Are you considering going into business on your own without any young partners? There are two business structures which is appropriate for a little outfit like yours: a single proprietorship (sole trader) look 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 have and run it all. If this is the way you want to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You seem both truly the only shareholder along with the sole director of business. The company is legally regarded as being a sole shareholder/director proprietary small business. You may wonder why anyone would would prefer to register for a sole proprietary company regarding as a single proprietorship.
Well, plenty of real reasons to being registered as a sole shareholder/director company. Read on for some potential reasons individuals choose a company regarding your sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC and an ACN may be is issued, the company becomes a legitimate entity with a personality is actually independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can enter into contracts in its own name and will also sue, and be sued.
If a consultant is in debt, cash owed does not automatically become the debt within the shareholder. For a result, a civil lawsuit for the range of an amount of cash against the corporation is not necessarily a court action against the shareholder.
This happens because the liability of a shareholder is restricted to the value of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing legal action. This built-in limitation isn’t available in single proprietorships or for sole currency traders.
So if you find yourself conducting business by yourself, and you should limit your business liability, your sole shareholder proprietary company is for families.
* Flexibility in ownership
If your grows in the foreseeable future and you want to create incentives for your non-shareholder employees who have contributed to the success of the company, then a good way is to increase their involvement by transferring shares in the organization to these individuals.
This is also known being a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings getting required to terminate the legal status of the organization.
Another associated with the independent personality within the company is that it may keep going for the duration from the registration, notwithstanding changes as ownership in the company’s features. The death or retirement to a shareholder assaulted sale, transfer or assignment of the rights together with a company’s shares will not mean the termination regarding your company’s day-to-day lives.
You may one day decide at hand over the reins on the company to someone else, since one of your experienced managers or employee-shareholders. Even you may find a change of directors, the company will survive as its registered self.
It is worthwhile speaking having a legal adviser or accountant as as to what is best structure independently and firm. Also different countries perhaps has different legislation on this so check locally also.
It may be accomplished to register a company Online One Person Company Registration in India, but if this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your own company listing.