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Empower your entrepreneurship journey with hassle-free sole proprietorship registration.
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A Sole proprietorship is an enterprise owned exclusively by one natural person and in which there is no legal distinction between the owner and the business entity. It is an unincorporated business.
Under the Shop and Establishment Act, business owners possessing shops and establishment can register their sole proprietary concern.
No minimum capital requirements, Obtain a registration certificate under the Shop and Establishment Act. In case the proprietor is selling goods then a GST certificate is required.
A Sole proprietorship is an enterprise owned exclusively by one natural person and in which there is no legal distinction between the owner and the business entity.
Under the Shop and Establishment Act, business owners possessing shops and establishment can register their sole proprietary concern.
No minimum capital requirements, Obtain a registration certificate under the Shop and Establishment Act.
In a sole proprietorship, the proprietor has all the rights to decide what to do and how to operate. A proprietor neither needs to report someone nor take orders from anyone else. There is no interference from a third party. Unlike a corporate firm, there are minimal compliances or disclosure requirements during the whole financial year. Hence, Government interference is also very less.
It is relatively easy to establish and register the sole proprietorship business. There is no specific process to be followed to setup this business. Also the cost of sole proprietorship registration is very less compared to any other business structure. The business runs on the identity of the proprietor himself. He can run any legal business in his own name or with a different legal name as brand.
The proprietor is only owner of the business and therefore he owns the whole share of the business profit. Also, the business assets are treated as assets of the proprietor and vice-versa. He can decide when to withdraw profit or to reserve.
Proprietorship business is not treated separately in for income tax purpose. The tax slab as specified for an individual’s income is only applicable to the income of the business. The rates of tax are lower compared to other business structure like company and partnership. The benefit of deductions is an added advantage with combined ITR for individual and the business.
It is important to submit the necessary documents, get them reviewed and consult managers who carry out the business registration process.
A Sole Proprietorship Firm can be started with any amount of capital. Introduce a sum large enough to start the business. The owner can change capital at any moment because there are no restrictions on the amount that can be infused or withheld. The single decision maker in introducing cash into a business is the proprietor, who is also the company's owner.
Even when the sole proprietorship firm is registered, there is no distinct identity for the individual or their business. As a result, the PAN cards for the company and the proprietor are identical. The proprietor's and the proprietorship's assets and liabilities are also unchanged.
One individual owns, runs, and controls a sole proprietorship business. Therefore, proprietorship businesses have no opportunity to issue shares or have investors.
Depending on the industry you work in. Any company that has a fiscal year revenue of more than 20 lakhs (10 lakhs in North Eastern states) is required to register for GST. Businesses must register under the Shops and Establishments Act if they are engaged in consumer sales of goods or services from a commercial facility.
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