About


Proprietorship is preferred forms of business in India by small businesses.

It is a business structure in which an individual and his/her business are considered a single entity for tax and liability purposes. The owner is inseparable from the proprietorship, so he/she is liable for any business debts.

One of the great features of a proprietorship is the simplicity of formation. In fact, no formal filing or event is required to form a sole proprietorship; it is a status that arises automatically from one's business activity.

Benefits


Trade Name

A proprietorship can operate under the name of its owner or it can do business under any trade name

Easy to Start

One can establish a sole proprietorship instantly, easily and inexpensively

Taxation

The owner does not pay income tax separately for the business, but he/she reports business income or losses on his/her individual income tax return

Least compliance

Proprietorship is very easy to manage and enjoys freedom from compliances

Ownership of assets

One may freely mix business or personal assets

Documents Required


  • Copy of

    Aadhar card/Voter id/Driving License/passport/Birth certificate

  • Copy of

    Electricity bill/Landline telephone or broadband connection bill/water bill/consumer gas connection card or book or piped gas bill/bank account statement/credit card statement

  • Passport size

    Photograph

Minimum Requirement


  • Person

    One

  • Fixed Capital

    No minimum Capital

You will get


  • Registration of

    Service Tax

  • Registration of

    VAT

  • Registration of

    Professional Tax

  • Registration of

    SSI

  • Get

    Import-Export Code

  • Shops & Establishments Act

Compare Your Options


  • Recommended For
  • Limited Liability
  • Accommodate Investment
  • Perpetual Succession
  • Statutory Compliances
  • Tax Advantages
  • Incorporation Document
  • Transferability of Ownership
  • Interest on Capital Contribution
  • Ownership of Assets
  • Maintenance of Accounts and Audit

Proprietorship

  • Small manufacturers & traders
  • No
  • Impossible
  • No
  • Minimal
  • Minimal
  • N.A.
  • Not Transferable
  • Not allowed
  • Proprietor is the sole owner of all the assets
  • Based on Turnover

Limited Liabilty Partnership

  • Professional services
  • Yes
  • Possible, but unlikely
  • Yes
  • Low
  • Most efficient
  • LLP Agreement
  • Possible
  • Allowed
  • Yes
  • Based on Turnover or Capital contribution
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One Person Company

  • Solo promoters
  • Yes
  • Possible, but severely unlikely
  • Yes
  • High
  • Few
  • MOA & AOA
  • Possible, but unlikely
  • Not allowed
  • Yes
  • Compulsory
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Private Limited Company

  • Start-ups and growing entities
  • Yes
  • Easy to accommodate
  • Yes
  • High
  • Few
  • MOA & AOA
  • Easy to transfer
  • Not allowed
  • Yes
  • Compulsory
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Public Limited Company

  • Medium to large scale entities
  • Yes
  • Easiest to accommodate
  • Yes
  • Very High
  • Few
  • MOA & AOA
  • Easiest to transfer
  • Not allowed
  • Yes
  • Compulsory
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