Proprietorship

Proprietorship is a business that legally has no separate existence from its owner. The owner is an Individual him/herself personally liable for all liabilities and Income earned and losses suffered are taxed on the individual's personal income tax return.

• Single Ownership. No one else will be involved as an owner.
• The formation of a Business is very easy. It requires very few documents.
• Low Capital investment.
• The owner will conduct all tasks.
• The whole risk of the entity is liable to the owner.
• The owner will entitle profit/Loss.
• The owner is not separate from the business activities.
• The stability of the Proprietorship is not certain because, at any time, the business may wind up due to the loss or death of the owner.
• It doesn't have any separate law to govern it.
• PAN of the Proprietor and Proprietorship are the same.
• They cannot raise equity funds from Angel Investors, Venture capital, and private equity funds.
• To avail a loan from the banks, the Proprietor is required to give is personal guarantee by way of pledge his own property.

Ease of formation: It is less complicated because all the KYC of Individual is sufficient for the registration no separate legal entity is formed and cheaper to start. The business can be carried at any trade name as per the discretion of owner but caution should be taken that the same name shouldn’t be a registered trade mark.

Tax benefits: The owner of a sole proprietorship need not file a separate tax report for his business. The income tax slab applicable for individual is applicable for business as well hence the benefit of progressive slab is available.

Easy Maintenance: There is no additional cost of annual compliance reporting to any statutory authority.

• A resident of India should start the proprietorship firm
• Choose a business name and decide on a location to start the business.
• It can be started with a small amount of capital.

• Pan Card of Proprietor (Self attested)
• Identity Proof of Proprietor - Aadhar Card or DL or Voter ID or Passport (Self attested)
• 1 Passport size photo of Proprietor.
• Proof of Office address (Lease Deed/ Rent Agreement )
• Copy of Latest Electricity Bill or Property Tax paid receipt of Office address.

• Registering as MSME
• Shop and Establishment Act license
• GST registration (Turnover above 20 Lakhs is mandatory subject to specified conditions)
• Employer/Employee Professional Tax (Based on state legislative requirement)
• IEC Code Registrations (Required only when business involved in import & Export)
• Trade License (Applicable only for specified business)
• FSSAI – Food License (Applicable for every Food Business Operators like Restaurant’s / Hotel’s / Retailer / Whole seller / Manufacturer / Import & Exports etc)

• Provide your document with MKDA.
• Pay the registration fees via Online/Cash Payment.
• We assign you a manager who will assist you with your requirements.
• We prepare the applications and get your signatures
• We submit the signed documents to the appropriate authority.
• Once your proprietorship Firm is registered, we will send your registration certificate.