Registration of a Sole Proprietorship Firm in India with Pros & Cons
If you are looking for online or offline business then Sole Proprietorship is quite a good option.
Here you can test your startup ideas with small capital before you actually build up a big company. But if you want to go for something big then the private limited tag is a must and sure. Take expert advice on it.
Check out the advantage and disadvantage of Proprietorship Registration before you decide what you want to proceed
Advantages of Proprietorship Firm:
- 1 Person Required as Single Entrepreneur.
- Easy to Start and Easy to Close.
- Complete Control.
- Single Owner of the Business.
- Lower Cost of Formation and Compliance.
Disadvantages of Proprietorship Firm:
- Lack of Resources.
- Unlimited Liability.
- Lack of Credibility.
- Can not raise supports effectively.
- Can not include Partners.
Common Documents Required to Register:
1. ID Proof:
Passport/Pan Card/Voter ID/Aadhar Card/Driving License Copy of the Proprietor.
2. Business Place Address proof:
Need Rent Agreement, if Property on Rented and NOC from Landlord.
Need Electricity Bills, if Property is own or any other Address.
Note: Proprietor Business place and home place can be same.
3. For VAT:
Needed Security Amount as Fixed Deposit or needed minimum two surety of dealer which already registered in that state VAT Registration.
Note: In Some State Security Amount or Surety is not applicable like Delhi but in Most of the State its applicable and FD Amount or Guaranteed Amount Very as State wise Rules and Regulations.
So, these are the basic information about Proprietorship Registration which every Entrepreneur should know.