Are you considering going into business on your own without any partners? There are two business structures that are appropriate for a little 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 only one person to enjoy and run it all. If this is the way you wish to go, then in your situation to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You seem both truly the only shareholder along with the sole director of business. The company is legally regarded for a sole shareholder/director proprietary contractor. You may wonder why anyone would decide either to register to be a sole proprietary company regarding as 1 particular proprietorship.
Well, there are real benefits to being registered as a sole shareholder/director company. Here are some potential reasons individuals choose a company of a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC in addition to an ACN is is issued, the company becomes a legal entity having a personality that is independent and separate from its shareholder. The aspect has important facts legally: A business can enter into contracts in its own name and it can also sue, and sued.
If a business enterprise is in debt, cash owed doesn’t automatically end up being the debt within the shareholder. As being a result, a civil lawsuit for the gathering of a sum of money against the organization is probably not a court action against the shareholder.
This happens because the liability of a shareholder has limitations to the value of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole option traders.
So for anyone who is conducting business by yourself, and require limit organization liability, after that your sole shareholder proprietary company is for families.
* Flexibility in ownership
If your online business grows in the future and you wish to create incentives for your non-shareholder employees who have contributed towards the success of one’s company, then a good strategy is to increase their involvement by transferring shares in the organization to all of them.
This likewise known for a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings without being required to terminate the legal status of they.
Another benefit of the independent personality with the company is that it may persist for the duration from the registration, notwithstanding changes in ownership of your company’s shares. The death or retirement to a shareholder or even the sale, transfer or assignment of the rights to a company’s shares will not mean the termination about a company’s presence.
You may one day decide at hand over the reins on the company to a person else, because one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will stay alive as its registered individual.
It is worth it speaking having a legal adviser or accountant as as to what is obtaining structure on your own and firm. Also different countries perhaps has different legislation on this so check locally too.
It can be to register a company online, but if this is a daunting prospect for you, there are appointed registered agents, who will advise and manage your company number.