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 everything. 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 seem both the sole 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 as a sole proprietary company instead of as in one proprietorship.
Well, there are some real benefits of being registered as a sole shareholder/director company. Here are some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC as well ACN is is issued, the company becomes an authorized entity having a personality is actually why independent and separate looking at the shareholder. The aspect has important facts legally: A company can decide on contracts in its own name and this may also sue, and be sued.
If a firm’s is in debt, the amount owed does not automatically end up being the debt on the shareholder. As being a result, a civil lawsuit for the product of a sum of money against group is never a legal action against the shareholder.
This is because the liability of a shareholder is limited to value of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole traders.
So when you find yourself conducting business by yourself, and require limit organization liability, after that your sole shareholder proprietary company is for most people.
* Flexibility in ownership
If your business grows in the future and will need create incentives for your non-shareholder employees who have contributed to your success of the company, then this good strategy is to improve their involvement by transferring shares in the company to people.
This is also known as being a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings getting required to terminate the legal status of the company.
Another advantage of the independent personality of the company is that it may remain for the duration of its registration, notwithstanding changes in ownership among the company’s stocks. The death or retirement with regards to a shareholder assaulted sale, transfer or assignment of the rights to some company’s shares will not mean the termination with a company’s day-to-day lives.
You may one day decide to give over the reins of the company to a person else, such as one of the experienced managers or employee-shareholders. Even dampness a change of directors, the company will remain in existence as its registered auto.
It is worth it speaking having a legal adviser or accountant as coming from what is extremely best structure on your own and firm. Also different countries may hold different legislation on this so check locally also.
It may be accomplished to register a company Online One Person Company Registration in India, but since this is a daunting prospect for you, there are appointed registered agents, who can advise and manage your company application.