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Proprietorship

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Proprietorship

What is a Sole Proprietorship Firm?

A sole proprietorship is a type of unregistered business entity that the owned, controlled  and managed by the one person. Sole proprietorship’s are one of most common forms of the business in India, used by most micro business and small businesses operating in unorganised sectors. Proprietorships are very easy to the start and have been very minimal regulatory compliance requirement for the started and operating. However, after startup phase, proprietorship’s do not offer of the promoter host of the benefits such as the limited liability proprietorship LLP, corporate status,independent existence, separate legal entity, transferability, perpetual existence – which is desirable features for the any business. so, proprietorship registration is a suited only for the unorganised, small businesses that will be remain small and/or have a limited period of the existence.

There is no mechanism provided by Government of India for registration of the Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that the business is a required to have a per rules and regulations. For instance, VAT or Good Service Tax or GST Registration can be obtained in name of Proprietor to the establish that Proprietor is a operating business as a sole proprietorship. Thus, all the registrations for the proprietorship would be in name of the Proprietor, making of the Proprietor personally liable for all liabilities of the Proprietorship.

Documents required for registration of Proprietorship Firm

  • PAN Card
  • Aadhar Card
  • Soft copy of Photograph
  • List of Sale and Purchase Items
  • Cancel Cheque.
  • Rent Agreement in case of rented property or NOC if owned by relativ
  • Electricity bill/Municipal Tax/House Tax Bill/Water tax

PRICE : Rs 1998

time of process : 3 to 4 working days

Pricing :-

Basic Proprietorship :-
Rs. 1499/-INR
Package Include :- Sole Proprietorship Firm Registration under MSME act 2006 Chartered Accountant Certificate to open a business bank account
Premium Proprietorship :-
Rs 2499/-INR
Package Include :- Firm Registration under GST act and Free Premium Legal Agreement and invoice template
 

 Reasons to Register a Proprietorship Firm :

Business Name

Since the name of the proprietorship is not registered, The proprietorship can be choose to have any name – as long as it does not infringe on the registered trademark. However, since name is not registered, any other person can be also use same business name unless trademark registration is obtained.

Single Promoter

Proprietorship is a only type of business entity that the registered and operated by the one person. To register a one person company, a nominee Director is a required and for the all other types of entities like company or Limited Liability Company or partnership firm, two or more promoters are required.

Easy to Start

Proprietorship needs the minimal registration. Therefore, it is one of easiest form of the business entity to the start with minimal formalities. However, after starting up a Proprietorship, it is relatively harder to the open a bank account or obtain a payment gateway in name of the business – since more registrations like VAT  or GST Registration may be required.

Lower taxes

Proprietorship with the less than Rupess. 3 lakhs of income is not required to the pay any income tax, as proprietorship’s are taxed as individual owing of the business. However, unlike a company or Limited Liability Company or LLP, a proprietorship cannot enjoy some of the tax deductions, which could potentially increase to the tax liability.

Easy to Close

The Proprietor and the proprietorship are one and same for the all legal purposes. Hence, there is no formality for the winding up or closing a proprietorship. In most cases, to the close a proprietorship, only tax registrations obtained in the name of the proprietor must be cancelled.

Frequently asked questions :-

Sole means single and proprietorship means Owner A sole proprietorship is the oldest and the most common form of the business. It is a one-man organization where a single individual manages, owns, and controls of the business. A Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of business. the individual proprietorship is form of the business organization at head of which stands an individual as one who is the responsible who directs its is operations & who alone runs the risk of failure. . You can select any registration from the below:
  • Shop & Establishment Registration under the laws the respective state
  •   Registering as the SME
  •  GST Registration
Sole Proprietorship Firm  examples include the small businesses, such as a single person art studio, a local grocery, or an IT consultation service. The moment you start the offering goods and services to the others, you form a Sole Proprietorship Firm. It is that simple.
Despite fact that the sole proprietorship is not technically a business entity, owners can be hire employees. There is no limit on the number of the employees that a sole proprietor can be employ.
Income & losses are taxed on individual's personal (ITR) income tax return. The sole proprietorship is the simplest business form under which one can be operate of the business. The sole proprietorship is not legal entity. It is simply refers to the person who owns tto he business and is personally responsible for its debts.
The sole proprietorship is not legal entity. It is simply refers to the person who owns the business and is personally responsible for the debits. A sole proprietorship can be operate under of the name its owner or it can do business under a fictitious name. What is the lifespan of sole proprietorship? lifetime
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