- Lawyer Mr. Shaman Jain
- Skills Company Registration
- CATEGORY Business Registration, Intellectual Property
ABOUT THIS PRACTICE
In India there are many individuals who start their own business without seeking anyone else’s involvement. Such individuals are known as sole proprietor and their business entity is called as Proprietorship Firm. There is no difference between an individual and the business but people prefer this structure in initial stage of their business due to the lower tax rate, flexibility and many other such advantages.
Addition of partners results in reduced control over operation. Therefore, these proprietors prefer to run the business alone and opt for sole proprietorship firm registration. Sole proprietorship firm can be registered in many ways even though there is no specific Act to regulate this organization. This structure is favoured by small businesses which do not wish to take risks.
- You Are Your Own Boss: The proprietor possesses all the rights to decide about what to do and how to operate in a sole proprietorship . A proprietor doesn't need to report to anyone and also doesn't need to follow orders given by someone else. A third party cannot intervene in sole proprietorship. Unlike in a corporate firm, where compliances or disclosures are required during the complete financial year. Therefore, government interference is also minimal.
- Easy To Establish: Registration and establishment of sole proprietorship business is comparatively easier.No specific process is required to begin this business plus the cost of sole proprietorship registration is very less. The proprietor can run any legal business in his own name or with a different legal name as brand.
- You Own Whole Share Of Profit: The proprietor being the sole owner of the business owns the entire share of the profit generated by business. Here , the business assets are treated as assets of the proprietor and vice-versa which gives him the authority to decide when to withdraw or save profits.
- Tax Benefits: The same tax slab which is specified for an individual's income is also applicable to the income of sole proprietorship business and this shows that proprietorship business is not treated separately for income tax purpose. In comparison to other business structures the tax rates are also lesser for this. Deductions also add to advantages as a combined ITR is filed for both individual and the business.
- PAN Card: A self-attested copy of PAN Card of proprietor
- Aadhar Card: Self- attested copy of Aadhar Card of proprietor
- Bank Details: Details of the saving or current account of bank
Proprietorship can be recognised with individual name, but business name is preferable that it help building Brand Name
- Unique Name: Check for unique sole proprietorship name that helps recognising the proprietorship firm distinctly and build brand value.
- Business Object: A part of business name should suggest the business activity so that consumers can easily relate business with its offerings.
- Short and Simple: The name should not be unnecessarily long and should be simple enough to spell and remember.