Are you considering going into business on your own without any two people? There are two business structures that are appropriate for a smallish 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 setup a company with just one person to own and run all the stuff. If this is the way you want to go, then all you have to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You become both the main shareholder and also the sole director of your company. The company is legally regarded as the sole shareholder/director proprietary venture. You may wonder why anyone would decide either to register to be a sole proprietary company instead of as 1 particular proprietorship.
Well, that produce real benefits to being registered as a sole shareholder/director company. Spots potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC in addition to an ACN recently been is issued, the company becomes an authorized entity by using a personality is actually independent and separate from its shareholder. The aspect has important facts legally: An agency can creep into contracts in its own name and it can also sue, and sued.
If a business enterprise is in debt, cash owed does not automatically become the debt on the shareholder. As being a result, a civil lawsuit for the gathering of a sum of money against the corporation is probably not a law suit against the shareholder.
This is simply because the liability of a shareholder is fixed to value of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing legal action. 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 wish to limit your business liability, then sole shareholder proprietary clients are for most people.
* Flexibility in ownership
If your business grows later on and you want to create incentives for your non-shareholder employees who have contributed for the success of one’s company, then a good approach is to grow their involvement by transferring shares in the organization to people.
This is also known as a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without being required to terminate the legal status of organization.
Another benefit of the independent personality with the company is it may keep going for the duration from the registration, notwithstanding changes regarding ownership of the company’s stocks. The death or retirement for a shareholder or even the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination with a company’s existence.
You may one day decide handy over the reins for this company to a person else, pertaining to instance one of the experienced managers or employee-shareholders. Even style a change of directors, the company will still exist as its registered auto.
It is worth it speaking using a legal adviser or accountant as as to what is extremely best structure for yourself and firm. Also different countries perhaps has different legislation on this so check locally too.
It may be accomplished to register a company online, but since this is often a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your online company listing.