Are you considering going into business on your own without any employees? There are two business structures that is appropriate for a small 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 setup a company with only one person to have and run all the stuff. If this is the way you need to go, then from your to do is indicate your choice in the ASIC OPC Registration Online in India application as "a proprietary company with limited liability".
You seem both the only shareholder along with the sole director of organization. The company is legally regarded as a sole shareholder/director proprietary contractor. You may wonder why anyone would would prefer to register like a sole proprietary company regarding as in one proprietorship.
Well, that produce real advantages to being registered as a sole shareholder/director company. Spots potential reasons individuals select a company of a sole proprietorship:
* Legal personality of company.
Once a service provider is registered with the ASIC with an ACN may be is issued, the company becomes the best entity along with a personality is actually independent and separate by reviewing the shareholder. The aspect has important facts legally: A company can decide on contracts in its own name and this may also sue, and be sued.
If a consultant is in debt, the amount owed doesn't automatically end up being the debt on the shareholder. As a result, a civil lawsuit for the product range of a sum of money against group is not inevitably a law suit against the shareholder.
This is that the liability of a shareholder is proscribed to value of his shareholdings unless he previously signed a personal guarantee just the one pursuing law suit. This built-in limitation isn't available in single proprietorships or for sole option traders.
So when you find yourself conducting business by yourself, and require limit on the web liability, then the sole shareholder proprietary company is for then you.
* Flexibility in ownership
If your online business grows in the future and will need create incentives for your non-shareholder employees who have contributed for the success of one's company, then came good technique to better their involvement by transferring shares in a lot more claims to them.
This one more known to be a stock choosing. Because of the company's structure, you can accommodate non share-holder employees into the particular shareholdings without required to terminate the legal status of organization.
Another advantage of the independent personality of the company is that it may continue to exist for the duration from the registration, notwithstanding changes regarding ownership of the company's shares. The death or retirement to a shareholder maybe the sale, transfer or assignment of the rights in order to company's shares will not mean the termination associated with company's presence.
You may one day decide to give over the reins with the company to a person else, since one of the experienced managers or employee-shareholders. Even when there is a change of directors, the company will remain as its registered self.
It is worthwhile speaking by using a legal adviser or accountant as as to what is best structure off the web and your business. Also different countries perhaps has different legislation on this so check locally as well.
It is possible to register a company online, nonetheless this is a daunting prospect for you, there are appointed registered agents, who can advise and manage your own company application.