A sole proprietorship is a kind of enterprise in which business is owned & managed by an individual. There is no legal difference between the owner and the business is a sole proprietorship business. To put it in another way a sole proprietorship is not a legal entity. An owner is responsible for clearing off the debts of the business. The sole proprietorship is a preferred & popular business form in India; simple and easy to form at a nominal cost. A sole proprietorship is a conducive and simplified way to commence a business in India. It is neither considered as a corporation nor a company and the business are owned by a single person who is the owner/director/shareholder of the proposed entity.
When single person runs a business then such kind of business is called as proprietary business, and the owner of the business is called as proprietor. Proprietorship is the most common form of the business which is used in India. You can start and operate the business with minimum regulatory compliance. However, there is no full-fledged way available to register your proprietorship by Indian Government. Tax registration and other business registration’s is the right way to show existence of your proprietary business.
Frequently Asked Questions
4 Steps to Register Proprietorship firm
You need to apply for obtaining the Permanent Account Number or PAN from the government to be able to run your business if you have not taken it till now in your name. In case you have PAN number then this step can be skipped.
You should always opt for a name for your entity which clearly defines the purpose of your business and is unique. Also, you need to pay attention that the name you are choosing is not in use by any other business, if possible.
Then you need to open a current bank account in the name of your entity. However, as there is no requirement for formal registration, you can go for other government licenses as per the legal requirements of your business.
Although it is not necessary, you can go for MSME Registration (now UDYAM) or SME Registration under the Micro, Small and Medium Enterprises Development Act, 2006. Getting registered under the MSMED Act can help you take benefits from the government schemes for such enterprises. You can also get GST Registration if the turnover of your business exceeds the limit for the same in your respective state.
Why Select Us?
Our foremost priority is to provide Instant Support and are always very particular on adherence of timely delivery so that you don’t miss out on deadline. We have worked with some most time strict clients and we have never missed our target. Our one thumb rule says that “If we miss a deadline we are out”. Accounts and Finance function need always alert eagle eye approach!
Our prices are most reasonable and under budget that you never realize any cost burden in your organization in comparison of value addition we bring in. We believe in adoption of your business first and fee shall take care of itself mantra. We never bill for disappointment and take ownership. It is how we like to be treated and that is how our customers are served.
We at AVS & Associates only recruit experienced, skilled professionals who have proven expertise in their field. With a diverse Team of Chartered Accountants, Company Secretaries, Lawyers, and various other consultants on board, we offer end to end financial and legal service under one roof saving time and energy and bring synergy effect between various functions.
Having over 20+ years experience in the leadership team ensure we maintain highest ethical standards and never go out of trust with you. We always believe in long term relationship with our clients hence integrity is something we value the most. We ensure transparency in communication, service and cost. Our specialized experts helps in maintaining high quality.