Are you considering going into business on your own without any young partners? There are two business structures that is appropriate for a 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 set up a company with just one person to get and run it all. 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 will be both the shareholder along with the sole director of your company. The company is legally regarded as a sole shareholder/director proprietary small business. You may wonder why anyone would decide either to register to be a sole proprietary company instead of as one proprietorship.
Well, there are some real reasons to 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 has been is issued, the company becomes an authorized entity using a personality is actually independent and separate by reviewing the shareholder. The aspect has important facts legally: A strong can enter into contracts in the own name and this may also sue, and sued.
If a firm’s is in debt, the amount owed doesn’t automatically end up being the debt belonging to the shareholder. Being a result, a civil lawsuit for the product of a sum of money against group is not inevitably a a lawsuit against the shareholder.
This is that the liability of a shareholder is restricted to the need for his shareholdings unless he previously signed a personal guarantee and only the one pursuing a lawsuit. This built-in limitation isn’t available in single proprietorships or for sole options traders.
So if you are conducting business by yourself, and will need limit your enterprise liability, your sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your online business grows in the foreseeable future and you would like to create incentives for your non-shareholder employees who have contributed to your success of your company, then this good strategy is to increase their involvement by transferring shares in the organization to these individuals.
This furthermore known being a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings becoming required to terminate the legal status of organization.
Another advantage of the independent personality with the company is that it may persist for the duration of registration, notwithstanding changes as ownership of your company’s shares. The death or retirement to a shareholder maybe the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination regarding your company’s existence.
You may one day decide to give over the reins with the company to someone else, pertaining to instance one of the experienced managers or employee-shareholders. Even you may find a change of directors, the company will stay alive as its registered individual.
It is worthwhile speaking having a legal adviser or accountant as from what is best structure by thinking through yourself and your business. Also different countries perhaps has different legislation on this so check locally too.
It may be accomplished to register a company Online One Person Company Registration in India, , however, if this is a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your own company subscription.