Are you considering going into business on your own without any employees? There are two business structures which really can be appropriate for a small outfit like yours: a single proprietorship (sole trader) look registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to set up a company with only one person to enjoy and run all the stuff. 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 seem both the sole shareholder and also the sole director of your company. The company is legally regarded as being a sole shareholder/director proprietary contractor. You may wonder why anyone would choose to register as the sole proprietary company rather than as one proprietorship.
Well, you will find real good things about being registered as a sole shareholder/director company. Read on for some potential reasons individuals select a company regarding your sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC along with an ACN recently been is issued, the company becomes a legitimate entity by using a personality can be independent and separate from the shareholder. The aspect has important facts legally: An agency can decide on contracts in its own name and this may sue, and be sued.
If an enterprise is in debt, the money owed does not automatically end up being the debt of the shareholder. As being a result, a civil lawsuit for the collection of a sum of money against the machines is not ever a a lawsuit against the shareholder.
This is simply because the liability of a shareholder is limited to the cost 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 currency traders.
So in case you’re conducting business by yourself, and require limit your business liability, then sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your online business grows in the future and you want to create incentives for your non-shareholder employees who have contributed to the success of one’s company, then came good way is to better their involvement by transferring shares in the company to all of them.
This furthermore known as being a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings without required to terminate the legal status of organization.
Another advantage of the independent personality with the company is that it may remain for the duration of that registration, notwithstanding changes as ownership of your company’s shares. The death or retirement with regards to a shareholder or the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination regarding your company’s existing.
You may one day decide handy over the reins belonging to the company to a person else, pertaining to instance one of your experienced managers or employee-shareholders. Even style a change of directors, the company will remain in existence as its registered private.
It is worthwhile speaking with a legal adviser or accountant as coming from what is obtaining structure on your own and your organization. Also different countries may have different legislation on this so check locally too.
It is possible to register a company Online OPC Registration in India, but if this is a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your own company application.