A sole ownership is a kind of unregistered business element that is possessed, overseen and controlled by one individual. Sole ownership is the most widely recognized kind of business in India and it is utilized by generally small scale and micro entities running as unorganized segments. Proprietorships are easy to begin and have negligible administrative consistence necessities for running. This element is perfect for business visionaries who are getting into business just because and for private ventures with only few customers.
How one becomes a proprietor?
The proprietor of a sole ownership business in India is known as an owner. It can't be a corporate or separate legal entity. The owner and the ownership are viewed as a similar in legitimately. The PAN and of the proprietor is the document used for obtaining all other registrations such as GST. In case of any liability (loss) in the business, the proprietor is liable to pay from his asset.
- Easy to setup: Individuals can start business operations and receive payments from clients as basic registrations is enough to start a proprietorship concern.
- Less compliance Proprietorship concern need not maintain any specific record and file compliance with any authority other than filing Income Tax return of the proprietor since the PAN of the proprietor and proprietorship are one and the same.
- Unlimited liability: In a sole proprietorship, Proprietor cannot enjoy limited liability like in case of One person company / Private limited company / Limited liability partnership the proprietor is personally liable if there is any loss or liability occurs for the proprietorship.
- 2. Transfer and conversion of entity: Any registration taken in the name of the proprietary concern cannot be transferred to any other individual or company, conversion of proprietorship into any type of entity is not possible.
What are the types of proprietorship registration?
- MSME/SSI/UDYAM REGISTRATION.
- GST REGISTRATION.
- IMPORT AND EXPORT CODE (IEC).
- FSSAI REGISTRATION (FOOD INDUSTRY)