Sole proprietorship| how to apply| Company registration?
Proprietorship company is the most common and simplest form of entity. A sole proprietorship is a type of business entity which is controlled and owned by one person. You don't have excess paperwork to start a sole proprietorship. But there are some important things you need to know before starting your journey in entrepreneur’s world. Sole proprietorship, according to the government of India is a “one-man organisation where a single individual owns, manages and controls the business.”
Proprietorship company is very easy to start and compliance requirements are very limited. There is no fees to be paid for starting a sole proprietorship company, and there is no government regulatory paperwork and compliance to be fulfilled. There are no minimum capital investment requirements, and proprietor has full control and ownership stake. A disadvantage of a sole proprietorship is that the owner of sole proprietorship is personally liable for all the business's accounts. In case the business runs into financial trouble, the owner will have to pay the business debts. with his or her own money.
Procedure of proprietorship company registration
- Step 1
Decide what type of certificate you are planning to register a sole proprietorship company in India.
- Step 2
Upload the documents required for online proprietorship registration
- Step 3
Documents which are required are PAN card of sole proprietor, Aadhar card of sole proprietor, Bank account details (Copy of canceled check or bank statement), Address proof of office
- Step 4
After submitting documents pay the required fees for the registration
- Step 5
After verifying all these documents you will get your certificate from the government department for the approval of your sole proprietorship company registration
Any sole proprietorship company is easy to incorporate as there is no mandatory requirement to register. The owner should have only GST registration
The cost of sole proprietorship is very low because the compliance requirements are also minimal
It is easy to shut down the proprietorship company because only sole person is in authority
Only one individual is required for sole proprietorship
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Documents required for proprietorship company registration
- PAN card of the sole proprietor
- Registration Proof of the business premise
- Identity proof of the proprietor
- Bank Account details
- GST registration number/li>
- Nature of the business
What is a Sole Proprietorship?
A Sole proprietorship is a type of entity where there is single owner and all the decisions of the business are taken by him/her. It can be registered or unregistered.
Why Sole proprietorship?
The Sole proprietorship is a preferred form for those who want to have a full control of business and are their own boss. It is a preferred form for those who do not want to work under others.
Is it necessary to get the proprietorship registered?
No, it is not necessary to register the sole proprietorship.
What is liability of the Sole Proprietorship?
The Sole proprietorship has unlimited liability i.e. the personal assets of the sole proprietor can be attached to pay off the liabilities of the sole proprietorship.
What are the requirements to start the Sole Proprietorship?
In order to start the Sole Proprietorship, one needs to get the necessary license for the type of business to be started as a sole proprietorship.
What is the annual compliance requirement for the Sole proprietorship?
The Sole Proprietorship does not need to have any annual compliance instead annual compliance is for sole proprietor where it has to submit his/her Income Tax return.
Can You register a brand name under the Sole Proprietorship?
Yes! A brand name can be registered under the sole proprietorship.
What are the disadvantages of Sole Proprietorship?
The Sole Proprietorship has many disadvantages such as, unlimited liability, lack of resources, lack of credibility, cannot raise credit easily.
What are the advantages of Sole Proprietorship?
The Sole Proprietorship has many advantages such as, sole control over management, easy setup, low cost, and low taxation.
Can a Sole Proprietorship be converted into any other entity?
Yes! A sole proprietorship can be converted into any other entity by following the required procedure.