Is it possible 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 is appropriate for a good small outfit like yours: a single proprietorship (sole trader) probably a 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 Company Registration in India online person to get the and run everthing. If this is the way you need to go, then effortless to do is indicate your choice in the ASIC registration application as “a proprietary company with limited liability”.
You seem both truly the only shareholder along with the sole director of organization. The company is legally regarded as being a sole shareholder/director proprietary small business. You may wonder why anyone would choose to register as a sole proprietary company as compared to as a single proprietorship.
Well, there are real benefits of being registered as a sole shareholder/director company. Read on for some potential reasons individuals choose a company on a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC in addition to an ACN is is issued, the company becomes a legitimate entity along with a personality is actually why independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can start contracts in its own name and it can also sue, and sued.
If a company is in debt, the amount owed doesn’t automatically end up being the debt of this shareholder. Being a result, a civil lawsuit for the collection of an amount of cash against the machines is probably not a a lawsuit against the shareholder.
This happens because the liability of a shareholder is restricted to the cost of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing law suit. This built-in limitation isn’t available in single proprietorships or for sole traders.
So in case you’re conducting business by yourself, and require limit your business liability, then the sole shareholder proprietary company is for families.
* Flexibility in ownership
If your grows in the foreseeable future and you would like to create incentives for your non-shareholder employees who have contributed into the success of one’s company, then a good method to improve their involvement by transferring shares in the company to him.
This furthermore known as a stock offer. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings getting required to terminate the legal status of they.
Another benefit of the independent personality within the company is it may continue to exist for the duration of its registration, notwithstanding changes as ownership of your company’s stock shares. The death or retirement to a shareholder or even the sale, transfer or assignment of the rights to some company’s shares will not mean the termination of a company’s existence.
You may one day decide handy over the reins on the company to a person else, since one of your experienced managers or employee-shareholders. Even when there is a change of directors, the company will stay alive as its registered individual.
It is worthwhile speaking along with a legal adviser or accountant as coming from what is extremely best structure off the web and company. Also different countries may have different legislation on this so check locally too.
It may happen to register a company online, nonetheless, if this is really a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your own company application.