rakesh2kumarのブログ

sole proprietorship registration

Sole Proprietorship is one of the most common forms of business worldwide. As its name suggests, Proprietorship is a business in which a single person owns the assets and affairs of the business. In this article, we discuss the advantages as well as disadvantages of a Proprietorship Firm Registration in India. To know more about sole proprietorship registration in India, connect with the legal experts at Registrationwala. 
 
 
Advantages of a ,< a href="https://www.registrationwala.com/sole-proprietorship">Sole Proprietorship Registration</a>
 
The following are some of the advantages of online  <meta name="uuid" content="uuidlTOjaFdnYqsv" /><meta charset="utf-8" /><a href="https://www.registrationwala.com/sole-proprietorship" target="_blank">Sole Proprietorship Registration</a> in India: 
 
Quick to Establish 
A proprietorship business does not have any registration requirements. Also, the Proprietor’s legal identity is used by the sole Firm. Hence, a sole proprietorship can be started without any legitimate registration. Just by using the PAN and Aadhaar card,  the applicant can obtain the Udyog Aadhaar registration as well as the Trademark Registration. Trademark registration is necessary to protect the identity of the business.
 
Easier to run Business Operations
 
As a single person is responsible for everything, it is easier to operate as the Owner will be the sole decision maker. Also, the Owner does not need to consider the opinions of other stakeholders. In a Proprietorship, there is no concept of a board meeting. Neither does the Owner need approval from others in a proprietorship.
 
Profits attributed to the Single Owner
 
Only businesses such as Proprietorship and One Person Company entitles their Owner as the sole beneficiary of the earned profits. The Authority requires the involvement of a minimum of two stakeholders in other types of corporate entities like an LLP or a registered Company.
 
No Compliance & limited Taxation involved in a Proprietorship
 
Since a Sole Proprietorship Registration is not registered with any Government Authority, its compliance requirements are minimal, if not zero. Furthermore, the Owner alone has to file his ITRs if the registered Proprietorship Firm has an annual taxable income of more than 2.5 lakhs rupees. In the case of proprietors of age 60 years or more during the fiscal year, the applicant needs to file the Income Tax Return only if the annual taxable income is more than three lakh rupees. If the sole Proprietor has attained the age of 80 or more, he must file the income tax only if his annual taxable income is more than five lakh rupees. 
 
Privacy can be maintained in a Proprietorship 
Every Proprietorship is an unregistered entity. The Government maintains no database of a list of sole proprietorship registrations. Hence, proprietorships are more private when compared to other corporate entities whose details officials publish on the Ministry portal.