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 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 just One Person Company Registration in India online person to get 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 seem both the only shareholder and also the sole director of firm. The company is legally regarded as a sole shareholder/director proprietary company. You may wonder why anyone would like better to register for a sole proprietary company associated with as one proprietorship.
Well, that produce real benefits of being registered as a sole shareholder/director company. Every potential reasons individuals choose a company with regards to a sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC with an ACN has been is issued, the company becomes an authorized entity having a personality can be independent and separate by reviewing the shareholder. The aspect has important facts legally: A strong can decide on contracts in its own name and this may sue, and be sued.
If an enterprise is in debt, the money owed doesn’t automatically become the debt of this shareholder. As a result, a civil lawsuit for the gathering of a sum of money against the organization is not necessarily a legal action against the shareholder.
This happens because the liability of a shareholder has limitations to the need for his shareholdings unless he previously signed a personal guarantee and only the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole option traders.
So when you find yourself conducting business by yourself, and you should limit your enterprise liability, your sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your grows in the foreseeable future and you wish to create incentives for your non-shareholder employees who have contributed to the success of the company, then came good approach is to improve their involvement by transferring shares in the organization to these individuals.
This one more 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 organization.
* Continuity
Another associated with the independent personality among the company is that it may continue to exist for the duration of that registration, notwithstanding changes regarding ownership belonging to the company’s stock shares. The death or retirement in the place of shareholder or the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination about a company’s every day life.
You may one day decide to hand over the reins of the company to a person else, since one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will survive as its registered individual.
It is worthwhile speaking along with a legal adviser or accountant as from what is the best structure for yourself and firm. Also different countries perhaps has different legislation on this so check locally as well.
It is possible to register a company online, but since this is often a daunting prospect for you, there are appointed registered agents, who can advise and manage your own company subscription.