What is a sole proprietorship?
Proprietorship is the legal identification of the entrepreneurship venture or different types of properties stating that it is recognized by the state and it is subjected to state tax structures and other state laws related to such entities.
Sole proprietorship simply refers to the simplest type of business form, in which there is only one owner for a single firm. Such a type of setup has no entity from a legal standpoint. It is the person who owns the business and is responsible for the debts that the firm is subjected to. For example, the small setups by the family like the family-run cafes and restaurants, beauty salons, bookstores, or any other setup are considered as the sole proprietorship.
Advantages and benefits of sole proprietorship business
- You’re your own boss- Nobody can tell you what to do. You can set your own rules and have the full freedom to play by them and also possess the power to tell your employees that you’re the boss.
- You keep the profits – Yes. The most empowering aspect of owning a business is the fact that you get to pocket all the profit that you earn from the business. This is a very fulfilling feeling.
- Start-ups are low cost and easy to set up – Considering the ease of infrastructure and a suitable environment to develop the start-up it is very easy and profitable to set up a business in today’s time. Nowadays more job creators are needed than job seekers, that is why it is important that more people get into this type of setup.
- You are allowed to have all the privacy that you want- yes, perhaps the most fulfilling aspect of this sort of business is that you have the guarantee of privacy. You can keep all these secrets with you in the safest and secure way possible.
- In a change of circumstance, it is easy to wind up the business in a sole proprietorship system and change the legal status. Such proceedings make this type of business structure one of the most convene
Just like every coin has two sides there are certain disadvantages to this type of business. Firstly, they don’t provide many opportunities for financial security and tend to keep the owner at perpetual risk of loss and financial instability. The losses and debts that the business incurs come at the shoulders of the individuals dealing with the business finances. Also, the slightest inconvenience in commercial activities can directly affect the owner. Such inconveniences can even bring the risk of legal hurdles. The parties conducting business can be at a vulnerable position of exploitation and stand at different positions of compromise.
Process of sole proprietorship registration
The sole proprietorship registration online process can be a bit tricky for some users. The businesses which want to avail the benefits of being in a partnership will have to register on the ‘Udyog Aadhaar Memorandum’ (UAM). In order to save you some time and do it properly, you can take the help of B N Corporates and do it correctly.
The Online Registration of sole proprietorship is a long and time-consuming process for someone to do all by himself. You can easily take the help of B N Corporates and their experienced employees will help you complete the registration within the shortest amount of time possible.
Documents required for proprietorship registration
To complete the Sole Proprietorship Registration, you have to submit the following documents:
- Registered office proof
- Bank Account
- PAN Card
- Aadhar Card