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Sole proprietorship

Documents required for formation of sole propreitorship?

Posted By admin on December 25, 2013 No Comments

Documents required for formation of sole propreitorship

APPLICATION FORM

  • 1 Photograph
  • Id of the proprietor like Election Id Card, Pan Card, Passport, Driving Licence etc
  • Address Proof like Rent agreement, property document, electricity and water bill and NOC from the Landlord
  • Please also give us the name as well as nature of the business
  • Please also give us the date of commencement of business

In case you need any further information

Contact us at 9818092002
Email :info@mcaindia.co.in

Form your Sole proprietorship in Just 3 days time

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Limitations of Sole Proprietorship?

Posted By admin on December 25, 2013 No Comments

Limited Capital

  • In sole proprietorship business, it is the owner who arranges the required capital of the business. It is often difficult for a single individual to raise a huge amount of capital.
  • The owner’s own funds as well as borrowed funds sometimes become insufficient to meet the requirement of the business for its growth and expansion.

Unlimited Liability

  • If sole proprietor fails to pay the business obligations and debts arising out of business activities, his personal properties may have to be used to meet those liabilities.
  • Sole proprietor hesitate from taking risks and he thinks cautiously while deciding to start or expand the business activities.

Lack of Continuity

  • The existence of sole proprietorship business is linked to the life of the proprietor. Illness, death or insolvency of the owner brings an end to the business. The continuity of business operation is therefore uncertain.

In case you need any further information

Contact us at 9818092002
Email : info@companyindia.co.in

Limited Size

  • In sole proprietorship form of business organisation there is a limit beyond which it becomes difficult to expand its activities.
  • It is not always possible for a single person to supervise and manage the affairs of the business if it grows beyond a certain limit.

Lack of Managerial Expertise

  • A sole proprietor may not be an expert in every aspect of management.
  • Because of limited financial resources it is also not possible to employ a professional manager. Thus, the business lacks benefits of professional management.

In case you need any further information

Contact us at 9818092002

Email : info@companyindia.co.in
In case you need any further information
Form your Sole proprietorship in Just 3 days time
Contact us at 9818092002
Email : info@companyindia.co.in
For more query,information and suggestions

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ADVANTAGES OF SOLE PROPREITORSHIP?

Posted By admin on December 25, 2013 No Comments

Easy to Form and Wind up

  • A sole proprietorship form of business is very easy to form.
  • Need to invest only small amount of capital
  • There is no need to comply with any legal formalities except for those businesses which required licence from local authorities or health department of government.
  • It is very easy to wind up the business.
  • It is your sole discretion to form or wind up the business at any time.

Direct Motivation

  • The profits earned belong to the sole proprietor
  • He bears the risk of losses .
  • There is a direct link between effort and reward which work as an incentive to work hard.

Quick Decision and Prompt Action:

  • In a sole proprietorship business the sole proprietor alone is responsible for all decisions.
  • Properitor is free to take any decision on his own.
  • No one else is involved in decision making so quick and prompt action can be taken on the basis of this decision.

Quicker Tax Preparation

  • As a sole proprietor, filing your taxes is generally easier than a corporation.
  • File an individual income tax return (IRS Form 1040) including your business losses and profits.
  • Individual and business income are considered the same and self-employed tax implications will apply

Ease of Money Handling

  • Handling money for the business is easier than other legal business structures.
  • No payroll set-up is required to proprietor can set up separate bank account to keep
  • business funds separate and avoid co-mingling personal and business activities

Better Control

  • In sole proprietorship business the proprietor has full control .
  • He is the planner as well as the organiser, who co-ordinates every activity in an efficient manner.

Maintenance of Business Secrets

  • Business secrecy is an important factor forevery business.
  • The proprietor is in a very good position to keep his plans to himself since management and control are in his hands.
  • There is no need to disclose any information to others.

In case you need any further information Contact us at 9818092002 Email : info@companyindia.co.in Close Personal Relation

  • The sole proprietor is always in a position to maintain good personal contact with the customers and employees.
  • Direct contact enables the sole proprietor to know the individual likes, dislikes and tastes of the ncustomers.
  • It helps in maintaining close and friendly relations with the employees and thus, business runs smoothly.

Flexibility in Operation:

  • The sole proprietor is free to change the nature and scope of business operations as and when required as per his decision.
  • A sole proprietor can expand or curtail his business according to the requirement.

Lower Start-up Costs

  • Limited capital is a reality for many startups and small businesses. The costs of setting up and operating a corporation involves higher set-up fees and special forms. It’s also not uncommon for a lawyer to be involved in forming a corporation

Encourages Self-employment

  • Sole proprietorship form of business organization leads to creation of employment opportunities for people.
  • Not only is the owner self-employed, sometimes he also creates job opportunities for others.

In case you need any further information Contact us at 9818092002 Email : info@companyindia.co.in In case you need any further information Form your Sole proprietorship in Just 3 days time Contact us at 9818092002 Email : info@companyindia.co.in For more query or information or document requirement

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