- Owned, Managed, and Controlled by one person
- It is mostly used by small businesses and operating in unrecognized sectors.
- Very easy and fastest way to start a business with a lesser compliance requirement.
- It is not a separate legal entity, hence it doesn’t enjoy the benefits of independent existence, limited liability and separate legal entity.
- There is no rule or structure to get registered Proprietorship Firm unlike Company, LLP, etc..
Benefits of a Proprietorship Firm
- Minimum tax exemption limit of Income Tax Department can be enjoyed.
- Income Tax is applicable to slab rate and not on flat rate.
- It is one of the easiest form of business to incorporate and manage.
- No Statutory Audit Report of accounts is required to be submitted with RoC
- It can have any name except the name registered with Intellectual Property authorities.
- There is no requirement of filing any annual return of its operations during the year unlike Company, LLP