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Proprietorship Firm

Proprietorship Firm Registration

A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship’s are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors.Proprietorships are very easy to start and have very minimum regulatory compliance requirement for started and operating.There is no mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations.Proprietorship is recognized by other registrations, such as a service or sales tax registration & Goods and Service Tax Registration. It has too many shortcomings, such as unlimited liability of proprietor, and it does not have continuous existence. For these reasons it is considered by small merchants and traders as a business structure.