Are you considering going into business on your own without any employees? There are two business structures which is 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 put in a company with only one person to get and run it all. If this is the way you wish to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You in order to be both truly the only shareholder and the sole director of your company. The company is legally regarded as being a sole shareholder/director proprietary company. You may wonder why anyone would choose to register to be a sole proprietary company associated with as in one proprietorship.
Well, you will find real advantages to being registered as a sole shareholder/director company. Spots potential reasons individuals choose a company with regards to a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC in addition to an ACN recently been is issued, the company becomes the best entity with a personality is actually independent and separate from its shareholder. The aspect has important facts legally: A business can received contracts in the own name and will also sue, and sued.
If a consultant is in debt, the owed doesn’t automatically end up being the debt of this shareholder. As being a result, a civil lawsuit for the range of an amount of cash against the organization is probably not a a lawsuit 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 to opt for the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole option traders.
So if you are conducting business by yourself, and you wish to limit organization liability, your sole shareholder proprietary company is for a person will.
* Flexibility in ownership
If little grows later on and you wish to create incentives for your non-shareholder employees who have contributed to the success of one’s company, as well as good approach is to better their involvement by transferring shares in the organization to them.
This is also known being a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings without being required to terminate the legal status of the organization.
Another benefit of the independent personality among the company is that it may continue to exist for the duration of that registration, notwithstanding changes in the ownership belonging to the company’s shares. The death or retirement with regards to a shareholder possibly the sale, transfer or assignment of the rights to some company’s shares will not mean the termination associated with company’s existence.
You may one day decide to hand over the reins belonging to the company to a person else, regarding one of the experienced managers or employee-shareholders. Even whenever there is a change of directors, the company will still exist as its registered auto.
It is worth it speaking with a legal adviser or accountant as from what is extremely best structure off the web and your organization. Also different countries will often have different legislation on this so check locally also.
It is possible to Register One Person Company in India Online a company online, , however, if this is a daunting prospect for you, there are appointed registered agents, who can advise and manage your online company listing.