Proprietorship Firm Registration

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.It is the easiest form of business in India. A proprietor safeguards the capital, establishes and operates the business, assumes all the risks and hence accepts any profit earned or loss incurred by the business.

There is no bar in a proprietorship business as long as the activities are carried on within the legal frameworks of the Income Tax Act and other laws applicable for a proprietor as a citizen of the country.

In many cases it is observed that the difference of opinion between business partners on various issues relating to business simply ruin the business, the aspiring ideas of an entrepreneur find no place due to the mediocre attitude of other business partners and the business staggers from ill decisions, lack of risk taking ability and right penetration. A proprietorship business is the ultimate choice of an independent person who intends to do the business initially within a small periphery and who wants to master every nook and corner of his own business. He can hire the resources, fire the personnel, do whatever he thinks fit for the business. Furthermore if family members want to indulge in same line of business, two separate proprietorship business instead of a partnership business can save them huge income tax and increase the net cash inflow of the family.