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Proprietership

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Proprietership

Proprietership

Proprietorship is an alias for the Proprietor to do business. Proprietorship are ideal for very small businesses in the unorganized sector. MAANOF offers proprietorship registration from Rs.999/-

Proprietorship Registration

A sole proprietorship is a type of business entity that is owned, managed and controlled by an individual person. Sole proprietorship’s are one of the most common forms of business in India, used mostly by micro and small businesses and generally operating in the unorganized sectors. Businesses in the form of Proprietorship are easy to start and it has got either no or minimal compliance. However, after the start-up phase, proprietorship’s form of business do not offer the owner to avail a host of benefits what other form of business entity offer such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability of shares, perpetual existence. Therefore, proprietorship registration is suited only for unorganised, small businesses that will remain small and/or have a limited period of existence.

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There is no set of rules or legal procedures are provided by the Government of India for the registration of a business in the form of Sole Proprietorship. Therefore, the proprietorship business comes into existence either through tax registrations and other requirements such as opening a bank account in the name of business or obtaining a license from either the labour Department, shop establishment, MSME Certification, trademark, Fssai license etc. For example GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship business.

The average time taken to complete a proprietorship registration is 3 – 7 working days, subject to government processing time and client document submission. Get a free consultation for proprietorship registration and business setup in India by scheduling an appointment with an MAANOF Advisor.

To Start

Proprietorship needs minimal registration. Therefore, it is one of the easiest form of business entity to start with minimal formalities. However, after starting up a Proprietorship, it is relatively harder to open a bank account or obtain a payment gateway in the name of the business – since more registrations like GST Registration may be required.

Business Name

Since the name of a proprietorship is noted, a proprietorship can choose to have any name – as long as it does not infringe owned trademark. However, since the name is noted, any other person can also use the same business name unless trademark registration is obtained.

Single Promoter

Proprietorship is the only type of business entity which can be operated by one person, as in the case of one Person Company, a nominee Director is required and for all other types of entities like company or LLP or partnership firm, two or more promoters are required.

Lower Taxes

Proprietorship with less than Rs. 3 lakhs of income is not required to pay any income tax, as proprietorship’s business are taxed as individual, and it is not treated as business entity distinct from its owner, unlike a company or LLP, which at taxed at flat rate without any limit as to non taxable income.

To Close

The Proprietor and the proprietorship are one and the same for all legal purposes. Hence, there is no formality for winding up or closing a proprietorship. In most cases, to close a proprietorship, only the tax registrations obtained in the name of the proprietor must be cancelled.

DOCUMENT REQUIRED FOR FORMING A SOLE PROPRIETOR SHIP

Address & Identity Proof of Individual.

For the purpose of registration on Indian resident Pan Is Mandatory, in the case of foreign National either apostile or notorised copy of passport is required. Other required documents can be Aadhar, Driving License, Passport, Voter Identity Card.

Address & Identity Proof of the Proprietor ship Firm

Registered Address proof in the form of Electricity Bill or Rent Agreement along with electricity bill if Rented Premises.