Are you considering going into business on your own without any two people? There are two business structures that are appropriate for a good 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 have and run whatever. If this is the way you need to go, then all you have to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You will be both truly the only shareholder along with the sole director of business. The company is legally regarded being a sole shareholder/director proprietary venture. You may wonder why anyone would would prefer to register as the sole proprietary company instead of as a single proprietorship.
Well, there are real reasons to being registered as a sole shareholder/director company. Every potential reasons individuals select a company with regards to a sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC with an ACN may be is issued, the company becomes an authorized entity with a personality is actually independent and separate looking at the shareholder. The aspect has important facts legally: A professional can received contracts in its own name and this may also sue, and sued.
If a company is in debt, the bucks owed does not automatically get to be the debt on the shareholder. As the result, a civil lawsuit for the gathering of a sum of money against group is not necessarily a law suit against the shareholder.
This is simply because the liability of a shareholder is fixed to the value of his shareholdings unless he previously signed a personal guarantee in favor of 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 wish to limit your enterprise liability, the actual sole shareholder proprietary clients are for most people.
* Flexibility in ownership
If your online business grows later on and require create incentives for your non-shareholder employees who have contributed into the success of your company, started to be good approach is to grow their involvement by transferring shares in an additional to them.
This likewise known as being a stock route. Because of the company’s structure, you can accommodate non share-holder employees into the particular shareholdings without required to terminate the legal status of organization.
Another regarding the independent personality from the company is that it may continue to exist for the duration of its registration, notwithstanding changes as ownership of your company’s stock shares. The death or retirement for a shareholder or even the sale, transfer or assignment of the rights to a company’s shares will not mean the termination associated with company’s existence.
You may one day decide at hand over the reins with the company to a person else, pertaining to instance one of one’s experienced managers or employee-shareholders. Even whenever there is a change of directors, the company will remain as its registered auto.
It is worthwhile speaking along with a legal adviser or accountant as to what is extremely best structure on your own and your company. Also different countries may hold different legislation on this so check locally too.
It is workable to register a company online, but since this is often a daunting prospect for you, there are appointed registered agents, who will advise and manage your own company subscription.