Proprietorship

• One man ownership and control
• No much legal formalities
• Own Capital contribution
• Unlimited liability
• No separate entity for the business and personal
• Non Profit sharing
• Complete secrecy

• Easiest and least expensive form of ownership to organize
• Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit.
• Sole proprietors receive all income generated by the business to keep or plough back to earn.
• Profits from the business flow-through directly to the owner's personal tax return.
• The business is easy to dissolve, if desired

• Sole proprietors have unlimited liability and are legally responsible for all debtagainst the business. Their business and personal assets are at risk according to the risk of the business.
• Has a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
• May have a hard time attracting high-caliber employees, or those that are motivated by the opportunity to own a part of the business.

A sole proprietorship form of business organization is suitable to the following types of business houses where:

• The capital requirement is very small.
• The goods are of artistic and personal requirements
• There is transfer of personal services
• Computer services
• Business necessitating spirit of co-operation

A sole proprietorship form of business organization is suitable to the following types of business houses where:

• Decide on a business name for your sole proprietorship.
• Search availability of your sole proprietorship's chosen business name, and for similarity to existing names
• Register your sole proprietorship's name
• Application for PAN/Bank Account