A sole proprietorship firm is such a type of business entity that is owned, controlled and managed by a single person. The owner of the Business is called Sole Proprietor of the Firm. As the business is run by a natural person, there is no legal difference between the promoter and the business. The promoter himself receives all the profits. It is very easy to start as there are less legal formalities and lesser formation costs involved. The government of India has not prescribed any registration mechanism for registering a proprietorship firm Thus, the registration of a proprietorship can only be recognized through tax registrations that the business is required to have as per the rules and regulations. These tax registrations may include GST Registration and ∕ or SSI ∕ MSME Registration that should be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.
Date posted:23-01-2020 10:34:07
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