Proprietorship
Get Started – From Rs. 2,000/-
Sole proprietorship is one of the old and most common forms of business organization in which an entrepreneur has to carry out a business and invests his own capital, uses his own skill and intelligence in the management of its day to day affairs and is solely responsible for the results of its operations. It legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a Company and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. A sole proprietorship often has the advantage of the least government regulation. However the existence of a proprietorship is established only by tax registrations like Sales Tax, Service Tax, etc. AuditNeeds will help you in establishing an identity for your Proprietorship by obtaining the relevant registrations.
Startup Process Time:
AuditNeeds can start up a proprietorship concern in 5 to 7 working days, subject to Government processing time.
Documents Required For Proprietorship:
- Copy of PAN card.
- Copy of Voter’s ID / Passport / Driver’s License / Aadhar Card.
- Passport size photograph.
- Copy of latest bank statement / telephone or mobile bill / electricity bill. (Should not be older than 45 days)
- Copy of Rental agreement of office address
- Copy of latest electricity bill and tax receipt in the name of landlord of office address.
Advantages Of Proprietorship:
- More Tax Benefits: A proprietorship with income of less than Rs. 2.5 Lakhs per annum is not required to pay income tax.
- Easy to Start: Sole Proprietorship firm needs no registrations, therefore it is very easy to start with no formalities.
- Lower Start up Cost: A sole Proprietorship is cheaper as compared to One Person Company and it has minimum compliance requirement.
- Audit not required: A sole proprietorship is not required to file audited statements with the Ministry of Corporate Affairs each year. However, tax audit may be required if earnings exceed certain prescribed limits.
- Less Government Regulations: A Sole Proprietorship is subject to very few statutory regulations when compared to One Person Company or Partnership.
Choose The Best Entity
| Proprietorship | Partnership Firm | One Person Company | Limited Liability Partnership | Private Limited Company | Public Limited Company | |
|---|---|---|---|---|---|---|
Governed By |
None | Indian Partnership Act 1932 | Companies Act 2013 | LLP Act 2008 | Companies Act 2013 | Companies Act 2013 |
Ownership |
One Person | 2 to 20 Partners | One Person | 2 to any number of Partners | 2 to 200 shareholders (Family & Close Friends) | 7 to any amount of Shareholders (Public) |
Liability |
Unlimited | Unlimited | Limited | Limited | Limited | Limited |
Growth Prospects |
Low | Moderate | Low | High | High | Very High |
Recommend For |
Small traders & manufacturers | Family & Friends Business | Solo Promoters | Professional Service Firm | Start ups and growing Companies | Large Scale Business |
Income Tax Rate |
Slab Rate | 30% | 30% | 30% | 30% | 30% |
Statutory Compliance |
Very Low | Low | Moderate | Moderate | High | Very High |
| Know more | Know more | Know more | Know more | Know more |
Proprietorship Registration
Get Started From Rs.2,000/-
Customer Review
"AuditNeeds provided the best financial expertise which assisted in establishing controls, streamlining processes and made the year-end audit run smoothly."
Karthik Selvaraj
Director | SK Capital City Makers Pvt Ltd
"Amazing support with timely advices that is of high standards and relevant to our business growth. AuditNeeds is very personable and they handle all my business needs"
Osman Abdul Razak
Director | Bespoke Label Pvt Ltd
"Extremely supportive in starting up our new concern and its subsequent growth. We recommend AuditNeeds for all Startups who are looking to grow their business."
Robert. Y
Director | SRS Diamond Tools Pvt Ltd
