Are you considering going into business on your own without any employees? There are two business structures that may be appropriate for any 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 setup a company with only one person to enjoy and run all the stuff. If this is the way you wish 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 shareholder as well as the sole director of business. The company is legally regarded being a sole shareholder/director proprietary company. You may wonder why anyone would choose to register to be a sole proprietary company instead of as a single proprietorship.
Well, there are some real reasons to being registered as a sole shareholder/director company. Here are some potential reasons individuals select a company with regards to a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC along with an ACN has been is issued, the company becomes a legal entity having a personality can be independent and separate from its shareholder. The aspect has important facts legally: A professional can received contracts in the own name and this may sue, and be sued.
If a business enterprise is in debt, the bucks owed doesn’t automatically get to be the debt on the shareholder. As the result, a civil lawsuit for the collection of a sum of money against the company is not ever a court action against the shareholder.
This is simply because the liability of a shareholder has limitations to the cost of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing legal action. This built-in limitation isn’t available in single proprietorships or for sole sellers.
So when you find yourself conducting business by yourself, and you wish to limit your enterprise liability, then sole shareholder proprietary clients are for families.
* Flexibility in ownership
If your business grows later on and you want to create incentives for your non-shareholder employees who have contributed into the success of one’s company, then came good method to grow their involvement by transferring shares in a lot more claims to all of them.
This furthermore known being a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings without being required to terminate the legal status of enterprise.
Another benefit of the independent personality of the company is it may remain for the duration from the registration, notwithstanding changes in ownership of the company’s stock shares. The death or retirement with regards to a shareholder assaulted sale, transfer or assignment of the rights to be able to company’s shares will not mean the termination with a company’s presence.
You may one day decide handy over the reins of the company to someone else, because one of your experienced managers or employee-shareholders. Even style a change of directors, the OPC Company Registration in India Online will still exist as its registered car.
It is worthwhile speaking using a legal adviser or accountant as as to what is the best structure for yourself and your organization. Also different countries perhaps has different legislation on this so check locally also.
It is possible to register a company online, nonetheless, if this can be a daunting prospect for you, there are appointed registered agents, who can advise and manage your own company registration.