Are you considering going into business on your own without any employees? There are two business structures that may be appropriate for a little outfit like yours: a single proprietorship (sole trader) probably 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 everthing. 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 in order to be both the sole shareholder and the sole director of enterprise. The company is legally regarded as being a sole shareholder/director proprietary small business. You may wonder why anyone would like better to register to be a sole proprietary company instead of as in one proprietorship.
Well, plenty of real good things about being registered as a sole shareholder/director company. Here are some potential reasons individuals choose a OPC Company Registration in India Online of every sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC and an ACN is is issued, the company becomes a legal entity using a personality which isn’t independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can received contracts in the own name and will also sue, and be sued.
If an enterprise is in debt, the amount owed doesn’t automatically become the debt within the shareholder. For a result, a civil lawsuit for the collection of an amount of cash against the machines is probably not a legal action against the shareholder.
This is because the liability of a shareholder has limitations to the price of his shareholdings unless he previously signed a personal guarantee just the one pursuing court action. This built-in limitation is not available in single proprietorships or for sole sellers.
So in case you’re conducting business by yourself, and will need limit your business liability, then the sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your grows later on and you want to create incentives for your non-shareholder employees who have contributed to the success of one’s company, then came good way is to strengthen their involvement by transferring shares in an additional to him.
This likewise known to be a stock choosing. 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 the company.
Another associated with the independent personality of the company is that it may continue to exist for the duration of the company’s registration, notwithstanding changes all of the ownership among the company’s features. The death or retirement in the place of shareholder maybe the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination of a company’s existing.
You may one day decide at hand over the reins with the company to a person else, such as one of your experienced managers or employee-shareholders. Even dampness a change of directors, the company will still exist as its registered self.
It is worth it speaking using a legal adviser or accountant as from what is best structure on your own and company. Also different countries will often have different legislation on this so check locally as well.
It may be accomplished to register a company online, , however, if this can be a daunting prospect for you, there are appointed registered agents, who can advise and manage your online company listing.