About Simplify Tax
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even believable genera on the Internet tend to repeat predefined chunks as necessary making Internet.
Address
Get in Touch
open
 
Slide1 background

Sole Proprietorship

Sole Proprietorship

A business enterprise exclusively owned, managed and controlled
by a single person with all authority, responsibility and risk.


Advantages

  • A sole proprietor is the only owner, so is free to run the
    business just the way he wants to run it.
  • In a sole proprietorship one can keep all the profits
  • It can be started with low capital
  • The formation and operation of it requires almost no legal
    formalities.

  • Disadvantages

  • The proprietor is held personally liable for the liabilities of the sole proprietorship firm,therefore the proprietor has umlimited liability
  • The fund raising ability is also very limited.
  • Lack Of resources so less growth.
  • Cannot add partners.

  • Registration

    There is no formal procedure in India to register a sole proprietorship.In order to make the business legal and to get a bank account on the company name a sole trader or a proprietor has to register with one of many options available such as Service Tax,Sales tax,vat,Shop license.

Traditional
₹ 1000
  • Unlimited Bandwidth
  • Unlimit Space
  • 100 Database
  • 1000 Email Addresses
Documents
  • PAN Registration
  • Service Tax Registration
  • VAT
  • GST
  • Shop & Establishment registration

Faq's

What is a sole proprietorship ?

A sole proprietorship is the simple form of Business Structure having one owner and isn't required to register for starting up. Beginning a sole proprietorship is extremely simple and doesn't require a formal filing or paperwork process. All you have to do is simply go into business. A sole proprietor is exempt from tedious paperwork, but is still required to register under different acts for carrying out its business.

How is a sole proprietorship different from other Business Structures ?

Sole proprietorship is a business just like any other business structures, but they vay significantly in the following ways:

  • Sole proprietors are the cheapest business type when it comes to operational and other costs.
  • Sole proprietorships are the least complex of the legally recognized business structures.
  • Sole proprietorships are exempt from mandatory state registration Acts.
  • Sole proprietorships don't require formal paperwork.
  • Sole proprietorships don't shield individuals from business related debts or liability. The liabilities are unlimited and personal properties are also liable.
  • Sole proprietorships don't require a tax filing separate from personal income. Tax filling are same as personal income. Incase of other business structures the filling are done separately.

Can a Sole Proprietorship be converted into a Partnership or Company ?

Yes it can be converted. But additional Partner or Director is required. And compliance should be followed for converting.