Proprietorship Firm

One Person. Easy To Manage.

@ Rs. 2,899 *

*Subject To Change On Market Conditions

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A proprietorship is a kind of an unregistered business entity which is owned, managed and controlled by only one person. The sole proprietorship business is the most commonly found business in India and is operated by the majority of the micro and small businesses present in the unorganised sector of the economy.

Sole proprietorship businesses are simple to commence and have the least amount of regulatory compliance requirements for its working. This business works the best for solitary entrepreneurs who are stepping into the business world for the first time and prefer to deal with only small businesses with a limited number of clients.

Who Is A Sole Proprietor?

A sole proprietor is the owner of the given business. They (he or she) can not be a corporate or legal entity since that cancels the purpose of the category. A sole proprietor and their proprietorship are considered to be the same legal entity, which is why the actions of the owner and the business are tied to each other. This means that the owner can be sued for the discrepancies and misconduct of the business, and can also sue on behalf of the business. To put it simply, a sole proprietor is a business, and the entity perishes with the sole proprietor. Unlike other registered companies such as Private and Public Limited companies, a sole proprietorship does not enjoy the concept of perpetuity and going concern due to the entanglement of having no separate legal persona.

The PAN and other documents of the proprietor are utilized to obtain the business registrations and licenses for the sole proprietorship. If there are any issues of liability within the business, the proprietor is held accountable for it, which means that his personal assets can be used to pay off debts and insolvency.

The Advantages Of Sole Proprietorship

Simple to Establish

The sole proprietor can commence business operations and receive payments from clients because no registrations are required to start a sole proprietorship.

Minimal Compliance and Legal Interference

a sole proprietorship needs no additional compliance in most cases. The PAN of the sole proprietor and proprietorship are one and the same. Therefore only income tax returns through Form ITR-3 have to be filed every year.

Simple Dissolution

The sole proprietor does not have to officially wind up the business in case they want to shut their operations. This spares them a lot of money, time, and effort.


The Disadvantages Of Sole Proprietorship

No protection from liabilities

A sole proprietorship does not indemnify the sole proprietor with limited liability. The sole proprietor will be held personally liable in case of loss or insolvency.

Lack of transferability

 The ownership of a sole proprietorship and its licensing cannot be transferred to any other person or entity for any compensation or otherwise.


The sole proprietorship ends when the owner shuts the business, suffers incompetence, disability, or death.

Cannot Partake In Fundraising

A sole proprietorship is not allowed to raise funds from angel investors, venture capital firms, or PE funds. Banks, too, tend to limit the number of loans they can offer to proprietorships.



We offer all the services above so that you can focus on your business while we take care of the paperwork and compliance matters for you.