Is it possible For One Person to form a Company?
Are you considering going into business on your own without any collaborators? There are two business structures which is appropriate for a good 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 pitch a company with only one person to enjoy and run everthing. If this is the way you wish to go, then in your situation to do is indicate your choice in the ASIC OPC Registration Online in India application as “a proprietary company with limited liability”.
You become both the only shareholder and the sole director of business. The company is legally regarded as the sole shareholder/director proprietary small business. You may wonder why anyone would insurance company register as the sole proprietary company regarding as one proprietorship.
Well, there are some real reasons to being registered as a sole shareholder/director company. Spots potential reasons individuals choose a company of a sole proprietorship:
* Legal personality of company.
Once a firm is registered with the ASIC in addition to an ACN has been is issued, the company becomes a lawful entity along with a personality that is independent and separate by reviewing the shareholder. The aspect has important facts legally: A business can enter into contracts in its own name and it will also sue, and be sued.
If a company is in debt, cash owed does not automatically end up being the debt of this shareholder. As a result, a civil lawsuit for the product range of an amount of cash against the organization is not ever a a lawsuit against the shareholder.
This is simply because the liability of a shareholder has limitations to the price 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 traders.
So if you are conducting business by yourself, and will need limit little liability, your sole shareholder proprietary clients are for most people.
* Flexibility in ownership
If your grows in the future and you want to create incentives for your non-shareholder employees who have contributed into the success of the company, then a good method to better their involvement by transferring shares in the organization to him.
This likewise known as a stock choosing. Because of the company’s structure, you can accommodate non share-holder employees into the shareholdings becoming required to terminate the legal status of enterprise.
Another associated with 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 features. The death or retirement in the place of shareholder maybe the sale, transfer or assignment of the rights to a company’s shares will not mean the termination of a company’s every day life.
You may one day decide handy over the reins of the company to someone else, regarding one of the experienced managers or employee-shareholders. Even dampness a change of directors, the company will remain in existence as its registered auto.
It is worth it speaking along with a legal adviser or accountant as to what is the best structure on your own and your company. Also different countries may have different legislation on this so check locally as well.
It can be to register a company online, , however, if this is really a daunting prospect for you, there are appointed registered agents, nobody can advise and manage your company number.