Proprietorship is managed by the individual person. Most of the small scale business prefers the sole proprietorship registration. Individuals, who would like to control over the entire business operation and run it as a small/ medium business can opt for this Proprietorship business. Commencing a sole proprietorship is easy and simple and it has a very less legal formalities for conducting the operation and it is one of the oldest form of business entity. The owner has the complete control in the company’s finances and operations and they make business decisions independently. This is a form of business organization which is owned and managed by a single individual, who shoulders the responsibility of running the business and takes the profit or loss. In this type of business form, single person is responsible for investment and bears the risk of the enterprise.
It is the simplest form of a business very popular among small and medium businesses, freelancers and Individuals. Sole proprietorship is an easy and inexpensive process and does not create a separate legal entity. There is no separate legal registration for Proprietorship Company. It will be established through MSME / SSI / Udyam registration, GST registration, Import and export code Registration, FSSAI registration (food industry) etc.
Tax Advantages Sole proprietorship:
The proprietor pays personal and entity income tax together at end of financial year. There is no Income tax separately for the entity. This is considered as Hidden Tax Benefits in Proprietorship Company.