Proprietorship can be defined as one man army because of its sole ownership feature where a single person get all profits from business contarty to other company types. Proprietorship is nothing just an opening of Current A/c with bank on the basis of two government certified documents. Which could be GST Registration Certificate, MSME(Udhyog Adhaar), TAN registration.
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.In some states some other registration requires according to their municipal authority such as Ghumasta License, however it is not mandatory to have in every state across India.
Registration of sole proprietorship is much easy as compare to Private Limited Company. To register a sole proprietorship it does not require specific approval.
The owner of a sole proprietorship is not required to file a separate business tax report. Instead, they will list business information and figures within their individual tax return.
Control over all business decisions remains in the hands of the owner. The owner can also fully transfer the sole proprietorship at any time as they deem necessary.
A Sole Proprietorship is inexpensive as compared to a OPC or Private Limited, due to no requirement of compliances. It does not requirement of continues or event based compliance.
You can select any name of your firm according to your wish as it does not required registration. The name is not registered, other people can also use the same business name.
No formality needed for winding up or in closing a proprietorship. To close a proprietorship, there is only a requirement for the cancellation of the tax registrations.
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