The most awaited concept of One Person Company in India was introduced by the Companies Act 2013. It is ideal for those entrepreneurs who are confident in running their business alone. They can enjoy the status of a private ltd company but have a separate legal entity, perpetual succession, and transferability of business.
It is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor needs to register his name and get the local licenses and then he is ready for business.
Here in this article let us understand in detail about Proprietorship company.
What is Proprietorship Company?
A proprietorship is the simplest business form under which one can operate a business. Proprietorship is not a legal entity. A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one single person. Sole proprietorships are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirements for started and operating.
As mentioned above proprietorship company formation is beneficial to the business owners and one of the primary benefits is the ease of formation since government registration is not required. There are no fees to be paid for starting a one-man business on your own, and there is no government regulatory paperwork and compliance to be fulfilled. There are no minimum capital investment requirements, and the proprietor has full control and ownership stake.
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.
Here in this article, we have understood what is Proprietorship firm registration in India, they will be surely useful for you to grow your business. If you’re wondering for Sole proprietorship company incorporation then you should visit the Online Sole proprietorship registration portal.
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