Proprietorship Firm Registration
Proprietorship Firm Registration is the registration of company by a sole person or an individual. Proprietorship means where the individual or family owns the firm. Sole Proprietorship Firm Registration is mandatory for the authorized person to authorize a legal document and also register a firm running by an individual. A business which is owned by individuals is known as proprietorship and registration of that business is known as proprietorship registration. For the registration of proprietorship firm user needs to have all the documents for the registration of firm.
Advantages of Proprietorship Firm
- Owned by Individuals and firm.
- Registration is mandatory for Proprietorship Company.
- Easy way to register a firm.
- After Successful registration Owner need to pay taxes like Income Tax, VAT and etc.
- Single promoters as we all know proprietorship is for sole person.
How to Surrender Proprietorship Firm
Proprietorship firm Surrender is the process of Cancellation of Proprietor Firm Registration. Surrender of Proprietorship firm done due to various reasons.
For the surrender of Proprietorship firm registration user needs to be log into the site Of GST and MSME (MIcro Small Medium Enterprises). When the registered user is login on their portal he needs to fill all the required fields and submit all the documents for the cancellation of firm.
- Registered person can surrender the Proprietorship due to close of business.
- Due to the loss in business.
- Due to Fraud or any kind of misstatement.
- Business should not be commenced on the declared place.
- Surrender should be done due to the tax.
Reason for the Cancellation of Proprietorship firm Registration
There are some valid reasons for the cancellation or surrender of Proprietorship:
- A Firm has not furnished returns or pay tax for the 3 consecutive tax periods.
- A registered person has not furnished the tax due to loss in Business.
- The registered person has been found in any kind of fraud or misstatement.
- Proprietorship registration should be cancelled because of not the commencement of the business or not liable to pay income tax.
- Does not conduct any business from the date of declared place of business.
- Proprietorship firm should be cancelled due to death of sole proprietor.
When a Sole Proprietor Dies, the business usually terminates, since a Sole Proprietorship is so closely tied to its owner. However, if the sole proprietor carefully plans his will, his business can survive in some form after his death.
Procedure of Cancellation Proprietorship
Proprietorship Registration surrender is an easy and step by step process. It is not necessary that the owner of any firm will fill the Surrender of the Firm, sometime it is happen due to some miss-happening, lack of money, fraud. The authorized officer will check for the reason behind the Surrender of Proprietorship. And then officer will verify the application form and the reason behind the surrender of proprietorship.
Proprietorship Surrender fees
In India there are so many organization & firm who help in Proprietorship firm registration and surrender. In the procedure of registration and cancellation of Proprietorship firm many organization helps the user and charge some nominal fees. Charges of fees depends the packages.
