Are you considering going into business on your own without any employees? There are two business structures that is appropriate for any small outfit like yours: a single proprietorship (sole trader) or a 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 get and run all the stuff. If this is the way you wish to go, then in your situation to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You seem both the main shareholder along with the sole director of business. The company is legally regarded as the sole shareholder/director proprietary company. You may wonder why anyone would would prefer to register to be a sole proprietary company associated with as one proprietorship.
Well, you will find real benefits of being registered as a sole shareholder/director company. Below are some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a firm is registered with the ASIC in addition to an ACN recently been is issued, the company becomes an authorized entity using a personality is actually why independent and separate by reviewing the shareholder. The aspect has important facts legally: A strong can start contracts in the own name and it will also sue, and be sued.
If a company is in debt, the money owed does not automatically get to be the debt of this shareholder. Being a result, a civil lawsuit for the collection of an amount of cash against the company is not inevitably a court action 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 law suit. This built-in limitation is not available in single proprietorships or for sole sellers.
So in case you’re conducting business by yourself, and require limit organization liability, then the sole shareholder proprietary company is for you.
* Flexibility in ownership
If little grows in the foreseeable future and you would like to create incentives for your non-shareholder employees who have contributed towards the success of one’s company, started to be good method to better their involvement by transferring shares in vehicle to them.
This furthermore known to be a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings without required to terminate the legal status of organization.
Another advantage of the independent personality of the company is it may keep going for the duration of that registration, notwithstanding changes in the ownership among the company’s stocks. The death or retirement with regards to a shareholder maybe the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination with a company’s day-to-day lives.
You may one day decide at hand over the reins on the company to someone else, such as one of one’s experienced managers or employee-shareholders. Even style a change of directors, the company will remain in existence as its registered auto.
It is worthwhile speaking by using a legal adviser or accountant as to what is best structure for yourself and firm. Also different countries perhaps has different legislation on this so check locally also.
It may happen to register a company online, but since this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your online company subscription.