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SETTING UP PROPRIETORSHIP BUSINESS


A Sole Proprietorship is a most common business structure in India. When anyone think to start a new business, he has most common choice to choose this type of organisation. This is an unregistered form of organisation which is owned, controlled and managed by an individual person. So, we can say that person is “All in All” in his business.

Proprietorship is very easy to start, have low compliance formalities in their day-to-day operations and less costing. It is suit for unorganised, small entity which are remain small and limited period /liability in existence.

REGISTRATION PROCESS OF SOLE PROPRIETORSHIP BUSINESS

There is no any registration formalities and regulations provided by any Indian laws. Simply, business owner want to run their business with a suitable business title and open Current Bank Account to deal daily business transactions. So, a Sole Proprietorship requires a legal entity proof with Business name to open Current account with bank. This entity proof can be Udyog Aadhar and GSTIN etc.

DOCUMENTS REQUIRED FOR PROPRIETORSHIP REGISTRATION

  • PAN Copy of Proprietor.
  • Address Proof of Proprietor- Aadhar Card/ Voter ID Card/ DL/ Electricity Bill etc.
  • Address Proof of Business Place.
  • Passport size latest Photograph.

    • ADVANTAGES OF PROPRIETORSHIP BUSINESS

  • Easy to start because less legal formalities are required to fulfill.
  • Free choice to choose any business title.
  • Less Income tax liability.
  • Inexpensive Management and better control.
  • Sole beneficiary of profits.

    • DISADVANTAGES OF PROPRIETORSHIP BUSINESS

  • Limitations of capital and management skill of a single person.
  • Unlimited liability of business.
  • Lack of continuity after owner.




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