Make a Proprietary Concern

Proprietary Concern is a form of Business Enterprise which is owned by a single person. This is very common form of business in India.

Main characteristics of this form are as under:-

  • Easy to establish

  • Single owner to provide capital

  • Single owner with complete control of the business

  • Proprietary concern has unlimited liability

  • The business comes to close if the owner dies

  • Capital is limited due to one person’s ownership

To establish a proprietary concern, the person who wants to establish business has to do the following:-

  1. Choose a name of business and identify its address.

  2. Identify the nature of business / products and fix the initial capital contribution

  3. Obtain PAN Card

  4. Open a bank account in the name of firm

  5. Obtain approvals from local authorities under Shops and Commercial Establishment Act

  6. Obtain Service Tax

  7. Obtain Trade Tax

  8. Vat Registration

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