Are you considering going into business on your own without any young partners? There are two business structures that are appropriate for a good small 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 set up a company with only one person to get and run everything. If this is the way you wish to go, then all you have to do is indicate your choice in the ASIC registration application as "a proprietary company with limited liability".
You seem both the only shareholder along with the sole director of your company. The company is legally regarded as a sole shareholder/director proprietary venture. You may wonder why anyone would would prefer to register as a sole proprietary company as compared to as one proprietorship.
Well, plenty of real benefits of being registered as a sole shareholder/director company. Spots potential reasons individuals pick a company with regards to a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC in addition to an ACN is is issued, the company becomes a lawful entity using a personality can be independent and separate looking at the shareholder. The aspect has important facts legally: A strong can creep into contracts in its own name and it can also sue, and sued.
If a firm's is in debt, cash owed doesn't automatically become the debt of the shareholder. As a result, a civil lawsuit for the product of a sum of money against the organization is not ever a legal action against the shareholder.
This happens because the liability of a shareholder has limitations to the value of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing law suit. This built-in limitation isn't available in single proprietorships or for sole sellers.
So in case you're conducting business by yourself, and will need limit organization liability, the actual sole shareholder proprietary company is for a person will.
* Flexibility in ownership
If your business grows in the future and you want to create incentives for your non-shareholder employees who have contributed into the success of one's company, as well as good approach is to grow 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 enterprise shareholdings without required to terminate the legal status of the company.
Another benefit of the independent personality of the company is it may keep going for the duration from the OPC Registration Online in India, notwithstanding changes in ownership of the company's stocks. The death or retirement with regards to a shareholder or the sale, transfer or assignment of the rights together with a company's shares will not mean the termination associated with company's existing.
You may one day decide at hand over the reins of the company to someone else, regarding one of the experienced managers or employee-shareholders. Even whenever there is a change of directors, the company will remain in existence as its registered individual.
It is worthwhile speaking having a legal adviser or accountant as to what is the best structure for yourself and company. Also different countries could different legislation on this so check locally too.
It can be to register a company online, nonetheless, if this is really a daunting prospect for you, there are appointed registered agents, who can advise and manage your online company application.