Are you considering going into business on your own without any employees? There are two business structures that may be 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 put in a company with just one person to get and run all the stuff. If this is the way you want 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 sole shareholder as well as the sole director of your company. The company is legally regarded as a sole shareholder/director proprietary company. You may wonder why anyone would decide either to register for a sole proprietary company regarding as a single proprietorship.
Well, there are real good things about being registered as a sole shareholder/director company. Read on for some potential reasons individuals pick a company of every sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC as well ACN recently been is issued, the company becomes a legal entity along with a personality that is independent and separate looking at the shareholder. The aspect has important facts legally: A professional can received contracts in the own name and this may sue, and sued.
If a company is in debt, the owed doesn’t automatically become the debt of this shareholder. Being a result, a civil lawsuit for the collection of an amount of cash against the machines is not inevitably a law suit against the shareholder.
This is because the liability of a shareholder is fixed to the price of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing legal action. This built-in limitation isn’t available in single proprietorships or for sole options traders.
So for anyone who is conducting business by yourself, and require limit organization liability, the actual sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your grows later on and require create incentives for your non-shareholder employees who have contributed into the success of your company, as well as good approach is to strengthen their involvement by transferring shares in a lot more claims to people.
This likewise known to be a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings getting required to terminate the legal status of the organization.
Another benefit of the independent personality within the company is it may continue to exist for the duration of that registration, notwithstanding changes all of the ownership of the company’s explains. The death or retirement of a shareholder assaulted sale, transfer or assignment of the rights together with a company’s shares will not mean the termination associated with company’s existing.
You may one day decide at hand over the reins of the company to someone else, such as one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain as its registered auto.
It is worth it speaking having a legal adviser or accountant as coming from what is extremely best structure for yourself and your business. Also different countries will often have different legislation on this so check locally too.
It may be accomplished to register a company Online OPC Registration in India, nonetheless, if this is often a daunting prospect for you, there are appointed registered agents, who are going to advise and manage your online company application.