Hello everyone.  How often have you considered starting a business and did not know how?  Do you know the best type of business suited to you?  Here, we are now bringing in a series of blogs to help all business and services to know ways of starting a business, further Incorporation’s and Compliance’s. Blogs will be self-explanatory and will be in simple and easy to understand language without mixing sections for everyone to understand and move on…

Business Incorporation Series:
1) Proprietorship Registration:

In our first of the series, we begin with starting a business as a proprietorship.  What is a proprietorship?  Simply put, the proprietorship registration means it is one person show.  It is a type of business entity that is owned and run by only one person who will be called a Sole Proprietor/Owner. In most of the states of India, the proprietorship registration is done with Shops & Establishment Act and in some states under Professional Tax Act.

A proprietorship can be started in any trade name or in the name of the individual starting business.  There is no separate PAN number required for proprietorship as the individual’s (business owner) PAN number is the PAN number of the trade name also.  The following are the documents required consolidated keeping in mind all States.
• PAN card copy.
• Rental agreement of the business place.
• Photographs of the individual starting business.
• Aadhar card/Passport/Driving licence for address proof.

The applications are processed in a maximum of three to five days and a certificate is granted.  This document is valid for opening a bank account.

Point to be borne in mind:
• The proprietorship is an unlimited liability concept.  That means in the eventuality of business losses, the proprietor’s personal assets are also taken into account to repay the liability in case the business cannot repay on its own.

Conclusion:  So finally in our opinion, a proprietorship is the easiest form of business to start and is a good for family-owned businesses and small business as well as traditional business like hotels and restaurants, textiles and Man Friday services like plumbing, electrical work etc.

We hope it is now clear and makes it easy for you to start a proprietorship form of business.  Our next blog will be on how to start a partnership.  Watch this space….