Are you considering going into business on your own without any collaborators? There are two business structures that may be appropriate for a smallish outfit like yours: a single proprietorship (sole trader) or 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 everthing. If this is the way you need 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 sole shareholder and the sole director of organization. The company is legally regarded for a sole shareholder/director proprietary company. You may wonder why anyone would like better to register as the sole proprietary company rather than as 1 particular proprietorship.
Well, that produce real benefits to being registered as a sole shareholder/director company. Every potential reasons individuals choose a company regarding your 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 legal entity using a personality which isn’t independent and separate by reviewing the shareholder. The aspect has important facts legally: A business can received contracts in the own name and will also sue, and be sued.
If a company is in debt, the owed does not automatically get to be the debt of the shareholder. As being a result, a civil lawsuit for the collection of a sum of money against the machines is never a law suit against the shareholder.
This is simply because the liability of a shareholder is proscribed to the need for his shareholdings unless he previously signed a personal guarantee and only 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 will need limit your enterprise liability, the actual sole shareholder proprietary company is for then you.
* Flexibility in ownership
If little grows later on and you wish to create incentives for your non-shareholder employees who have contributed into the success of your company, then a good approach is to better their involvement by transferring shares in an additional to people.
This furthermore known as a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without required to terminate the legal status of organization.
Another benefit of the independent personality from the company is that it may keep going for the duration of that registration, notwithstanding changes as ownership in the company’s features. The death or retirement for a shareholder or even the sale, transfer or assignment of the rights to a company’s shares will not mean the termination with a company’s every day life.
You may one day decide to hand over the reins on the company to someone else, regarding one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will still exist as its registered individual.
It is worthwhile speaking along with a legal adviser or accountant as coming from what is incredibly best structure on your own and firm. Also different countries may have different legislation on this so check locally too.
It is possible to register a company Online One Person Company Registration in India, nonetheless this can be a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your online company number.