A Proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Proprietorships are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganized sectors.
Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating.
However, after the startup phase, Proprietorship’s do not offer the promoter a host of benefits such as limited liability Proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence – which are desirable features for any business.
Therefore, Proprietorship firm registration is suited only for unorganized, small businesses that will remain small and/or have a limited period of existence.
There is no mechanism provided by the Government of India for the registration of a Sole Proprietorship. Therefore, the existence of a Proprietorship firm must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations.
For instance, VAT or Service Tax or GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a 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.
Benefits of Proprietorship registration
- Proprietorships have functional and tax advantages compared to other business entities.
- One of the functional advantages of Proprietorships is that they are easier to set up than other business entities. A person becomes a proprietor simply by running a business.
- Another functional advantage of a Proprietorship is that the owner maintains 100% control and ownership of the business. By definition, a Proprietorship can have only one owner, and that owner is entitled to the profits and control of the business.
- Proprietorships also have tax advantages over other business entities.
- Proprietorship registration helps a business person to avoid the owner from incurring double taxation.
For availing Sole proprietorship registration you need to follow the steps mentioned below. Let us understand how to register a proprietorship firm.
- Fill up a simple form on Online Sole proprietorship registration website providing basic information about proprietor and business.
- Provide relevant documents online and we will file them with relevant authorities.
- We will get your proprietorship registered.
Proprietorship registration can be done easily by visiting Online Sole proprietorship registration website. Along with that, you can manage your accounts and banking related in queries with the help of EZOTO Software – By Downloading this Billing Software you would be able to manage invoice, accounting, credit, inventory, customers, etc and fulfill all your accounting needs