Are you considering going into business on your own without any collaborators? There are two business structures that is appropriate for any small 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 just one person to get the and run everything. If this is the way you wish to go, then in your situation to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You seem both the sole shareholder and the sole director of organization. The company is legally regarded being a sole shareholder/director proprietary contractor. You may wonder why anyone would choose to register to be a sole proprietary company instead of as 1 particular proprietorship.
Well, there are some real advantages to being registered as a sole shareholder/director company. Here are some potential reasons individuals choose a company of a sole proprietorship:
* Legal personality of company.
Once a business or company is registered with the ASIC with an ACN recently been is issued, the company becomes a legitimate entity by using a personality that is independent and separate looking at the shareholder. The aspect has important facts legally: A business can creep into contracts in the own name and this may sue, and sued.
If a company is in debt, the owed doesn’t automatically end up being the debt belonging to the shareholder. For a result, a civil lawsuit for the gathering of a sum of money against the corporation is probably not a legal action against the shareholder.
This is simply because the liability of a shareholder is proscribed to the need for his shareholdings unless he previously signed a personal guarantee just the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole sellers.
So if you find yourself conducting business by yourself, and you desire to limit your business liability, after that your sole shareholder proprietary clients are for you.
* Flexibility in ownership
If your online business grows in the future and will need create incentives for your non-shareholder employees who have contributed to your success of one’s company, then came good way is to grow their involvement by transferring shares in an additional to people.
This furthermore known to be a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings becoming required to terminate the legal status of the organization.
Another advantage of the independent personality from the company is it may continue to exist for the duration of registration, notwithstanding changes in the ownership of the company’s shares. The death or retirement with regards to a shareholder possibly the sale, transfer or assignment of the rights to some company’s shares will not mean the termination associated with company’s day-to-day lives.
You may one day decide at hand over the reins on the company to someone else, since one of your experienced managers or employee-shareholders. Even whenever there is a change of directors, the company will still exist as its registered auto.
It is worth it speaking using a legal adviser or accountant as from what is obtaining structure by thinking through yourself and company. Also different countries perhaps has different legislation on this so check locally too.
It can be to register a company online, but if this is a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your online company registration.