If you are thinking of register a proprietorship then we can help you and it is a great idea for any start-up to start their new business with a proprietorship.
A proprietorship is a form of business professional association run by a person.In this, the person himself invests the necessary capital business, he manages and operate it himself. It is the most common form of business in India, which is used by small businesses working in unorganized sectors.In proprietorship, there is no legal difference between the owner and the business entities. In this, a person can choose any business as per his wish and can change it without any difficulty when necessary.Proprietorship provides both economic and social benefits. Because of which this business has become very popular in India
In Sole proprietorship, the owner is the officer himself. All the loans and profits of the business are owned by the owner.Sole trading has only one person’s capital, no other person’s participation, but it can get necessary finance in the form of loan from other persons.There is no restriction on obtaining loan from other persons.Sole entrepreneur does not need any external motivation to work, he is always motivate by this that whatever benefit will be there, he will go in his pocket. Inspired by this idea, he keeps busy in business activities
This concept of professional association indicates the ownership of the merchant. Solitary businessman can seek help from other people in his business, appoint an employee,But the final responsibility lies with the sole proprietors.It is very easy to establish a sole proprietorship because in it is not necessary to fulfill any kind of legal formalities. But if a business has government restrictions then license may have to be taken. The sole proprietorship is a small and limited area with less number of customers.Hence a sole proprietor has close contact with their customers.The advantage of this is that the problems of customers can be overcome with vigor.A sole proprietorship does not only serve its owner, but it also provide support the whole society in terms of social and economic benefits.In a developing country like India where there is more economic inequality and regional imbalance, the importance of such a business becomes even more.
Document required form Proprietorship Firm Registration
- Aadhar card or any identity proof
- PAN card
- Business account
- Rental agreement
- Electricity bill
Advantages of proprietorship firm
1. Easy to Formation
Sole ownership is easy to start .Unlike other business structures, the formation of sole proprietorship requires less paperwork and less time.
2. No Capital Required
Sole proprietorship does not require minimum capital because the owner himself invests his own capital according to his wishes.
3. No Registration Required
Sole proprietorship is not required to be legally registered. But if on any business has a government restriction, then a license has to be obtained.
4. Tax benefit
There are many tax advantages for sole proprietorship. There is also some personal exemption under Section 80 (C) of the income Tax Act 1961.The sole proprietorship has to comply with tax obligations on the use of personal income tax rates rather than corporate which makes it easier and cheaper for you to follow your tax liability.
5. Direct Control
The sole proprietor has the right to take all decisions. The owner makes all the business decisions himself, instead of sharing the power with a partner or corporate board.This gives freedom to the owners towards their desire to trade.
Common Registration Required for Proprietorship
Sole Proprietor can apply for TAN if he wishes. TAN stands for Tax deduction and collection account number. It is a ten alphanumeric number that’s allotted to those who are supposed to deduct tax at source.
MSME Registration is necessary for small entrepreneurs who are running their businesses under the MSME.
GST registration is mandatory for those proprietors whose annual turnover is 40 lakh or more.Small proprietors can their GST registration as per own wish.
Import Export Code
Import export is necessary for those businessmen who import or export from other countries.
Import export code can be obtained by DGFT in the name of trade.
FSSAI Registration is for the sale of food ingredient or handling food products.If proprietorship includes the sale of food productsif proprietorship includes the sale of food products then it should be registered from the Food Safety and Standards Authority of India in the name of FSSAI Registration Proprietor.
Features of Proprietorship
1. Lake for Proprietorship
Proprietorship does not require any legal process. It does not require registration. Overall, it allows for ease of doing business with minimum increases.
2. NO Separate Identity
No legal identification is provide in a proprietorship. The owner is responsible for all activities and transaction of the business. Responsibility lies of the owners.
3. One Person Owned
In proprietorship, there is only one owner and he manage and operates the business and he is also the owner of all profits and losses.
4. Limited sources
Sole ownership requires fewer sources because it has a limited area.
A sole proprietorship is entirely dependent on its owner. The death, retirement, bankruptcy. Insanity, imprisonment etc. will have an effect on the sole proprietorship. In most of such cases, the proprietorship will cease to exist and the business will come to an end.
In sole trader ship, the capital is employed by the owner himself from him personal resources. He may also borrow money from his friends and relatives if he cannot depend solely on his personal resources.
7. Profits and Losses.
The surplus arising in the business of the sole trader entirely belongs to him and similarly all the business losses and risk are to be borne by him alone.
Dial on financial services help you to register your proprietorship
Dial on financial services provides you with the best proprietorship firm registration. We helps in preparing all the documents of proprietorship registrations and in the firm formation. We are provides all the facilities from firm registration to firm management. We will register your proprietorship firm with the firm process.
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