Are you considering going into business on your own without any partners? There are two business structures that may be appropriate for any small outfit like yours: a single proprietorship (sole trader) probably a registered OPC Company Registration in India Online.
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 get and run everthing. If this is the way you need to go, then from your to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You become both the only shareholder as well as 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 the sole proprietary company associated with as 1 particular proprietorship.
Well, plenty of real good things about being registered as a sole shareholder/director company. Below are some potential reasons individuals pick a company of every sole proprietorship:
* Legal personality of company.
Once a company is registered with the ASIC as well ACN is is issued, the company becomes a lawful entity by using a personality is actually why independent and separate from the shareholder. The aspect has important facts legally: A company can received contracts in the own name and this may also sue, and be sued.
If an enterprise is in debt, the money owed does not automatically get to be the debt of the shareholder. For a result, a civil lawsuit for the range of an amount of cash against the organization is not ever a legal action against the shareholder.
This is they the liability of a shareholder has limitations to value of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole traders.
So when you find yourself conducting business by yourself, and will need limit your enterprise liability, your sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your grows in the future and you want to create incentives for your non-shareholder employees who have contributed into the success of the company, then came good technique to grow their involvement by transferring shares in the company to people.
This is also known for a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the corporate shareholdings becoming required to terminate the legal status of enterprise.
Another advantage of the independent personality of the company is that it may keep going for the duration of registration, notwithstanding changes as ownership belonging to the company’s stocks. The death or retirement to a shareholder maybe the sale, transfer or assignment of the rights together with a company’s shares will not mean the termination about a company’s every day life.
You may one day decide to give over the reins with the company to someone else, pertaining to instance one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain as its registered auto.
It is worthwhile speaking by using a legal adviser or accountant as from what is extremely best structure for yourself and your organization. Also different countries could different legislation on this so check locally also.
It is workable to register a company online, , however, if this is a daunting prospect for you, there are appointed registered agents, to advise and manage your company number.