- Description
- Video
- Additional information
- INFORMATION
- OUR SERVICES
- ADVANTAGE
- DISADVANTAGE
- DOCUMENTS REQUIRED
- COMPARISON BETWEEN DIFFERENT BUSINESS ENTITIES
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INFORMATION
A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship is the most common type of business in India and it is used by most micro and small businesses operating in the unorganized sectors.
Proprietorship are simple to start and have minimal regulatory compliance requirements for operating. This entity is ideal for entrepreneurs who are getting into business for the first time and for small businesses with few clients.
OUR SERVICES
✔ Consultation With Advisor
✔ TAN Number Allotment
✔ MSME Registration
✔ GST Registration
ADVANTAGE
EASE OF SETUP
The entrepreneur can start operations and receive payments from clients as no registrations are required to start a proprietorship.
EASE OF COMPLIANCE
The other advantage of a Proprietorship is that it requires no additional compliance in most cases. The PAN of the proprietor and proprietorship are one and the same. Hence in most cases, only income tax return in Form ITR-3 must be filed every year and also GST Returns.
EASE OF DISSOLUTION
The proprietor does not have to particularly wind up the company incase he wants to cease operations. This saves a lot of time and effort.
MINIMUM INVESTMENT
DISADVANTAGE
NO LIABILITY PROTECTION
A sole proprietorship does not provide the proprietor with limited liability protection. So the proprietor would be held personally liable in case of any loss or liability.
TRANSFERABILITY
Any license or registration obtained in the name of the proprietorship cannot be transferred to any other person or entity.
LIFESPAN
The existence of the sole proprietorship is tied to the proprietor hence it would cease to exist with the proprietor.
FUND RAISING
A proprietorship cannot raise equity funds from angel investors, venture capital firms or PE funds. Banks also tend to restrictions on the amount of credit they can lend.
Due to the disadvantages mentioned above, this registration will be suitable only for small businesses and the unorganized sector with a limited period of existence.
DOCUMENTS REQUIRED
DOCUMENTS OF PROPRIETOR
- Colour Photo – Two
- Aadhar Card
- Pan card
- Cancelled Cheque
RESIDENT PROOF DOCUMENTS
- Voter ID card
- Driving License
- Passport
- Bank Statement
- Electricity Bil
DOCUMENTS OF OFFICE ADDRESS
- Electricity Bill
- Property tax receipt
- Sale Deed
- Rent Agreement(if rented)
- NOC From Owner
COMPARISON BETWEEN DIFFERENT BUSINESS ENTITIES
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