Are you considering going into business on your own without any collaborators? There are two business structures which really can be appropriate for a small outfit like yours: a single proprietorship (sole trader) or a registered company.
While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to setup a OPC Company Registration in India Online with only 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 in order to be both the sole shareholder and the sole director of organization. The company is legally regarded as the sole shareholder/director proprietary company. You may wonder why anyone would decide either to register for a sole proprietary company associated with as a single proprietorship.
Well, that produce real reasons to 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 company is registered with the ASIC along with an ACN recently been is issued, the company becomes the best entity along with a personality that is independent and separate from the shareholder. The aspect has important facts legally: A business can creep into contracts in its own name and this may also sue, and sued.
If a company is in debt, the money owed does not automatically become the debt of the shareholder. As being a result, a civil lawsuit for the range of a sum of money against the organization is probably not a law suit against the shareholder.
This is that the liability of a shareholder is limited to the price of his shareholdings unless he previously signed a personal guarantee in favor of the one pursuing a lawsuit. 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 desire to limit organization liability, after that your sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your online business grows later on and you would like to create incentives for your non-shareholder employees who have contributed for the success of the company, as well as good way is to grow their involvement by transferring shares in an additional to them.
This one more known as being a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings without being required to terminate the legal status of the company.
Another regarding the independent personality of the company is that it may continue to exist for the duration from the registration, notwithstanding changes in the ownership of your company’s shares. The death or retirement of a shareholder or even the sale, transfer or assignment of the rights to a company’s shares will not mean the termination about a company’s existence.
You may one day decide to give over the reins of the company to a person else, such as one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain in existence as its registered private.
It is worth it speaking using a legal adviser or accountant as coming from what is best structure independently and company. Also different countries will often have different legislation on this so check locally as well.
It is possible 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 company number.