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Nov 30

Is it feasible For One Person to form a Company?

Are you considering going into business on your own without any employees? There are two business structures that may be appropriate for a little outfit like yours: a single proprietorship (sole trader) look registered company.

While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to get going a company with just one person to get the and run everything. If this is the way you want to go, then from your 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 main shareholder as well as the sole director of firm. The company is legally regarded as the sole shareholder/director proprietary contractor. You may wonder why anyone would choose to register to be a sole proprietary company rather than as a single proprietorship.

Well, there are real benefits to being registered as a sole shareholder/director company. Below are some potential reasons individuals pick a company of every sole proprietorship:

* Legal personality of company.

Once a business or company is registered with the ASIC with an ACN may be is issued, the company becomes the best entity along with a personality is actually why independent and separate from its shareholder. The aspect has important facts legally: A strong can enter into contracts in its own name and it can also sue, and be sued.

If a firm’s is in debt, the bucks owed doesn’t automatically become the debt on the shareholder. As being a result, a civil lawsuit for the range of an amount of cash against the machines is not necessarily a law suit against the shareholder.

This is that the liability of a shareholder is limited 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 is not available in single proprietorships or for sole sellers.

So if you are conducting business by yourself, and you wish to limit your business liability, your sole shareholder proprietary company is for you.

* Flexibility in ownership

If little grows in the foreseeable future and require create incentives for your non-shareholder employees who have contributed to your success of your company, then a good way is to grow their involvement by transferring shares in the organization to people.

This furthermore known to be a stock route. Because of the company’s structure, you can accommodate non share-holder employees into the corporate shareholdings getting required to terminate the legal status of the organization.

* Continuity

Another regarding the independent personality within the company is it may continue to exist for the duration of registration, notwithstanding changes in the ownership of your company’s features. The death or retirement with regards to a shareholder or the sale, transfer or assignment of the rights in order to company’s shares will not mean the termination with a company’s existing.

You may one day decide to give over the reins for this company to a person else, because one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain as its registered auto.

It is worth it speaking along with a legal adviser or accountant as to what is obtaining structure off the web and your organization. Also different countries perhaps has different legislation on this so check locally as well.

It can be to Register One Person Company in India Online a company online, , however, if this is a daunting prospect for you, there are appointed registered agents, who can advise and manage your company listing.