Proprietorship Firm
A sole proprietorship Firm is the most common and traditional business type in India and all over the world. If you ask me why it is very common, the answer is that, the formation is very easy.
Its simply because there is no complex Government regulation to register a sole Proprietorship Firm as compared with other business entities like a Limited Company or a Partnership business.
Sole Proprietorship firm is nothing but, formed and owned by a Single Ownership. Only one person controls and owns the entire business.
The Proprietor and the Proprietorship Firm both are considered as one single entity.
Features of Sole Proprietorship Firm
1. A single ownership responsible for the profit and loss of the business.
2. There is no much legal compliances to form a Proprietorship Firm.
3. The Liabilities is unlimited on Proprietorship firm registration.
4. Both the Proprietor and the Firm are considered as a single entity.
How Taxation calculated for Proprietorship Firm
| TAXABLE INCOME | TAX RATE |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs. 5,00,000 | 10% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Is it need to have a separate PAN Card for Proprietorship Firm?
There is no separate PAN card to be obtained for a Proprietorship firm. As the proprietor and the proprietorship firm are considered as single entity, the proprietorship firm cannot obtain a separate PAN Card.
Benefits applicable of Sole Proprietorship Firm
- Decision making: Decision Making the most prime benefit in a Proprietorship concern. The owner of the business is the one point controlling authority of a business, there is no need for obtaining any approval from any Board or Directors or other partners.
- Easy to form: As there is no legal complexity to form a Proprietorship firm, it is simple to get established. Furthermore, there is no huge money required to form a Proprietorship business
- No restriction on Capital: There is no minimum or maximum authorised Share Capital requirement to form a Proprietorship Firm. The law doesn’t insist on capital for formation of a proprietorship firm.
- Tax benefits: There is a good advantage for Propritorship firm on taxation. Unlike Private Limited or Partnership it’s not flat 30% income tax to be paid. The taxation slab is mentioned below for your reference.
Field Specific Mandatory Registrations
Is there any mandatory requirement to run a business? Yes each business requires field specific registration. Eg. If it is
Goods and Service Tax Registration is mandatory if you are supplying Goods/Service within India. The basic exemption limit is Rs.20 Lakh. It will take minimum 3 to 4 days to obtain a GST Certification.
Required Documents: PAN Card / Aadhar Card / Passport size Photo / Rental deed / EB Card / Cancelled Cheque.
Micro Small Medium Entrepreneurs also called as Udyog Aadhar registration. As small scale industries are the back bone of the Country, Government is providing various schemes to the small and medium scale industries through MSME. The MSME registration is issued by the State Government and now from 2015 it is changed as Udyog Aadhar.
Micro Industry is which does not exceed Rupees 25 Lakhs of Capital.
Small Scale Industry is which does not exceed Rupees 5 Crores.
Medium Scale Industry is which the capital does not exceed 10 Crores.
The document that is required for obtaining UdyogAadhar/MSME are that the Proprietor's Aadhar Card and Bank Account details.
Trademark Registration
Trademark Registration protects your Company name, Brand Name and also Logo of any organisation. You would have seen with ™ & ® which represent Pending and Registered Trademarks Respectively. This will act as a proof to fight against Duplications.
Trademark Registration
Easy Steps to Register
Copyright Registration
Easy Steps to Register
Company Registration
Easy Steps to Register
Design Registration
Easy Steps to Register
Patent Registration
Easy Steps to Register
MSME Registration
Easy Steps to Register