Proprietorship

Proprietorship

A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the startup phase, proprietorship’s do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business.Therefore, proprietorship’s are suited for unorganized, small businesses that will have a limited existence.

There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations. At AdroitCorporation.in, we can help you establish an identity for your Proprietorship by obtaining the relevant registrations.

Proprietorship Process


1.proprietorship Startup
AdroitCorporation.in can help startup a Proprietorship in 7 to 14 days, subject to Government processing time.
2.Startup Consultation
Proprietorships do not have a process of incorporation. Therefore, our Business Advisors will advice you on the way the identity of the Proprietorsihp business can be established through other Government registrations.
3.Service Tax Registration
The identity of a Proprietorship can be established through Service Tax Registration (if applicable) mentioning the business name. Service tax registration takes 10 to 15 days, subject to Government processing time.
4.MSME Registration
The identity of a Proprietorship can be established by MSME Registration (if applicable) mentioning the business name. MSME Registration can be completed in 10 to 15 days, subject to Government processing time.

 

Advantages
Easy to Start
A Proprietorship business needs no registration. Therefore, it is one of the easiest to start with no formalities. However, after starting up the Proprietorship, it is relatively harder to open a bank account or obtain a payment gateway in the name of the business – since more registrations may be required.
Business Name
Since the name of a Proprietorship is not registered, a Proprietorship can choose to have any name – as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.

FAQ


How to open a bank account for a proprietorship
How many people are required to start a Proprietorship?
Will my proprietorship have a separate legal identity?