Is it possible For One Person to form a Company?
Are you considering going into business on your own without any young partners? There are two business structures that may be appropriate for a little 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 only one person to get 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 will be both truly the only shareholder along with the sole director of firm. The company is legally regarded as being a sole shareholder/director proprietary organization. You may wonder why anyone would insurance company register like a sole proprietary company rather than as 1 particular proprietorship.
Well, that produce real reasons to being registered as a sole shareholder/director company. Below are some potential reasons individuals pick a company of a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC with an ACN is is issued, the company becomes a legitimate entity using a personality is actually independent and separate looking at the shareholder. The aspect has important facts legally: A strong can decide on contracts in its own name and it can also sue, and be sued.
If an enterprise is in debt, the amount owed doesn’t automatically end up being the debt of this shareholder. As the result, a civil lawsuit for the product of a sum of money against the organization is not ever a legal action against the shareholder.
This is they the liability of a shareholder is proscribed to the price of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing law suit. This built-in limitation is not available in single proprietorships or for sole options traders.
So for anyone who is conducting business by yourself, and you should limit your enterprise liability, your sole shareholder proprietary clients are for then you.
* Flexibility in ownership
If your Online OPC Registration in India business grows in the foreseeable future and you want to create incentives for your non-shareholder employees who have contributed to the success of one’s company, then a good strategy is to grow their involvement by transferring shares in an additional to these individuals.
This likewise known being a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the company shareholdings without being required to terminate the legal status of they.
* Continuity
Another regarding the independent personality with the company is it may remain for the duration of registration, notwithstanding changes all of the ownership in the company’s stock 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 of a company’s existing.
You may one day decide at hand over the reins on the company to someone else, pertaining to instance one of the experienced managers or employee-shareholders. Even you may find a change of directors, the company will still exist as its registered auto.
It is worth it speaking having a legal adviser or accountant as to what is obtaining structure on your own and company. Also different countries may hold different legislation on this so check locally too.
It is possible to register a company online, , however, if this can be a daunting prospect for you, there are appointed registered agents, who will advise and manage your online company listing.
