What is a proprietorship/Proprietor?

Proprietorship is an unregistered business entity which is wholly owned and directed by an individual/ single person and the owner of the proprietorship business is known as a proprietor. It is the most familiar and common form of business on India.

To run a proprietorship business some registrations may be required depended on the nature of business.

Pros and cons:

In proprietorship business the pros and cons are the same i.e since the business is solely owned by the proprietor he has the whole power over the business and also an unlimited liability which is a disadvantage.

Documents required for Proprietorship registration:

• Photo of the proprietor
• Name of the business
• Registered office of the Business
• Pan and Aadhaar of the proprietor
• Valid email ID and Contact
• Rent agreement/EB documents of office
• SB account statement/pass book first page

Compliance requirements:

The business is required to file Income tax return if the turnover is more than 2.50 lakhs.

It is required to take GST registration mandatorily if the basic exemption limit is exceeded as per the Goods and Service Act. Presently the limit is Rs.40 lakhs.

Other registrations as prescribed by any other act/law.