Proprietorship Firm

  • A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person.

  • Sole proprietorships are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganized sectors.

  • Proprietorships are very easy to start and have very minimal regulatory compliance requirements for started and operating. However, after the startup phase, proprietorship does not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence – which are desirable features for any business.

  • All the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.

STEPS

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