Proprietorship Firm | Proprietorship Firm Registration

The definition of ‘Company’ signifies any enterprise which is formed under the Companies Act, 2013. The procedure of registration of a company in India relies upon the type of the company.

When a business or firm is held and governed by one individual it is referred to as a sole proprietorship firm or company. In this Proprietorship firm form of business a single individual takes care of and controls the total operation and functioning of the business. The proprietor of the business is the only individual to enjoy the profit of the business and he has to bear the losses.

There is no specific law that directs the sole proprietorship firm. Proprietors of such corporations have unlimited business liability. This comprises that the proprietor's personal assets shall be attached in order to fulfill business liability claims. It is not possible in order to transfer the ownership of a Proprietorship firm from one individual to another.