Are you considering going into business on your own without any young partners? There are two business structures which really can be appropriate for a little 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 company with only one person to have and run it all. 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 the only shareholder and the sole director of firm. The company is legally regarded as being a sole shareholder/director proprietary small business. You may wonder why anyone would decide either to register for a sole proprietary company as compared to as one proprietorship.

Well, there are real benefits to being registered as a sole shareholder/director company. Every potential reasons individuals choose a company of a sole proprietorship:

* Legal personality of company.

Once a business or company is registered with the ASIC and an ACN may be is issued, the company becomes a legal entity having a personality which isn’t independent and separate by reviewing the shareholder. The aspect has important facts legally: A professional can decide on contracts in its own name and this may sue, and sued.

If a business enterprise is in debt, the owed doesn’t automatically become the debt on the shareholder. Being a result, a civil lawsuit for the gathering of an amount of cash against the company is never a court action against the shareholder.

This is that the liability of a shareholder has limitations to the price of his shareholdings unless he previously signed a personal guarantee in support of the one pursuing legal action. This built-in limitation is not available in single proprietorships or for sole option traders.

So in case you’re conducting business by yourself, and will need limit little liability, after that your sole shareholder proprietary clients are for families.

* 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 the success of the company, then a good approach is to increase their involvement by transferring shares in vehicle to them.

This can also known as being a stock route. 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 organization.

* Continuity

Another regarding the independent personality among the company is it may remain for the duration of the company’s registration, notwithstanding changes regarding ownership belonging to the company’s features. The death or retirement for a shareholder or the sale, transfer or assignment of the rights to a company’s shares will not mean the termination associated with company’s existence.

You may one day decide to give over the reins belonging to the company to someone else, such as one of your 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 by using a legal adviser or accountant as to what is obtaining structure independently and your company. Also different countries may have different legislation on this so check locally as well.

It may happen to register a OPC Company Registration in India Online online, , however, if this is a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your company application.