Proprietorship Firm Registration

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Proprietorship firm registration in Jharkhand

A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work ‘alone’—it is possible for the sole trader to employ other people.

Required documents for sole Proprietorship Registration.

  • PAN Card of the sole Proprietor.
  • ID Proof and Address Proof of the sole Proprietor as Adhar Card, Driving License or passport etc.
  • Rent Agreement, No Objection Certification or Electricity bills of the property where you want to register the business.
  • If Proprietor has owned property the it needs sales deed copy or electricity bills.
  • Bank Statement copy or cancelled cheque copy.
  • Passport Size Photograph

Procedure for Register Sole Proprietorship Firm

  • Prepare documents required for sole Proprietorship Registration.
  • Apply for MSME + CA Certification or GST Registration as per your business need.
  • Get Certification from the Government after the approval.
  • Apply for a current bank account in any bank with your complete documentation

Limitations and disadvantages  Sole Proprietorship:

There are some disadvantages of sole proprietorship firm:

  • Liability Is Unlimited
  • Difficult to Raise Capital
  • Lenders Are More Wary
  • Owner Controls Everything
  • Liquidation of Business

FAQS

1. Question: Are you personally liable for your sole proprietorship?

Yes, you are personally liable for your sole proprietorship. While corporations, LLCs and limited liability partnerships gain the benefit of limited liability, sole proprietors generally do not qualify for such protections.

2. Question: Do sole proprietorships need to be registered like LLCs or corporations?

If you own a sole proprietorship, generally you shouldn’t have to go through the same registration hoops as an LLC, limited partnership or corporation. Instead, you can usually just declare your intention to operate as a sole proprietorship.

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