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Proprietorship Company

Proprietorship Company refers to business that legally has no separate existence from its owner. We Smartcorp offers various services like One person company registration, Private limited company registration, Public limited company registration for our valuable clients In Tirupur. The registration can be done quickly and efficiently with our experts teams. Proprietorship Company simply refers to a person who owns the business and he is personally responsible for its debts. The company can be operated under the name of its owner.

The proprietorship has no registration and there is no need for approval before using the name. The liability here is unlimited. The minimum and the maximum members can be one. There is no foreign ownership allowed. The sole proprietor must file a Schedule SE with Form 1040. One of the main benefits of the sole proprietorship is the tax breaks. The disadvantage is in getting capital funding, specifically through established channels, such as issuing equity and obtaining bank loans or lines of credit.

Features of Sole Proprietorship

  • Lack of Legal Formalities
  • The liability of the owner is unlimited. If the business fails to meet its own liabilities, the proprietor has to pay them.
  • If there is a loss in business the owner has to pay them and he should invest his total capital at the time of failure.
  • No separate legal identity will be given to the sole proprietorship. So the owner will be responsible for all the activities and transactions of the business.
  • The death, retirement, bankruptcy etc will have an effect on the sole proprietorship.

Documents Required

  • Aadhar Card
  • PAN Card
  • Bank Account
  • Registered office proof
  • Registering as SME
  • Shop and Establishment Act License
  • GST Registration