NKG Experts help our clients navigate through the tough, complex and often changing regulatory requirements in India. Having been behind thousands of registrations over years, Team NKG assists its clients in overcoming various challenges by systematically following a transparent , predictable and efficient regulatory strategy.
A sole proprietorship is a type of business entity owned and run by one individual. There is no legal distinction between the owner and the business, so the owner has unlimited personal liability for any debts or obligations incurred by the business. Sole proprietors retain complete control and keep all profits, but must also fund all losses personally. It is the simplest and most common structure for small or new businesses with one owner.
A sole proprietorship is the simplest and most common structure for small businesses or freelancers with just one owner. It is not considered a separate legal entity like a corporation, so there is no distinction between the business and the individual who owns it. The sole proprietor retains complete control over the company and is entitled to all the profits, but also holds unlimited personal liability for the debts and obligations.
This means their personal assets are at risk if the business cannot pay back loans, gets sued, or becomes bankrupt. Since no formal business registration is required, sole proprietors can get up and running quickly with minimal startup costs. However, they may find it harder to raise capital and establish business credit. Overall, sole proprietorships offer low barriers to entry but high economic risk for an individual owner without much separation between business and personal finances.
The individual owner of a business that is not legally separated from the owner. The proprietor has unlimited liability for all debts and obligations.
The sole proprietor is personally responsible for all financial and legal liabilities and obligations of the business. Their personal assets are at risk.
Business profits are combined with the sole proprietor’s personal income and taxed only once at the individual level rather than having corporate taxes.
A trade name or assumed name that a sole proprietor can register to conduct business under a designation other than their legal first and last name.
A tax paid by sole proprietors to fund social security and Medicare since their business income isn’t subject to payroll taxes.
A sole proprietor’s business and personal assets are one and the same. Personal assets like cash, real estate, investments or inventory can be seized to pay business debts.
Since no formal business registration is required, dissolution of a sole proprietorship happens when the owner decides to cease operations. No formal filing is required.
The documents required for sole proprietorship in India are minimal, making it a relatively straightforward process compared to other business forms. However, you might need additional licenses or registrations depending on your specific business type and location.
Here’s a breakdown of the essentials:
Aadhaar card: Serves as identity and address proof for the proprietor.
PAN card: Essential for tax purposes and financial transactions.
Bank account: A separate business account is strongly recommended, although not mandatory.
Registration Certificate of your startup: This proves your company’s legal existence.
UDYAM registration: Formerly Udyog Aadhaar Memorandum (UAM), this recognizes your business as a Micro, Small, or Medium Enterprise (MSME) and offers various benefits.
Shops and Establishment Act License: Required in most states for shops and commercial establishments.
GST Registration: Mandatory if your annual turnover exceeds ₹40 lakhs for goods or ₹20 lakhs for services.
Additional documents:
So in essence, any adult who is prepared to handle both the business and tax side of being a sole business owner can become a sole proprietor quickly and easily. The barrier to entry is very low.
Here are some of the main advantages of a sole proprietorship business structure:
For the past two decades, NKG has been helping more than five thousand clients worldwide, across the healthcare spectrum, to get their products registered. The dedicated regulatory team of NKG has more than ten years of experience in helping clients cross the hurdles they face while marketing their products to sell or distribute in India.
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3.Team will help you understand your product’s regulatory requirements.
4.Team will help you to prepare the documents to comply with regulations.
5.The product marketed successfully.
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NKG keeps in Close communications with various Trade Commissions, Business Chambers, embassies of many countries on various existing & new Rules & Regulations of government of India
NKG has a Dedicated and Efficient team of experienced regulatory professionals who have Registered more than 2000 brands until now who can help you Plan your regulatory needs and smoothen the process for Regulatory approvals. Strategically located in New Delhi, the “regulatory “ capital of India, NKG makes a head start by following its unique time tested “Step-by- Step “ process that puts a lot of method in between the madness.
