Mob : +91 95949 65755
Email :admin@businessmitra.in
 
Free Consultation

In proprietorship's journey, with Mitra we start ,  Building a dream, with passion and heart.  Building a dream, with passion and heart.  Building a dream, with passion and heart.
What is Proprietorship ?

A proprietorship firm is the simplest form of business organization, where a single individual owns and operates the business. In this structure, there is no legal distinction between the business and its owner, meaning the individual is personally responsible for all aspects of the business, including profits, debts, and liabilities. The formation of a proprietorship firm is straightforward, typically requiring minimal registration and legal procedures. The business operates under the owner’s name or a “doing business as” (DBA) name and is taxed as part of the owner’s personal income tax return. One of the main advantages of a proprietorship is the full control the owner has over decision-making, with all profits being retained by the owner. However, the key disadvantage is unlimited liability, meaning the owner’s personal assets are at risk if the business faces financial issues or lawsuits. Proprietorships are often used by small businesses or service providers who need a simple, low-cost structure to get started. However, due to limited resources, access to capital, and growth potential, this structure may not be suitable for larger or high-risk businesses. Ultimately, a proprietorship firm is ideal for those looking for simplicity, flexibility, and direct control but may face challenges as the business expands or requires more capital and protection from liability. 

 
 
🔑Key Features of Sole Proprietorship
Feature
Description
Ownership
One person owns the business.
Legal Status
No separate legal entity; owner and business are the same.
Control
The proprietor has full control over all decisions.
Profit Sharing
The proprietor receives all profits.
Liability
Unlimited liability – the owner is personally responsible for all business debts.
Taxation
Business income is taxed as individual income under Income Tax Slabs.
Compliance
Very few legal formalities and compliance requirements.
Continuity
Business stops on the death, illness, or incapacity of the owner. No perpetual succession.
Recommended Business Registrations:
Registration Name
Purpose
GST Registration
Mandatory if turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services), or for inter-state supply.
Udyam (MSME) Registration
Enables benefits from government schemes like subsidies, loans, and tenders.
Shop & Establishment Act
Required by local municipal corporations for physical shop/office premises.
FSSAI License
Required for businesses involved in food production, processing, or distribution.
Trade License
Issued by local municipal bodies to legally conduct business.

Connect with mitra now