SOLE PROPRIETORSHIP FIRM REGISTRATION

SOLE PROPRIETORSHIP REGISTRATION

As the name suggests, a sole proprietorship firm is formed by one individual called the “proprietor” who will be solely responsible for the business and its transactions. A registered sole proprietorship company does not enjoy a distinct legal entity like a private limited company or a limited liability partnership. The owner and the proprietor and the firm all are treated as one unit, i.e. the firm and its owner are not different from each other. To register a sole proprietorship company in India, through Mibook the proprietor needs to choose a name for his or her business and a place to carry out the business. There are not any extensive legal formalities involved and even registering a sole proprietorship firm is not compulsory but doing so adds some perks for the smooth functioning of the business. This type of registration is for those proprietors who choose to run the business single-handedly. Although there is no specific Act to regulate this registration. But with the guidance of Mibook, the proprietorship company registration in India can be completed. Also, the small businesses aiming to take lower risks prefer this structure.

proprietorship company registration in bangalore

KEY FEATURES OF SOLE PROPRIETORSHIP FIRMS

sole proprietorship registration in bangalore

The proprietor is the sole person responsible for the business he or she shares the profits or losses incurred by the firm wholly. No other individual or party can claim any share or right to its profits or losses or over the property where the business is carried out or other assets used for business purposes. In fact, if the proprietor wants he or she can carry out the business from his or her personal residence too without any problem.

A proprietorship company registered in India ceases to exist in the event of death or incapability of the proprietor. Because there are no other partners exist to run the business and the situation of transferability of ownership rights does not arise.

To file its taxes, a sole proprietorship registered is required to fill out a form called Schedule C mentioning its various incomes and expenditures. The proprietor may wish to remove expenses such as transport, office, phone, etc while filing for the same. Mibook provides all the necessary information regarding proprietorship’s liabilities and rights.

SOLE PROPRIETORSHIP REGISTRATION IN BANGALORE WITH THE HELP OF MIBOOK

No legal formalities are required to register a sole proprietorship. If you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance graphic designer, you are a sole proprietor.

But like all other businesses, for proprietorship company registration in Bangalore, you need to acquire the necessary licenses and permits for which is the best way.

Regulations vary by industry, state, and locality. A sole proprietorship firm can be brought into existence by just opening a bank account in the name of the firm. This is because the firm is viewed as an addition to the proprietor. The proprietor needs to have a PAN card, a few required licenses, and funds to establish the firm. The proprietor then has to open a current account in the name of the firm and deliver two necessary documents as proof, from a list of documents that are acceptable. The list contains documents such as GST Certificate or Labour Certificate/MSME certificate, PAN and address proof of proprietor, rental agreement and utility bill for office address proof and mandatory CA certificate. The proprietor should submit two of these documents to open the current account with the bank. With the help of Mibook, you can get all understanding related to proprietorship company registration in Bangalore.

proprietorship company registration in bangalore

DOCUMENTS NEED TO BE SUBMITTED WITH MIBOOK FOR SOLE PROPRIETORSHIP COMPANY REGISTRATION IN BANGALORE

sole proprietorship registration in bangalore

PAN Card

Address Proof ( Voter ID, Passport, DL, or Aadhar)

Electricity bill + Rent agreement where you want to run your business

POINTS TO BE CONSIDERED WHILE SOLE PROPRIETORSHIP REGISTRATION IN BANGALORE:

Fewer Capital requirements

Lower Tax rates

Independent operations

Unorganized structure

Lower operational risk

Lower Compliance requirements

sole proprietorship registration in bangalore

ADVANTAGES OF PROPRIETORSHIP COMPANY REGISTRATION IN BANGALORE

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Simplified taxation requirements: Your business is not taxed separately, so it’s easy to fulfil the tax reporting requirements. At Mibook we suggest and guide our clients regarding taxation requirements. Profits flow directly to the proprietor’s personal tax return; they are not subject to the second level of taxation. In other words, profits from the business will not be taxed at the business level.

Easy and inexpensive to form: Mibook makes sole proprietorship registration in Bangalore inexpensive and easy for everyone. There is no need for an owner to legally register the business or to notify federal or state offices, as long as the owner is in charge of all the operations. Once the owner decides to register the proprietorship name and attain the appropriate licenses and permits, the minimal fees need to be paid.

Own the name of a sole proprietorship: As a sole proprietor, the legal name of your business is your personal name. If you wish to change this and operate your business under a different name, then you can register a sole proprietorship company accordingly with the help of Mibook.

No limit on the number of people: The most significant benefit of proprietorship company registration in Bangalore is that the number of people that can be employed is not limited and this enables one to grow and spread the team as per the requirement without the need to formally incorporate the business.

Complete control in owner’s hand: A sole proprietorship registered company allows the owner to have complete control over all sorts of business affairs. This eliminates the need to involve shareholders and consider their recommendations while decision-making. The owner can direct the strategy as needed, and take the startup in any direction He/She wishes to grow. Apart from the decision making the income generated through registered proprietorship companies is wholly and solely directed into the proprietor’s pocket or reinvested as he or she finds suitable.

Mibook India Consulting can help you in business registration, incorporation, GST registration in bangalore, GST filing in bangalore, ITR filing in bangalore.

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proprietorship company registration in bangalore