Proprietorship Firm

A sole Proprietorship is when an individual is the only owner of the business and has complete control over the way it is run. Starting small by sole propertiorship is a way to test your chosen market – many businesses are born this way.

What is Proprietorship?

Sole Proprietorship is a one-person business who possesses, manages, and controls the business. While merchandising tax and legal liabilities of the owner and the business are one and the same. The proprietorship is not taxed as a separate entity. The proprietor must remember that the earnings of the business are taxed at the individual level, which means no separate filing of income tax returns for their business. There is no vehicle for protecting the proprietor's income. In proprietorship, the individual's assets are covered as business holdings. Therefore, legal claimants can pursue the personal property of the proprietor and not simply the assets used in the business.


Advantages

  • Easy to start & flexible operation
  • Simple registration
  • Sole authority
  • Less compliance
  • Insolvent in nature

Disadvantages

  • Unlimited liability
  • Limited capital
  • Company name cannot be registered

Documents Required

  • Individual PAN & Aadhar Card
  • Company Name

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