Proprietorship business- Features, advantages and disadvantages
Proprietorship business is the simplest form of business. It can be started by a single individual. There are very few legal formalities for setting up a proprietorship business when compared to any other form of business. Profits and losses of the business is beared by the proprietor alone. Taxation for this type of business is simple since only individual tax rates are payable as income tax. There is no separate income tax for the business. There is no separate legal entity for a proprietorship business distinct from the proprietor. The proprietorship business have an unilimited liability and all the debts and liabilities are borne by the proprietor himself. Registrations such as VAT/CST/GST etc. are to be taken according to the nature of the business. A proprietorship business can be started with low investment and is ideal for small scale businesses. Advantages of a proprietorship business 1) Proprietor ...