Is it feasible For One Person to form a Company?
Are you considering going into business on your own without any partners? There are two business structures that may be appropriate for a good 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 pitch a company with just one person to get the and run all the stuff. If this is the way you want 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 will be both truly the only shareholder and the sole director of enterprise. The company is legally regarded as being a sole shareholder/director proprietary company. You may wonder why anyone would insurance company register as the sole proprietary company instead of as 1 particular proprietorship.
Well, you will find real good things about being registered as a sole shareholder/director company. Below are some potential reasons individuals select a company on a sole proprietorship:
* Legal personality of company.
Once a business is registered with the ASIC in addition to an ACN been recently is issued, the company becomes a lawful entity having a personality that is independent and separate looking at the shareholder. The aspect has important facts legally: An agency can start contracts in its own name and this may sue, and be sued.
If a firm’s is in debt, the money owed does not automatically end up being the debt of the shareholder. As a result, a civil lawsuit for the collection of an amount of cash against the organization is not necessarily a court action against the shareholder.
This happens because the liability of a shareholder is proscribed to the value of his shareholdings unless he previously signed a personal guarantee and only the one pursuing court action. This built-in limitation is not available in single proprietorships or for sole currency traders.
So for anyone who is conducting business by yourself, and you should limit little liability, then the sole shareholder proprietary company is for most people.
* Flexibility in ownership
If your business grows in the future and you want to create incentives for your non-shareholder employees who have contributed to your success of the company, started to be good technique to strengthen their involvement by transferring shares in an additional to all of them.
This likewise known for a stock option. Because of the company’s structure, you can accommodate non share-holder employees into enterprise shareholdings without being required to terminate the legal status of enterprise.
* Continuity
Another advantage of the independent personality from the company is that it may persist for the duration of the company’s registration, notwithstanding changes as ownership belonging to the company’s shares. The death or retirement in the place of shareholder possibly the sale, transfer or assignment of the rights to be able to company’s shares will not mean the termination associated with company’s existing.
You may one day decide at hand over the reins belonging to the company to a person else, regarding one of your experienced managers or employee-shareholders. Even style a change of directors, the company will survive as its registered private.
It is worth it speaking by using a legal adviser or accountant as to what is incredibly best structure independently and company. Also different countries perhaps has different legislation on this so check locally as well.
It is workable to Register One Person Company in India Online a company online, , however, if this can be a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your online company registration.
