Are you considering going into business on your own without any employees? There are two business structures which really can be appropriate for a little outfit like yours: a single proprietorship (sole trader) or 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 get and run everthing. 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 become both the sole shareholder and also the sole director of business. The company is legally regarded being a sole shareholder/director proprietary small business. You may wonder why anyone would insurance company register for a sole proprietary company instead of as a single proprietorship.
Well, there are some real benefits to being registered as a sole shareholder/director company. Every potential reasons individuals pick a company of every sole proprietorship:
* Legal personality of company.
Once a firm is registered with the ASIC in addition to an ACN has been is issued, the company becomes a lawful entity along with a personality that is independent and separate from the shareholder. The aspect has important facts legally: A business can enter into contracts in its own name and it will also sue, and be sued.
If a business enterprise is in debt, the money owed does not automatically end up being the debt of this shareholder. Being a result, a civil lawsuit for the collection of a sum of money against the company 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 is not available in single proprietorships or for sole currency traders.
So when you find yourself conducting business by yourself, and will need limit your enterprise liability, your sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If little grows in the future and you would like to create incentives for your non-shareholder employees who have contributed for the success of the company, then this good approach is to better their involvement by transferring shares in the company to these individuals.
This can also known for a stock option. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings without being required to terminate the legal status of they.
Another advantage of the independent personality of the company is that it may keep going for the duration from the registration, notwithstanding changes in the ownership in the company’s stock shares. The death or retirement in the place of shareholder possibly the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination of a company’s presence.
You may one day decide to hand over the reins with the company to someone else, because One Person Company Registration in India online of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain in existence as its registered auto.
It is worthwhile speaking by using a legal adviser or accountant as as is best structure on your own and your business. Also different countries may have different legislation on this so check locally also.
It is workable to register a company online, nonetheless, if this can be a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your own company registration.