Sole Proprietorship

A sole proprietorship is the most common form of business used by micro & small businesses in the unorganized sector. A proprietorship business is easy to start & has minimal operating regulatory compliance. As its name suggests proprietorship business is owned, controlled & managed by one person. It is most suitable for unorganized & small businesses because it does not provide benefits such as limited liability, corporate status, and separate legal entity, etc. The proprietor is personally liable for all the liabilities of proprietorship. The government does not provide any framework for registration of a proprietorship. Hence, it exists through various tax registrations & business registrations in the name of proprietors like GST registration, etc. to establish that the proprietor is operating a business as a sole proprietorship.
Radium Box offers various company registrations like private company registration, OPC, Section 8 Company, etc. Generally, it takes 3-5 working days to complete proprietorship registration subject to processing time & submission of documents.

Why Sole Proprietorship?

EASY TO ESTABLISH & CHEAP	Proprietorship requires minimal registration compliance & therefore cheaper to incorporate.
SOLE DECISION MAKER	Since, there is only one person who controls & manages the affairs of proprietorship; it is easier to operate a proprietorship. So, there is no requirement of a board meeting or approval, etc.
NAME OF BUSINESS	A proprietorship can choose any name as there is no requirement of registering its name as long as it is not infringing any trademark.
SINGLE OWNER & PROFITS	Proprietorship can be registered & operated by one person. So, it is a natural corollary that he is the sole owner of all the profits earned by the proprietorship.
TAX BENEFITS	Proprietorship is treated the same as an individual for income tax law. So, the exemption limit of Rs. 2.5L is also applicable to proprietorship & the proprietor would only have to file income tax returns if the exemption limit is crossed. Also, other slab rates as applicable to individuals are also applicable to proprietorship as well.
EXIT PLAN	Since, there is no separate identity of Proprietorship there is no formality of winding up or closing proprietorship. It can be closed down by just canceling the registrations obtained in the name of the proprietor.

Sole Proprietorship Registration Process

Radium Box Expert will advise you on the best way of establishing the identity of proprietorship & opening bank accounts in the name of the business on a case to case basis as there is no specific way of incorporation.

After selecting a suitable name, the identity of Proprietorship can be established by taking GST registration or SSI/MSME registration.

1. Aadhar card of proprietor
2. PAN Card of proprietor
3. Bank account
4. Registered office proof – if Rented Property then, Rent Agreement & NOC from Landlord but if self – owned property then electricity bill or water bill.