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Sole Proprietorship: A better model for Single Business owners rakesh2kumar @rakesh2kumar · 24m
A Sole Proprietorship is a business model famed among shop owners. With few regulations, it can be a go-to choice for many shopkeepers.
When you apply for Sole Proprietorship registration online, your idea of a business entity differs from the rest. You are not looking for a robust structure. But instead, you are looking for a more accessible way to conduct Business. Simply put, you think about firm registration for Proprietorship because of the following differences it has from other business entities in India.
Benefits of Sole Proprietorship Registration Proprietorship requires no MCA Regulations Unlike most business registrations in India, a Sole Proprietorship doesn't have any regulatory authority. There is nobody other than the standard Income Tax Department watching over those with the Sole Proprietorship license – a term we use exceptionally loosely. Sole Proprietorship requires no Annual Compliance One that sets a Sole Proprietorship is that there is no need for annual compliances unless you discount. Many times people ask the question – Do I need to register for a Sole Proprietorship in India? Proprietorship requires no Backing You must learn about everything independently if you attempt proprietorship registration in India. Without no regulatory authority, there are not many rules you can follow. And without regulatory compliance, you don't know the constraints within which you can do your Business. Sole Proprietorship has no Business Agreement There is no Memorandum of Association (MoA) for a Sole Proprietorship. Traditionally, an MoA is the core document that states the purpose of your Business. While some legal document during online proprietorship registration says the Business, it is not as robust as a Memorandum of Association or an LLP Agreement. Sole Proprietorship places no restrictions on its Nomenclature Because of the lack of regulations, there are benefits when registering a proprietorship in India. There is no concept of firm name registration. You can give any name to your Proprietorship – even your name would suffice. Perks of opting for a Sole Proprietorship business model After registration of a Proprietorship firm in India, you gain access to the following perks: Ease in Registration Because of a lack of Regulatory Authority, you have to take a different approach to register a Proprietorship Firm in India. The