Sole Proprietorship
Sole Proprietorship:
Most enterprises in India begin individually, managed by one person, with no help from others. The Sole proprietor is an individual who engages in business operations, and the business entity is referred to as a Proprietorship Firm. It can be easily formed, thus making it one of the most popular businesses to start in the unorganized sector. However, because of the lower tax rate, flexibility, and several benefits, individuals favor this form during the early stages.
The inclusion of partners reduces control over the firm. As a result, these owners decide to handle the business independently and establish a sole proprietorship organization. Even though no official act governs this organization, registration is not mandatory; there are other ways to register a Sole Proprietorship organization like GST, MSME, etc. This structure is favorable to small enterprises that want to incur lower risks.
Be your own boss, start, control, and manage your business; TAX BARR will get your business registered for Sole Proprietorship at an affordable price.
Benefits of Sole Proprietorship Firm Registration:
A sole proprietorship gives the proprietor complete control over what they do. The involvement of the Government is minimal. There are just a few compliance and transparency standards that must be met throughout the fiscal year. Profits belong entirely to the proprietor, as no one else will control their business.
These are the benefits mentioned below for a Sole Proprietorship firm:
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Tax Benefits
For income tax purposes, a proprietorship business is not considered separately. The tax bracket selected for an individual's income is solely relevant to the business's income.
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Hassle-Free Setup
Registrations are required; nevertheless, a single proprietorship can create and collect payments from clients.
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Easy Compliance
No Annual compliance requirements other than the filing of Income-tax and GST.
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Less investment is required
Registering a proprietorship in India needs meager money. As a result, anyone with limited means can start a business through a proprietorship.
Documents required:
PAN CARD
A self-attested copy of PAN Card
of proprietor
Aadhar Card
Self- attested copy of Aadhar Card
of proprietor
Bank Details
Details of the saving or current
account of bank
Rent Agreement and NOC
Rent Agreement and NOC from the owner of the place of business, if rented