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 steps are pretty simple, and they all involve submitting an offline application to your regional office.
No Regulatory or Statutory Requirements
Due to the lack of oversight, there are not many regulatory requirements for you to follow. You can fill out your Income Tax Returns each year – GST returns if you earn more than enough – and you are good to go.
Ease in maintaining the Business
There are not many components for you to consider. A Proprietorship is very easy to manage as a single-owner business registration. In most cases, only small shops go for Proprietorship Business Registration. And other than taking care of backend finances, there is not much infrastructure you need to bother yourself with.
Freedom in conducting Proprietorship Operations
As you can start your business solo, you are free to conduct your business any way you want. Consider a sole proprietor, a lone ranger in the forest of business entities that can conduct his Business without being bothered by needless regulations.
Proprietorship requires no Registration Certificate
A Proprietorship Firm Registration certificate in India does not exist. Furthermore, there is no existence of any proprietorship registration either. Then what is the proof of business ownership for a Sole Proprietorship? Without a Proprietorship Registration certificate, it can be challenging. Isn't it? Not really. All you need is a bank account in your company's name that will prove that you have registered a proprietorship firm online.