Proprietorship



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Proprietorship

Proprietorship Concern is one of the most common and oldest forms of businesses in India. It is a one man organization where a single individual owns, manages and controls business. The most important feature of proprietorship concern is that it is very easy to start. There is no mechanism provided by the Government of India for Registration of a Proprietorship Concern. The Sole Proprietorship firm enjoys some benefits like no registration or agreement is required to start and easy to close. On the other hand sole proprietorship does not provide some other benefits such as independent existence, transferability, separate legal entity, limited liability etc.

Proprietorship

There are many reasons why a person would choose to start his business using a sole proprietorship concern. Advantages of a Proprietorship Concern include :

  • Easy Formation : Starting a sole proprietorship concern is much easier and less complicated than starting any other type of business, and also much cheaper. Proprietorship can be named after the name of owner, or a fictitious name can be used to enhance the business marketing or any name of owner’s choice.

  • Tax Benefits : The owner of a sole proprietorship does not have to file a separate business tax return. Instead, the business information and figures will be listed in individual return. The business will be taxed at the rates of personal income tax and not at corporate tax rates. The owner will get benefit of all the deductions which are allowed to an individual by the income tax.

  • Decision Making : Control over business decisions remains in the hands of the owner.  

    Disadvantages of a Sole Proprietorship Concern

    Starting a sole proprietorship concern may be easy and hassle free but there are some disadvantages to start a business in the name of sole proprietorship concern.

  • Unlimited Liability : The owner and the business are not treated separately in a sole proprietorship concern. The owner is made responsible for all the debts, losses or violations coming from business. For example if the business must pay any debts or losses, it will be satisfied from the owner’s personal funds.

  • Lack of continuity : The business does not continue if the owner becomes incapable of running the business. Sole proprietorship concern do not have perpetual succession.

  • Difficulty in raising capital : Since the initial funds are generally introduced by the owner, sometimes it can be difficult to get capital. It’s not possible for a sole proprietorship concern to raise VC fund.

Proprietorship

BASIC
4499
  • Shop and Establishment

  • License for Proprietorship

  • Includes Min. Govt. Fees

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STANDARD
6499
  • Shop and Establishment

  • License for Proprietorship

  • GST Registration

  • Free MSME Registration with this package

  • Includes Min. Govt. Fees"

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PREMIUM
10499
  • Shop and Establishment

  • License for Proprietorship

  • GST Registration

  • GST complilance for First 3 months

  • Free MSME Registration with this package

  • Includes Min. Govt. Fees

  • --

Process

01

Consultation

A Business Consultant from MyEfilings will consult you on Proprietorship concern and answer all your questions regarding it.

02

Obtain PAN

We will apply for the Permanent Account Number of Proprietor. There is no separate PAN of Proprietorship. It's same as PAN of Proprietor.

03

Udyog Adhar

Udyog Adhar is registration for Micro,Small and Medium Enterprise and this certificate helps you to open Bank Account of Proprietorship.

04

GST Registration

Depending on the type of business and nature of activity we will consult whether you need GST Registration for your Proprietorship.




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