Overview:
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 individual and in which there is no legal distinction between the owner and the business. A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors.
Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the startup phase, proprietorship’s do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business. Therefore, proprietorship’s are suited for unorganized, small businesses that will have a limited existence.
Procedure to be followed for starting Proprietorship:
R R H & Associates can help to start a Proprietorship in 7 to 14 days, subject to Government processing time. Since the proprietorship is itself not distinguishable from its owner hence there is no registration or approval is required to start a proprietorship business. Proprietorships do not have a process of incorporation. Therefore, our Business Advisors will advise you on the way the identity of the Proprietorship business can be established and also will help with other Government registrations like Trade License, Labour License, Food License, GST etc.,
There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. There is also no State or Central Government Authority governing the registration or operations of Proprietorships in India. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations. At R R H & Associates, we can help you establish an identity for your Proprietorship by obtaining the relevant registrations. For instance, MSME and GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a Sole Proprietorship.