To Start a Proprietorship Business No registration is required as such, The registrations like Shops & Establishment, Vat (Sales Tax) or Service Tax Registration are required as these are necessitated due to the activity which the proprietorship intends to do and is common to all forms of business, In Other words these registrations are needed by any form of business so it is also needed for proprietorship. However to open a bank account in the name of business two entity proof is insisted by the Banker, Our Specialists shall be assisting you with these requirements based on the geographical location of the business. A proprietor secures the capital, establishes and operates the business, assumes all the risks, hence accepts all the profits and losses, and pays all the taxes. There is no separate pan card needed in the name of the business, the pan card of proprietor is also considered as the pan card of the firm. The return of Income Tax and payment of taxes is also done by the proprietor only.
For Budding Startups with projected Turnover Less Than 20 Lac in a Year.
For Service Providers which is likely to have a turnover more than 20 lac in a year
Suitable for business having turnover more than 20 lac & seeking brand protection
Advantage of Proprietorship Formation
Easy to Start
The proprietorship business can be started at will and it does not require any formal registration as such. However there are certain registrations which are common to all other forms of business which also applies on the proprietorship like Shops & Establishment Registration, Professional Tax Registration, Vat or Service Tax etc. The cost of setting up a proprietorship is comparatively low.
The proprietorship business should maintain proper books of accounts and at the end of the financial year prepare a balance sheet and profit and loss account. The taxable income of the business shall be added to the Income of proprietor and he shall discharge all tax liabilities of the proprietorship business and file information in his Income Tax Return before 31st July.
Capacity to Sue and to be Sued
A Proprietorship can be started by its owner with a separate name which over a period of time acquired goodwill and value. While deciding a name the care should be exercised to check if it conflict with other trademark. Setindiabiz specialists shall be providing you with free consultancy on Name Check and how to protect Business Name, its Logo, Punch line etc.
As proprietor is the person who controls the business without any interference and there is no separation of ownership and control. The decision making in case of proprietorship is relatively a fast process in comparison to that of private Limited company, Limited Liability partnership (LLP), Partnership where the management and control rests with separate body of individuals.
With the ease of establish a proprietorship which can be created at the will of its owner the paperwork and other formalities are less in comparison to corporations. However, the sole proprietors will still need to comply with licensing and other registration requirements in the states in which they are doing business, as well as local regulations and municipal level regulations.
Time is on your side
As stated earlier the proprietor is every thing in the proprietorship business, he do not have to consult or report to any other person. The proprietor has all the time on his part, which he can utilize as per his wish. At the same time the business continuance also depends on the comfort level of the proprietor. A sole proprietorship business can be passed down to the owner’s heirs.