Thinking of starting a new business, sole proprietorship firm is theultimate option for you. Let us give you a brief about what a sole proprietorship firm is and also how it can be beneficial or non beneficial.
A sole proprietorship is an oldest and the most common form of an unincorporated business widely popular among the unorganized sector, mainly small traders and merchants.It is a one-man organization where a single individual owns, manages and controls the business. The owner of a firm is known as a sole proprietor.
Therefore, it could be imagine as a business that is so easy to establish and run. Businesses which engage small financial resources, minimum capital requirement and moderate risks are highly suitable for this simplest form of organization.
As such sole proprietorship firm is not required to be register with the government but there is certain business licenses required while starting a sole proprietorship firm. These licenses depend on the type of business you are going to run like product based business or service based business.
Based on the type of business, you may require the following things or easy registrations to acquire for establishing the sole proprietorship firm in India.
Dealing with proprietorship firm registration can be a hectic and tedious job while one is already pre-occupied with business initiation. We at LexOracle will handle the entire registration process and get you requisite documents to let your ideas fly!
Q) What is a sole proprietorship?
A sole proprietorship is a business with one owner, the sole proprietor, that is not organized or formed as a legal entity under any union or state law. There are some special exceptions where a husband and wife may be file to be considered joint owners in a sole proprietorship.
Q) Can a sole proprietorship use the word “company” in the trade name?
No. NDCC, Section 47-25-03 provides:
“A trade name may not contain the word “company”, “corporation”, “incorporated”, “limited”, “limited liability company”, “limited partnership”, “limited liability partnership”, “limited liability limited partnership” or any abbreviation of any of these words unless the owner of the trade name is a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership as indicated by the words used in the name.”
Q) Can I convert my sole proprietorship to a different business structure, e.g., a corporation, and continue to use the name I developed as a sole proprietorship?
You, as the registrant of the trade name, will have to either:
Grant consent to use of name to the newly forming entity,
Assign the trade name to the newly forming entity; or
Cancel the trade name registration at the time the new entity is filed with the Secretary of State.
Your essential business identity can be retained, but the creation of the new business structure may require some minor change to the name such as adding “corporation”, “incorporated”, “limited liability company”, etc., or an abbreviated version of an entity indicator.
Q) Can I convert my sole proprietorship to a different business structure, e.g., a corporation, and continue to use any licenses or permits that I held as a sole proprietor?
Likely not. A different business structure is a separate legal entity from the sole proprietorship. Licenses are not usually transferable from one business structure to another. Consult legal counsel or the agency that issued the license.
Q) What are the liabilities of sole proprietors?
The sole proprietor is personally liable for financial debts of the business and any claims brought against the business to the full extent of his personal assets.
Q) How are they taxed?
The IRS sees the sole proprietor and the business as the same for income tax purposes. The sole proprietor pays income taxes on the profits of the business as though it were personal individual income.
Step1:- Let us know your need, whether you require VAT-TIN, Service Tax or any license etc
Step2:- Make required payment
Step3:- Submission of requisite documents
Step4:- Sit back and relax! We’ll handle everything rest
Click on apply now and get it done right away!!
LexOracle provides Sole Proprietorship Registration with VAT/CST registration, Proprietor PAN Card, Import and Export code, TAN registration, Professional tax, Shops and Establishment license, Service tax registration and everything with all-inclusive packages. So send your query now and get it done right away!
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