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Sole Proprietorship

Proprietorship might just be the most flexible form of business anyone can own. All you got to do is Just Get Set Go !
Prices start at
INR 2500 /- only

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    Why Choose Sole Proprietorship Registration in Tamilnadu?

    Proprietorship is one of the most widely practised Business formats in Tamil Nadu. Here the business is as good as the owner, and there is no distinction between the two. This means all business profits and assets belong to the owner, however, it also means all losses and liabilities of the business have to be borne by the owner. The horizons open to a sole proprietor are unlimited since he /she can quickly adapt to market changes and dynamic business strategies

    Documents Required for Seamless Sole Proprietorship Registration In TamilNadu

    Here are a few documents that would come in handy when you start your sole proprietorship in Tamil Nadu

    • Proprietor’s PAN Card, Aadhaar Card, and Address Proof
    • Business Name Approval Proof (as applicable for eg: if the proposed name has a registered trademark etc)
    • Shop and Establishment Act License (if applicable to be obtained from relevant local authority)
    • GST Registration Certificate (applicable if turnover limits are exceeded)

    FAQs On Sole Proprietorship Registration In TamilNadu

    Get answers to all your queries

    - GST registration is mandatory only if annual turnover exceeds the threshold limit set GST Department, to know more get in touch with our team at Clearbiz

    - The cost is minimal, compared to other business formats like LLP or private limited company, book your free call today to get a quote

    - Yes, Clearbiz is here to guide you through the process

    - Typically, the entire process would be over in a week

    - While there are no mandatory registrations, There might be some local authority approvals necessary, let's discuss more on a call

    - The proprietor’s income is taxed normal income tax rate for individuals

    Advantages of Registering Your Sole Proprietorship in Tamilnadu

    Proprietorship is popular because it is

    1. A very simple and straightforward business structure 
    2. The single owner has full control and sole decision-making power unlike in a private limited company or LLP
    3. Statutory compliance is very minimal. The only mandatory compliance would be filing of Income Tax Returns by the owner within the stipulated timelines
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    Process of Sole Proprietorship Registration in TamilNadu

    There is no clear-cut process for starting a proprietorship business because there are no specific legislations overseeing such business. But in general, for a proprietary concern in Tamil Nadu, the following requirements are to be met

    1. The proprietor must have a PAN Card. Today almost all financial transactions require furnishing of a PAN Card
    2. Find a unique Business Name. The business name helps in setting the identity of your Brand. A good and catchy business name is one of the first steps for building brand value
    3. License Under Shop and Establishment Act: from the concerned local authority of Tamil Nadu. Approvals and permissions from the local authority are mandatory for smooth operations of any business
    4. GST Registration: If turnover thresholds are exceeded registrations from Goods and Services Act -Tamil Nadu must be obtained . Presently Rs 40,00,000 is the turnover limit for business involved in trading of Goods , whereas for services its Rs 20,00,000
    5. Open a Bank Account: Set up a dedicated Current account for the business. This ensures all business transactions are rightly captured and there is no mix up between personal and business transactions 

     Understanding the Limitations of a Sole Proprietorship

    Though being your boss offers several advantages, it has its share of cons too. Let’s have a look at the downside of running a proprietorship

    1. Unlimited Liability: The owner’s personal property would be at risk if the business runs into losses or creditors are not promptly paid off
    2. Access to Capital: Being a single owner, scaling operations and getting hands-on investments might be challenging in the initial stages
    3. Continuity: Business operations may be affected if the  owner passes or there is no proper succession planning
    4. Moreover there is no partner/ director to share responsibility of business decisions / business risks
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    Conclusion

    Starting your business venture is gratifying if the right things are focused on. Like any business structure sole proprietorships too have their share of pros and cons. You must analyze the needs of the business enterprise and arrive at a decision best suited for our business. 

      We at Clearbiz would love to discuss further on various business models and ideas that can help you set up a business in Tamil Nadu. Feel free to reach out to us at info@clearbiz.in