EASIEST WAY OF
“one-man organisation where a single individual owns, manages and controls the business.” The sole proprietorship is the simplest business form under which one can operate a business
Sole proprietorship, as defined by the Govt. Of India, is a “one-man organisation where a single individual owns, manages and controls the business.” The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure necessary local licenses, and the sole proprietorship is ready for business.
This is not a legal entity. It simply refers to a natural person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name, which is simply a trade name. It does not create a legal entity separate from the sole proprietor owner.
You get to keep whatever profit or income you generate. Furthermore, the tax benefits of sole proprietorship prevent double taxation of the firm. You will file returns and pay taxes only in your personal name. There are no separate income tax returns to be filed and no tax to be paid by the firm.
There is no government registration needed in order to start a sole proprietorship business in India. However, you do need to open a current account with a bank in the name of the business. A current account in turn requires that you have a specified location from which you are doing business. The bank will ask you to submit at least two documents as proof of business location in the form of government registrations such as ID proof, address proof and other documents.
Reason to go for Proprietorship
01/ Ease of Formation
Ease of formation, since a government registration is not required. There is no government fee for registration it also saves us from cumbersome compliance.
Under this form of business you are required to pay tax only once i.e. the taxes will be paid by you only not by business unlike other structure of business.
02/ No Minimum Capital
You Don't need to have lot of money to start your business. You can get going even small investment which saves you from engaging lot of money in your working capital
05/ Business Name
Since the name of a proprietorship is not registered, a proprietorship can choose to have any name - as long as it does not infringe on a registered trademark.
As the name explains, you're the sole owner of business which gives you full control over it. It means that you have the full decision making power.
06/ Ease to Close
As there is no registration required in starting the business no formalities or legalities are required for its closure you can do this whenever you like it.
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