The salient features of Sole Proprietorship are as under:
A sole trading firm is owned by one individual with unlimited liability in which the proprietor is responsible for the management and capital requirements of the business.
A Sole Proprietorship concern has no separate legal entity independent of the owner. The owner owns the business and he owes everything the business owes.
The capital is invested by the owner from his personal resources. Another option is to borrow money from his friends and relatives if he cannot depend solely on his personal resources.
The liability of the Proprietor is unlimited. Dues of Business can be recovered from the personal property of the Proprietor in case the business assets are not sufficient to pay their debts.
Sole Proprietor is a one-man show. The sole trader provides management to the business. All the decisions, material procurement resources, employment of persons are controlled by the Sole proprietor. Also, he can delegate his duty to his/her subordinate if he wants.
The Profits earned from the business of the sole proprietorship belongs to proprietor and losses and risk are to be borne by him alone.
Sole Proprietorship is not governed by any special legislation.
Select unique name of your proprietorship business. Name should not trespass with others registered Trade Mark.
Tan is required to be applied, because as per income tax rules, person is liable to deduct Tax deducted at source on payments of specified nature to any other person.
To avail certain benefits of Govt schemes and benefits under MSME scheme, MSME registration is required.
It is mandatory for shops and the commercial establishments to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India.
To make sure that the citizens aren’t adversely suffering from hazard and nuisance by the improper carrying of trade practices hence, a License is necessary from the municipality within 30 days of starting the business.
State governments have passed specific legislation to impose a tax on profession, employment for calling of any nature, however, it can’t be more than Rs. 2500 per annum.
GST Registration is mandatory for each business engaged in providing services or supply of products, where the turnover exceeds Rs. 20 Lac or does even one transaction in an interstate trade.
If you are in the business of producing, trading, storing or dealing in any manner of food items, then the state level FSSAI registration or Central License is mandatory based on the turnover.
Retail Drug License is location-based and is issued by the State Government on the basis of certain norms and criteria. No entity can start or continue sale/trade of medicine without drug license.
Private Security Agency may be a lucrative business with immense potential; however, it can be started or continued only after obtaining a license from the competent authority as designated by the state government.
IEC is a ten-digit pan based registration with the DGFT. IEC is a mandatory prerequisite to start a business of Import or Export in India. Only one IEC code can be issued against a pan.
Disclaimer : 1) These packages are applicable where turnover is below Rs. 50 lakh in case of profession and Rs. 1 crore in case of business. 2) Business Current Account by ICICI Bank Limited. Subject to terms and conditions of ICICI Bank Limited.
To receive newsletter and
© 2020 Onfilling.com - Powered By ONFILING SERVICES PRIVATE LIMITED