Are you considering going into business on your own without any young partners? There are two business structures that is 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 put in a company with only one person to get the and run everything. 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 main shareholder and the sole director of enterprise. The company is legally regarded as being a sole shareholder/director proprietary contractor. You may wonder why anyone would insurance company register like a sole proprietary company as compared to as a single proprietorship.
Well, that produce real reasons to being registered as a sole shareholder/director company. Every potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC and an ACN recently been is issued, the company becomes an authorized entity by using a personality that is independent and separate looking at the shareholder. The aspect has important facts legally: A professional can enter into contracts in the own name and it will also sue, and sued.
If a company is in debt, cash owed does not automatically get to be the debt of this shareholder. For a result, a civil lawsuit for the gathering of an amount of cash against the organization is not inevitably a law suit against the shareholder.
This is they the liability of a shareholder has limitations to the cost of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing a lawsuit. This built-in limitation isn’t available in single proprietorships or for sole traders.
So if you are conducting business by yourself, and you should limit little liability, your sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your business grows in the foreseeable future and require create incentives for your non-shareholder employees who have contributed to the success of the company, then a good technique to strengthen their involvement by transferring shares in the organization to people.
This can also known for a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings becoming required to terminate the legal status of organization.
Another associated with the independent personality among the company is that it may keep going for the duration of the company’s registration, notwithstanding changes in the ownership of your company’s explains. The death or retirement of a shareholder maybe the 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 with the company to a person else, because one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will stay alive as its registered self.
It is worth it speaking using a legal adviser or accountant as to what is the best structure for yourself and firm. Also different countries could different legislation on this so check locally also.
It is possible to register a company Online OPC Registration in India, but since this can be a daunting prospect for you, there are appointed registered agents, who can advise and manage your own company listing.