A sole proprietorship is a popular business form owned by one person who himself is responsible for its debt. Sole proprietorship is one of the most common forms of business in India due to its simplicity, ease of setup & nominal cost. It is also known as Individual Entrepreneurship or sole trader. Finances like [loans, debts, profits] are all in control of the owner. Local grocery, IT consultation services, doctor, chemist all these are the examples of sole proprietorship.
The entrepreneur owns all the assets of business and sole proprietor is to obtain few registrations to make his business function smoothly. Registering as SME, Shop act License, VAT and GST Registration can be obtained in the name of the Proprietor. Thus, all the registration related to proprietorship would be in the name of the Proprietor, making it personally liable for all the liabilities of the Proprietorship. Supply of goods and services to others is a sole proprietorship. This type of business is quite common in India. It does not include any separate legal entity.
However, after the startup stage, the proprietorship's do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence which are mandatory features for all type of business. Therefore, proprietorship registration is highly suited for unorganized and small businesses that will remain small and have a limited period of existence.
BusinessCrow is the leader in business registration services in India, offering a wide variety of company registration like privately limited company registration, One Person Company registration, Company Registration, Section 8 Company Registration, Producer Company Registration, and Indian Subsidiary Registration. For completing a proprietorship registration the time commence will be 3-5 days, according to government processing time and client document submission.
Why do we need to register proprietorship?
Easy to Form
Sole proprietorship is the simplest form of business, as it does not require any specific registration . Moreover requires less paperwork. If necessary one can use his identity proof to obtain trademark for his/her business uniqueness.
Name of entity
Since the name of the business is not registered, any other person can use the similar name. Therefore, for the uniqueness, proprietorship can register for the business trademark.
Sole control over decision-making
In a proprietorship, the owner makes all the decisions regarding his business and they do not require others approval while in another type of business like LLP, decisions is taken by the board of directors.
There are no specific rules and regulation for the dissolution of business in proprietorship but registered name of the proprietorship must be cancelled.
If it comes under the block of non-taxable income then the payment of income tax is not required. Some tax deductions benefits are solely enjoyed by LLP.
1. Easy to Form
The sole proprietorship is the simplest form of business, as it does not require any particular registration. If necessary, one can use his identity proof to get a trademark for business uniqueness.
2. Sole Kings of Profits:
In One-Person Company, the owner himself becomes the king of all the profit whereas, in LLP, profits are shared among two or more persons.
3. Sole Control over Decisions:
All decisions are taken by the proprietorship without any interference. They do not need to depend on others. All adjustments regarding hiring employees and determining their salaries are done by the proprietorship.
4. Affordable Organization:
There are no government fees or tax to pay whereas in LLP or other forms of business organization requires the filing of some state government forms and filing fees. It often has a lower startup cost than another form of business. Therefore, it is easy to form.
5. TAX Benefits:
Proprietorship enjoys many tax benefits like a reduction in health insurance, self-employment taxes. The only form required to file is the schedule with IRS for tax returns.
Identity and Address Proof
Identity and address proof of the proprietorship will be required. In case of Indian nationals, PAN is mandatory. For foreign nationals, submission of notarized copy of passport is mandatory. Valid residence proof documents like bank statement or electricity bill( less than 2 months old) or Aadhar card of individual.
Registered Office Proof
Registered office of all proprietors must be in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. In case of rented office, utility bill, rental agreement or sale deed and a letter from the property owner with his/her consent to use the office, as a registered office of a proprietor is required.
Simple & Transparent Pricing
Rs. 1999.00All Inclusive
Rs. 4999.00All Inclusive
Rs. 9999.00All Inclusive
How BusinessCrow help with proprietorship registration
BusinessCrow can help you to register a proprietorship within 3-5 days, as subject to government and client processing time.
Proprietorships do not have a specific process for incorporation. Hence, BusinessCrow will advise you the best way for establishing the identity of the Proprietorship firm and in opening of a bank account depending upon the cases.
Proprietorship identity can be established through TAN or VAT registration or Service Tax registration of GST registration in the name of the proprietor. Hence, the relevant tax registration is obtained for the business.
Udyog Aadhaar is a registration for all type of business like micro, small and medium sized businesses. Hence, for opening of bank account, Udyog Aadhaar registration along with a tax registration are required.
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