Proprietorship Registration In Punjab
A business that is run by a single person is called a Proprietary business in Punjab and the owner of this business is called the proprietor. Proprietorships in Punjab are the most common as one can start the business with minimum regulatory compliances. The owner of the sole proprietorship business typically signs the contracts in his or her name as the sole proprietorship business and the proprietor are considered to be the same under the law. The decision-making and management of the business are in the hands of a single person.
What are the documents required to register a proprietorship in Punjab?
The entire process of registering for a Proprietorship in Punjab can be completed online. You will just have to submit the documents online:
- Identity proof- Aadhar and PAN Card.
- Address Proof
- Latest Bank Statement
- Passport Size photographs
IndiaFilings can help you register for a Proprietorship in Punjab in 5-7 working days.
Reasons why sole proprietorship registration is preferred in Punjab?
There are many reasons why proprietorships in Punjab are preferred. Here are some of the top reasons, why people prefer registering a proprietor.
Easy formation: All the shops in our vicinity carrying out small business are the sole proprietors. The proprietorships are not involved in any complexities and they can be easily handled by a single person. They also do not require any registration under law. They only need the registrations or the licenses that are specific to the nature of the business.
Lesser investment: Proprietorships in Punjab can be started with a very minimal amount of investment. It is a great opportunity for those who want to set up a business with low funds as there is no requirement for minimum capital.
Fewer Compliances: Since proprietorships are not governed under any law the legal compliances are minimal. There is no Incorporation Certificate or Registration Certificate. These compliances are the ones that come under the registrations and the license that is taken by the proprietor.
Lower taxes: As sole proprietorship and the proprietors are considered to be one, no separate tax is required to be paid. Here the sole proprietors are required to file the returns normally and only show the profits that are earned in the business. Proprietorships are not required to file the returns differently. The tax is calculated on the income slab rates that apply to individuals, other taxes will depend on the nature of the business.
Decision making is easy: As the sole proprietorships are managed and operated by a single person there is no scope of conflict of ideas or decisions. He can do whatever he or she thinks is best for the business.
No specific audit requirement: The sole proprietorships are not required to get the accounts audited each financial year under any specific law. The audit will be dependant on the nature of the business and the threshold turnover limits for conducting the audit.
Information is not made public: Unlike the Companies, LLPs where the financial statements and the audit reports are made public by the MCA. As sole proprietors are not governed under any law the information is not public.
To know more about the sole proprietorships in Punjab talk to our experts at IndiaFilings.