What is Proprietorship Registration?
A Proprietorship is a business that is operated, managed and controlled by a single person called as proprietor. It’s safe and quick to start a small business in unorganized sectors. There is minimal regulatory compliances for proprietorship. However, for the entrepreneur, proprietorship does not offer a bundle of other benefits such as limited liability protection, separate legal entity, independent existence, shares transferability and most important is corporate structure.
Advantage of Proprietorship Business
Proprietorship business name is not required to register in India for doing a business, the owner of a business can choose any name and start a business as long as it does not infringe on a registered trademark of any other company or brand. Since proprietor name is not registered, any other person or company can also use the same business name unless the owner obtains a trademark registration.
Proprietorship with less than Rs. 2.5 lakhs of net income from the business is not required to pay any income tax. Also, profit from proprietor business is assessed as personal income of the owner.
Less Regulatory Compliance
Sole Proprietorships thru tax registrations, so proprietorship business has to file tax returns only.
From All Directors and Shareholder.
- PAN Card
- Latest Bank Statement/Telephone or Mobile Bill
- Voter’s ID/Passport/Driver’s License
- Passport-sized photographs