How to start a Sole Proprietorship firm

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PROPRIETORSHIP

• How to start a

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Proprietorship

• Proprietorship is a one man organization where a
  single individual owns, manages and controls
  business. To start a Sole Proprietorship firm,
  registration is not required. Hence it is easy to
  start and easy to close. On the other hand, a
  sole proprietorship does not provide some other
  benefits such as independent existence,
  transferability, separate legal entity, limited
  liability etc.

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Documents required for Registration
PAN card of the Promoter
Address Proof
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Registration Process

• Ways for registration
• There are total of 3 ways through which you will
  be able to incorporate a proprietorship.
• 1) Register under the Shop and Establishment
  Act-
• This step is only for those proprietors who use
  their shop as a place of business. Here, a shop
  could mean an office, store-room or a warehouse.
  It does not include a factory, a restaurant, a
  theater or any other commercial establishments.

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Registration Process

• 2) Get Udyog Aadhaar registration under the
  Ministry of MSME-
• The Ministry of MSME provides Udyog Aadhaar which
  is a unique 12-digit Government identification
  number for the small and medium enterprises to
  register them as MSME.
• 3) Get a GST registration-
• A proprietor firm can be registered under GST if
  the annual turnover is more than Rs. 20 lakhs.
  PAN card is required for the registration of
  proprietorship and the PAN card should be in the
  name of the sole proprietor.

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Advantages

• There are several reasons why someone would
  prefer to begin his business using a sole
  proprietorship concern. Benefits of a
  proprietorship concern include
• Easy Formation Beginning a sole proprietorship
  concern is way easier and less sophisticated than
  starting any other form of business, and it is,
  additionally, much cheaper. Proprietorship will
  be named after the name of the owner, or a
  fictitious name can also be used to enhance the
  business marketing or any name of the owners
  selection.
• Tax Benefits The owner of a sole proprietorship
  does not have to be compelled to file a separate
  business tax return. Instead, the business data
  and figures are going to be listed in individual
  returns. The business is going to be taxed at the
  rate of personal income tax and not at companys
  tax rates. The owner can get the benefit from all
  the deductions that are allowed to an individual
  by the income tax.
• Decision Making Management over business related
  decisions or choices remains within the hands of
  the owner.

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Disadvantages

• Starting a sole proprietorship concern
  could also be straightforward and hassle-free.
  However, there are some disadvantages to start a
  business in the name of sole proprietorship
  concern.
• Unlimited Liability The owner and also the
  business don't seem to be treated individually in
  a sole proprietorship concern. The owner is made
  accountable for all the debts, losses or
  violations returning from the business. As an
  example, the owners personal funds will ne
  utilized to pay any debts or losses faced by the
  business.
• Lack of Continuity The business does not
  continue if the owner becomes incapable of
  running the business. Sole proprietorship concern
  doesn't have perpetual succession.
• Difficulty in Raising Capital Since the initial
  funds are usually introduced by the owner,
  sometimes it may be tough to induce capital. A
  sole proprietorship concern cant raise VC fund.

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About

• Myefilings is a professional service provider
  we offer online company registration
• services to business startups small businesses.
  We also provide LLP trademark registration,
  accounting, legal services and more.

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• Thanks for watching this presentation till the
  end. If you have questions regarding starting a
  Proprietorship firm, feel free to contact us on
  support_at_myefilings.com

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• To know more about our services, visit-
• https//www.myefilings.com
• For Private Limited Company Registration, visit-
• https//www.myefilings.com/proprietorship-registra
  tion

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• Starting a Business Was Never So Easy