A proprietary firm or a sole proprietorship is a single man firm, where in the owner and the business is the same. It is most commonly found and the easiest to operate. A sole proprietorship isn’t a sperate legal entity and is not a legal person, so the onus of the liability is on the owner. So its safe to say that the owner or the proprietor has unlimited liability, which extends beyond his investment.
A sole proprietorship earning less that 2 lakh rupees needn’t pay any tax, any amount above 2 lakhs is taxable by the government, this is very similar to how individual taxing works. To get it registered, the first things that needs to be done is that a bank account must be opened in the name of the business.
Once the bank account is set up, the organization can start working. There is no additional paperwork required. According to what business the proprietor is doing he can apply for a MSME or GST registration. There is no registration certificate like other forms of business, the bank account or other registrations for the sole proprietorship like GST serve as proofs of the sole proprietorship.
Just need to hold a bank account, no other registration is required.
As the name suggests one owner is sufficient. A sole Proprietorship is only for single owner businesses.
It is the choice of the proprietor.
Yes, but that requires a different process which is governed by statutes.
Subscribe To Our Newsletter
Get updates and learn from the best
More To Explore