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Salient Feature of Sole Proprietorship Firms

Posted By admin on December 25, 2013 No Comments

We help to form Following Entities in India for last 22 year-download-3

  • Sole Prop Firm
  • Partnership Firm
  • Private Limited Company
  • Public Limited Company
  • Section 8 Company
  • NGO/ NPO Formation
  • Subsidiary Company Formation
  • Branch office in India


Ease of formation-

  • This form of organization can be easily formed
  • It does not involve any cumbersome legal formalities.
  • Registration of the firm is not mandatory.
  • The owner sometimes required to obtain a license pertaining to the line of business from local government agency.

Capital Requirement

  • The capital required by a sole proprietorship form of business organization is totally arranged by the sole proprietor.
  • Proprietor can arrange from his personal resources or by borrowing from relatives, banks or other financial institutions.

Management & Control-

  • The owner has complete control on all the issues related to the business.
  • He can take all the decisions related to any aspect of running the organization.
  • The ultimate control rests vest in the hands of properitor.

Legal status-

  • In law, the sole trader and his business are considered as single entity
  • All the assets and liabilities of the business are the personal assets and liabilities of the proprietor.
  • The owner and the business exist together. Sole trader and business are considered as one in the eyes of Paw.

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 formation or document requirement

Unlimited Liability-

  • The liability of the sole proprietor is unlimited.
  • In case of loss the business assets along with the personal properties of the proprietor shall be used to pay the business liabilities.

Distribution of Profits/ loss-

  • The owner is responsible for any profit generated or loss incurred by the organization.
  • The owner has unlimited liability and it extends beyond his capital investment in business.

Lack of Continuity-

  • The organization exists only so long as the proprietor is alive. In the event of accident, illness or death of the proprietor, the business comes to an end.

Risk-

  • The proprietor himself bears all the risks. No body else has any stake in the business.

In case you need any further information

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

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