A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.<\/p>\n\n\n\n

\n Advantage<\/strong><\/h3>\n \n Full ownership and control.<\/li>\n Less capital involved.<\/li>\n Profits are not to be distributed.<\/li>\n Ease of formation.<\/li>\n Complete control over all the aspects of the business.<\/li>\n Strong Interpersonal relationships with clients, customers, and employees.<\/li>\n<\/ul>\n<\/td>\n

\n Dis-Advantage<\/strong><\/h3>\n \n Owner alone bears the losses.<\/li>\n limited availability of funds.<\/li>\n Unlimited liability of owner.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Applicability of Registration<\/strong><\/h2>\n Since the proprietorship is itself not distinguishable from its owner hence there is no registration or approval is required to start a proprietorship business in India. However, Registrations required as per another statute.<\/p>\n Registration under Shops and Establishment Act<\/strong><\/h2>\n This is a state specific requirement, in some states it is mandatory and in some, it is optional, for example in the Delhi NCT it is optional.<\/p>\n Sales Tax (VAT) Registration<\/strong><\/h2>\n This is a tax on sale of goods within the state which is governed by the respective vat act of the state.<\/p>\n Central Sales Tax (CST) Registration<\/strong><\/h2>\n This is a tax on Sale of goods between the states, which is governed by the central sales tax act<\/p>\n Local<\/strong> Municipality<\/strong> Registration<\/strong><\/h2>\n This kinds of registration is mandated by some of the municipalities and applies to the firms operating in the territorial jurisdiction of the municipality.<\/p>\n Service Tax Registration<\/strong><\/h2>\n This is a tax on the services provided by the proprietor apart from the negative list of service.<\/p>\n Other Need Based Registration<\/strong><\/h2>\n Import -Export Code (IEC), Trade Mark Registration, Provident Fund Registration (PF), Employee State Insurance Corporation (ESIC) Registration, Excise, Customs, SSI etc.<\/p>\n","protected":false},"excerpt":{"rendered":" A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"ngg_post_thumbnail":0,"footnotes":""},"class_list":["post-68","page","type-page","status-publish","hentry"],"yoast_head":"\n