Are you considering going into business on your own without any partners? There are two business structures that may be 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 setup a company with only one person to get the and run whatever. If this is the way you need to go, then in your situation to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You become both the sole shareholder as well as 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 insurance company register for a sole proprietary company as compared to as one proprietorship.
Well, that produce real benefits of being registered as a sole shareholder/director company. Read on for some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC along with an ACN has been is issued, the company becomes a legal entity by using a personality can be independent and separate from its shareholder. The aspect has important facts legally: A business can creep into contracts in the own name and will also sue, and be sued.
If a consultant is in debt, the money owed doesn’t automatically become the debt on the shareholder. Being a result, a civil lawsuit for the collection of a sum of money against the company is probably not a a lawsuit against the shareholder.
This happens because the liability of a shareholder has limitations to value of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing legal action. This built-in limitation is not available in single proprietorships or for sole options traders.
So if you find yourself conducting business by yourself, and you wish to limit on the web liability, the actual sole shareholder proprietary company is for you.
* Flexibility in ownership
If your Online One Person Company Registration in India business grows in the future and you wish to create incentives for your non-shareholder employees who have contributed into the success of the company, started to be good way is to better their involvement by transferring shares in the company to him.
This furthermore known to be a stock ability. 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 regarding the independent personality with the company is that it may keep going for the duration of its registration, notwithstanding changes all of the ownership of your company’s shares. The death or retirement of a shareholder assaulted sale, transfer or assignment of the rights in order to company’s shares will not mean the termination with a company’s existing.
You may one day decide to hand over the reins with the company to a person else, regarding one of the experienced managers or employee-shareholders. Even style a change of directors, the company will survive as its registered car.
It is worthwhile speaking using a legal adviser or accountant as from what is best structure off the web and your business. Also different countries may have different legislation on this so check locally too.
It can be to register a company online, but if this can be a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your company application.