A Sole proprietorship is a business which is owned, managed and controlled by a single person. It is one of the most common form of business in India, utilized by small businesses operating in the unorganized sectors. Proprietorship is recognized by other registrations, such as a service or sales tax registration. It has too many shortcomings, such as unlimited liability of proprietor, and it does not have continuous existence. For these reasons it is considered by small merchants and traders as a business structure. Sole Proprietorship Registration is done through Pksofech Privite Limited.
Choose proprietorship because
Why Sole Proprietorship?
Proprietorship requires minimal registration compliance & therefore cheaper to incorporate.
Since, there is only one person who controls & manages the affairs of proprietorship; it is easier to operate a proprietorship. So, there is no requirement of a board meeting or approval, etc.
A proprietorship can choose any name as there is no requirement of registering its name as long as it is not infringing any trademark.
Proprietorship can be registered & operated by one person. So, it is a natural corollary that he is the sole owner of all the profits earned by the proprietorship.
Proprietorship is treated the same as an individual for income tax law. So, the exemption limit of Rs. 2.5L is also applicable to proprietorship & the proprietor would only have to file income tax returns if the exemption limit is crossed. Also, other slab rates as applicable to individuals are also applicable to proprietorship as well.
Since, there is no separate identity of Proprietorship there is no formality of winding up or closing proprietorship. It can be closed down by just canceling the registrations obtained in the name of the proprietor.