Indirect Tax

Indirect Tax

Proprietorship Firm is common & most cost effective procedure to start business in India. A sole proprietor become single owner of business and it is easy to start and close. In this business legally has no separate existence from its owner. Income and losses are taxed on the individual’s personal income tax return.
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss, etc. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost.
The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor’s.
A sole proprietor may use a trade name or business name other than his, her, or its legal name. They may have to legally trademark their business name if it differs from their own legal name, the process varying depending upon country of residence.