Are you considering going into business on your own without any partners? There are two business structures which really can be appropriate for a smallish 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 just one person to own 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 registration application as “a proprietary company with limited liability”.
You seem both the shareholder as well as the sole director of business. The company is legally regarded as being a sole shareholder/director proprietary company. You may wonder why anyone would would prefer to register as a sole proprietary company regarding as a single proprietorship.
Well, there are some real reasons to being registered as a sole shareholder/director company. Read on for some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC as well ACN is is issued, the company becomes an authorized entity by using a personality that is independent and separate from the shareholder. The aspect has important facts legally: A business can received contracts in its own name and this may sue, and sued.
If a consultant is in debt, the owed does not automatically end up being the debt of this shareholder. Being a result, a civil lawsuit for the product range of an amount of cash against the machines is probably not a legal action against the shareholder.
This happens 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 court action. This built-in limitation is not available in single proprietorships or for sole sellers.
So if you are conducting business by yourself, and will need limit your business liability, then sole shareholder proprietary clients are for families.
* Flexibility in ownership
If your grows later on and you would like to create incentives for your non-shareholder employees who have contributed for the success of your company, then this good strategy is to improve their involvement by transferring shares in the organization to them.
This can also known being a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the corporate shareholdings without being required to terminate the legal status of they.
Another regarding the independent personality of the company is it may persist for the duration from the registration, notwithstanding changes all of the ownership among the company’s stocks. The death or retirement of a shareholder assaulted sale, transfer or assignment of the rights to some company’s shares will not mean the termination regarding your company’s existence.
You may one day decide handy over the reins on the company to a person else, since one of the experienced managers or employee-shareholders. Even style a change of directors, the company will survive as its registered individual.
It is worth it speaking having a legal adviser or accountant as as to what is extremely best structure on your own and your business. Also different countries may hold different legislation on this so check locally too.
It can be to register a company Online One Person Company Registration in India, but since this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your own company registration.