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Benefits of

Borrowing Capacity:

A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured, accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to the company rather than partnership firms or proprietary concerns

Frequently Asked Questions (FAQs)


A sole proprietorship is an unincorporated business that is owned by one person.
A sole proprietorship is the easiest and least expensive way to start the business. It provides the business owner (Proprietor) with the freedom and autonomy of complete oversight and control of the business. The business and the person who owns it are considered to be one entity. As a result, the sole proprietor owns all the assets and is entitled to all the profits.
The proprietor is the sole owner of Business hence the proprietor bears unlimited liability.
The easiest way to start a business is Proprietorship Concern.
The Proprietor must be an Indian citizen and a Resident of India.
Proprietorship firms do not have a Certificate of Incorporation.
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor must provide two forms of registration for the Proprietorship firm along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, Shop & Establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.