Salient Feature of Sole Proprietorship Firms

Back to Home

Posted By admin on December 25, 2013 No Comments

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

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

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