Is it feasible For One Person to make a Company?
Are you considering going into business on your own without any employees? There are two business structures that are appropriate for a 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 just one person to get and run it all. If this is the way you wish to go, then effortless to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You will be both the shareholder as well as the sole director of enterprise. The company is legally regarded as a sole shareholder/director proprietary small business. You may wonder why anyone would choose to register like a sole proprietary company rather than as a single proprietorship.
Well, there are real benefits to being registered as a sole shareholder/director company. Below are some potential reasons individuals select a company regarding your sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC along with an ACN been recently is issued, the company becomes an authorized entity along with a personality which isn’t independent and separate by reviewing the shareholder. The aspect has important facts legally: An agency can enter into contracts in its own name and this may sue, and be sued.
If an enterprise is in debt, cash owed doesn’t automatically become the debt on the shareholder. As a result, a civil lawsuit for the product of a sum of money against the machines is never a court action against the shareholder.
This is that the liability of a shareholder is restricted to the value of his shareholdings unless he previously signed a personal guarantee to opt for the one pursuing a lawsuit. This built-in limitation is not available in single proprietorships or for sole options traders.
So if you find yourself conducting business by yourself, and require limit organization liability, the actual sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your business grows in the foreseeable future and you want to create incentives for your non-shareholder employees who have contributed to the success of your company, as well as good method to better their involvement by transferring shares in vehicle to these individuals.
This likewise known to be a stock option. 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 from the company is that it may persist for the duration of the company’s registration, notwithstanding changes all of the ownership belonging to the company’s shares. The death or retirement in the place of shareholder maybe the sale, transfer or assignment of the rights together with a 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 with the company to someone else, pertaining to instance one of one’s experienced managers or employee-shareholders. Even when there is a change of directors, the company will survive as its registered car.
It is worthwhile speaking having a legal adviser or accountant as as to what is incredibly best structure for yourself and your business. Also different countries may hold different legislation on this so check locally too.
It is workable to register a company Online OPC Registration in India, but if this is really a daunting prospect for you, there are appointed registered agents, to advise and manage your company subscription.