ownership of the company’s shares. The death or retirement with regards to a shareholder assaulted sale, transfer or assignment of the rights in order to company’s shares will not mean the termination of a company’s existence.
You may one day decide to hand over the reins of the company to a person 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 worthwhile speaking with a legal adviser or accountant as as to what is best structure on your own and your organization. Also different countries may have different legislation on this so check locally also.
It is possible 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 registration.