Are you considering going into business on your own without any partners? There are two business structures which really can be appropriate for a good 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 pitch a company with only one person to have and run all the stuff. 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 will be both the main shareholder as well as the sole director of enterprise. The company is legally regarded as a sole shareholder/director proprietary venture. You may wonder why anyone would choose to register as a sole proprietary company regarding as certain proprietorship.
Well, there are real benefits of being registered as a sole shareholder/director company. Spots potential reasons individuals select a company on 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 by using a personality can be independent and separate by reviewing the shareholder. The aspect has important facts legally: An agency can creep into contracts in the own name and this may also sue, and be sued.
If an enterprise is in debt, the bucks owed doesn’t automatically become the debt of the shareholder. For a result, a civil lawsuit for the product of an amount of cash against the company is not inevitably a court action against the shareholder.
This is that the liability of a shareholder is limited to the cost of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing court action. This built-in limitation is not available in single proprietorships or for sole currency traders.
So if you are conducting business by yourself, and you should limit little liability, your sole shareholder proprietary company is for families.
* Flexibility in ownership
If your grows in the foreseeable future and you wish to create incentives for your non-shareholder employees who have contributed for the success of one’s company, started to be good method to better their involvement by transferring shares in the company to him.
This likewise known to be a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings becoming required to terminate the legal status of they.
* Continuity
Another benefit of the independent personality of the company is that it may keep going for the duration of that registration, notwithstanding changes regarding ownership among the company’s explains. The death or retirement of a shareholder or even the sale, transfer or assignment of the rights to be able to company’s shares will not mean the termination regarding your company’s existence.
You may one day decide handy over the reins with the company to someone else, pertaining to instance one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will survive as its registered private.
It is worthwhile speaking by using a legal adviser or accountant as to what is extremely best structure on your own and your business. Also different countries could different legislation on this so check locally as well.
It may happen to register a company Online One Person Company Registration in India, but since this is a daunting prospect for you, there are appointed registered agents, who will advise and manage your own company application.