Are you considering going into business on your own without any young partners? There are two business structures that are appropriate for any small outfit like yours: a single proprietorship (sole trader) potentially registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to put in a company with only one person to have and run it all. 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 will be both the shareholder along with the sole director of business. 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 rather than as certain proprietorship.
Well, that produce 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 or company is registered with the ASIC along with an ACN has been is issued, the company becomes the best entity having a personality which isn't independent and separate from the shareholder. The aspect has important facts legally: A business can start contracts in the own name and this may also sue, and sued.
If a business enterprise is in debt, cash owed does not automatically end up being the debt of this shareholder. For a result, a civil lawsuit for the gathering of a sum of money against the machines is not necessarily a court action against the shareholder.
This is that the liability of a shareholder is restricted to value 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 little liability, your sole shareholder proprietary clients are for you.
* Flexibility in ownership
If your grows later on and you would like to create incentives for your non-shareholder employees who have contributed to your success of the company, then a good technique to grow their involvement by transferring shares in the organization to them.
This is also known as a stock offer. 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 of the company is it may remain for the duration of the company's registration, notwithstanding changes in ownership among the company's stocks. The death or retirement to a shareholder or 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, pertaining to instance one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will stay alive as its registered private.
It is worthwhile speaking with a legal adviser or accountant as from what is extremely best structure independently and your organization. Also different countries perhaps has different legislation on this so check locally also.
It may be accomplished to register a company Online One Person Company Registration in India, but if this is often a daunting prospect for you, there are appointed registered agents, who can advise and manage your online company subscription.