Proprietorship Firm is common & most cost effective procedure to start business in India. A sole proprietor become single owner of business and it is easy to start and close. In this business legally has no separate existence from its owner. Income and losses are taxed on the individual’s personal income tax return.
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss, etc. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost.
The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor’s.
A sole proprietor may use a trade name or business name other than his, her, or its legal name. They may have to legally trademark their business name if it differs from their own legal name, the process varying depending upon country of residence.
Proprietorship in India is a popular business form due to its simplicity, ease of setup, and nominal cost.
Complete Control of Proprietor on business.
Tax Advantage- Slab wise tax rates in there instead of flat tax as in other legal structure.
Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. ; i.e. unlimited liability is there.
Fund Raising is difficult activity in proprietorship setup.
Neither shares can be transferred nor partner can be added.
For Opening a current bank account on the Firm Name or Business Name which is required , legal registration are required which can be GST, MSME registration, Shops Act etc. based on business.
ComplyPartner Team would understand business
Day 1-Client To Share Documents With ComplyPartner Team
Day 1- Apply for GST, MSME, Trademark and Shop Act License
Congratulations, now you can start your business
Day 7-GST Registration Done For The Business
Day 2- MSME License,Trademark and Shop Act License Done
PAN Card of Proprietor
Aadhar Card of Proprietor
Bank Statement of Proprietor
Address Proof of business
Utility Bills of address proof of business