Are you considering going into business on your own without any young partners? There are two business structures that may be appropriate for a little outfit like yours: a single proprietorship (sole trader) potentially 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 and run everything. 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 in order to both the shareholder along with the sole director of firm. The company is legally regarded as being a sole shareholder/director proprietary company. You may wonder why anyone would like better to register like a sole proprietary company as compared to as one proprietorship.
Well, there are real advantages to being registered as a sole shareholder/director company. Here are some potential reasons individuals select a company of a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC with an ACN has been is issued, the company becomes a lawful entity using a personality is actually independent and separate from its shareholder. The aspect has important facts legally: A professional can enter into contracts in the own name and this may also sue, and be sued.
If a company is in debt, the money owed does not automatically become the debt belonging to the shareholder. As being a result, a civil lawsuit for the collection of an amount of cash against the company is not ever a legal action against the shareholder.
This happens because the liability of a shareholder is fixed to the value of his shareholdings unless he previously signed a personal guarantee just the one pursuing court action. This built-in limitation is not available in single proprietorships or for sole traders.
So if you are conducting business by yourself, and you desire to limit little liability, your sole shareholder proprietary company is for you.
* Flexibility in ownership
If your business grows in the future and require create incentives for your non-shareholder employees who have contributed to your success of the company, then this good strategy is to strengthen their involvement by transferring shares in an additional to him.
This furthermore known as a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings without required to terminate the legal status of organization.
Another regarding the independent personality of the company is it may keep going for the duration of that registration, notwithstanding changes in ownership belonging to the company’s stocks. The death or retirement to a shareholder possibly the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination of a company’s existing.
You may one day decide handy over the reins for this company to a person else, regarding one of the experienced managers or employee-shareholders. Even style a change of directors, the company will remain as its registered car.
It is worthwhile speaking by using a legal adviser or accountant as from what is incredibly best structure for yourself and your company. Also different countries may have different legislation on this so check locally as well.
It may be accomplished to register a company online, nonetheless this is often a daunting prospect for you, there are appointed registered agents, who will advise and manage your own company listing.