How to Start a Proprietary Concern

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A sole- proprietorship concern shall be set up by an Individual. If more than one person wants to start a business, they have to choose among other options such as partnership firm, limited liability partnership (LLP) or a company. Proprietor is for the all the activities of his business. Proprietor's personal assets will also be affected if business assets are insufficient to settle business liabilities. Tax liability is in the name of proprietor or in the name of proprietary concern.

Features

  • Consultation on Sole Proprietorship
  • Shop License Registration

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5 Advantages of Sole Proprietorship

  • Less paperwork to get started.
  • Easier processes and fewer requirements for business taxes.
  • Fewer registration fees.
  • More straightforward banking.
  • Simplified business ownership

Information / Documents

Frequently Asked Questions

Why should one choose a Sole Proprietorship firm?

A sole proprietor is one of the best choices for entrepreneurs who wish to handle everything on their own. Despite it, it has various benefits.

  • Provides flexibility in carrying out business activities
  • One of the oldest and easiest forms of business structures
  • Single hand control
  • Easy to start and close
  • Hazel free business structures with very few compliances
  • Self- Accountability
  • Being your own boss means you are not answerable to any shareholder/director
  • Decision-making power
  • Don’t have to share your income and profits with anyone
  • No disputes between the members

Benefits of a Sole Proprietorship Firm

Every business structure has its own benefits. Some of the specific benefits of a Sole Proprietorship Business are:

  • Individual’s Investment
  • To start a sole proprietorship business, an individual who acts as a sole proprietor can invest his personal assets, other financial resources or can borrow money to commence the business activity.
  • Ownership
  • A single person has the hold on the entire business and is the owner of the firm. Further, that person can transfer the ownership through a will or last testament as per his/her wish.
  • No Profit Or Loss Sharing
  • All the income generated or the loss or debt incurred by the company belongs to the owner, and he/she cannot share it with someone else.
  • Unlimited Liabilities
  • This feature sometimes acts as a flaw. Since business and the owner are no separate identity, personal property of the owner can be used to pay the debts of the business.
  • Fewer Formalities
  • With the ease of commencement, sole proprietorship comes with a few formalities before and after registration.
  • Control Power
  • Control power is in the hands of a single person, and he/she is not answerable to anyone else. The person should be capable of using his skills, expertise, and intelligence to carry on business activities.