It is vital to know important things before incorporating a business . One such vital aspect is features of a Company, namely:
- Simplest form of carrying business opted for small businesses due to its ease of setup and nominal cost.
- Easy and simplified registration and incorporation formalities.
- The management, control and ownership vests in a single person.
- It has no separate legal entity as that of an incorporated business. Its legal entity is same as that of a person who owns it.
- It is not transferable or heritable.
- The liability incurred by the owner is a personal liability. Debts of the proprietorship become the debts of the owner.
- The profits accrued by the proprietorship are the profits accrued by the owner. Thus, it gives a pass-through tax advantage.
- It does not have perpetual existence or succession.