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How is it possible For One Person to create a Company?

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

While you may consider setting up a single proprietorship, the Corporations Act of 2001 does allow you to put in a company with only one person to get and run whatever. If this is the way you need to go, then effortless to do is indicate your choice in the ASIC registration application as "a proprietary company with limited liability".

You in order to both truly the only shareholder along with the sole director of enterprise. The company is legally regarded for a sole shareholder/director proprietary venture. You may wonder why anyone would insurance company register as the sole proprietary company regarding as in one proprietorship.

Well, you will find real reasons to being registered as a sole shareholder/director company. Read on for some potential reasons individuals select a company regarding your sole proprietorship:

* Legal personality of company.

Once a business is registered with the ASIC along with an ACN been recently is issued, the company becomes an authorized entity using a personality is actually why independent and separate from the shareholder. The aspect has important facts legally: A strong can start contracts in the own name and this may also sue, and be sued.

If a business enterprise is in debt, the bucks owed doesn't automatically get to be the debt of this shareholder. For a result, a civil lawsuit for the collection of a sum of money against the corporation is not inevitably a legal action against the shareholder.

This is they the liability of a shareholder has limitations to the cost of his shareholdings unless he previously signed a personal guarantee and only the one pursuing legal action. This built-in limitation isn't available in single proprietorships or for sole traders.

So when you find yourself conducting business by yourself, and you should limit little liability, the actual sole shareholder proprietary company is for a person will.

* Flexibility in ownership

If your online business grows in the future and will need create incentives for your non-shareholder employees who have contributed to your success of one's company, started to be good strategy is to strengthen their involvement by transferring shares in vehicle to all of them.

This can also known to be a stock option. Because of the company's structure, you can accommodate non share-holder employees into the shareholdings getting required to terminate the legal status of enterprise.

* Continuity

Another advantage of the independent personality within the company is it may remain for the duration of registration, notwithstanding changes all of the ownership belonging to the company's shares. The death or retirement to a shareholder assaulted sale, transfer or assignment of the rights in order to company's shares will not mean the termination associated with company's existence.

You may one day decide to give over the reins for this company to a person else, since 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 car.

It is worthwhile speaking along with a legal adviser or accountant as to what is the best structure independently and firm. Also different countries may have different legislation on this so check locally as well.

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