Proprietorship Firm registration is undertaken by entrepreneurs who want to solely manage their commercial activities. A Proprietorship or Sole- Proprietorship Firm can be set up almost instantly and does not require registration formalities. Therefore, it is more well received in India, and more specifically, in the trading community. However, it does not share the advantages enjoyed by other business entities. The major drawback of setting up a Sole-Proprietor business is that it poses unlimited liability on the owner.
Advantages of Setting Up a Proprietorship Firm Registration :
A sole proprietorship is not a distinct entity from that of the proprietor. The structure does not pay the tax. However, the proper reports his losses and profits on his income tax return.
Personal liability is one of the major setbacks of sole-proprietorship. This implies that in the case of a debt occurred; the collector has the power to take over your personal assets.