Close Proprietorship Firm | Proprietorship Firm Closure
There may be several reasons for the Closing of Proprietorship Firm. In India, more than 60% of Proprietorship firm not succeeded business due to adverse market situations. Our dedicated team will help you with all the documentation. We extend our support from documentation to preparation and filing.
There is no law which requires a proprietorship to be registered like company and LLP. Sole proprietors do not have to consult with anyone else before deciding to call it quits. The Proprietorship firm can be easily closed by cancelling all your licenses and business registration so that in future, Proprietor is not liable to file any returns and compliance. Before closing the firm, Proprietor needs to terminate all agreement with vendors and clients to avoid any future consequences and liability. If you are thinking about closing your sole proprietorship firm, our dedicated team will help you.
Did not commence your business or no business at all now ? Get your Proprietorship Firm closed and avoid any legal hassles.
It usually takes 7 to 10 working days.
- Closure of Proprietorship Firm
- Surrender of TAN
- Surrender of GST
- Surrender any other Licenses
- Firm with no operations
- Firm without any third party transactions
- Firm with no employees
- Firm with no registration under GST, VAT and other tax departments
- Purchase of Plan
- Expert Assigned
- Preparation of name removal Documents
- Filing with Department
Name, Contact Number and Email Id
Self Attested PAN, Aadhar & Passport size photo
NOC from commercial departments
Letter of account closure from bank
Previous Year's Audited Financials & Tax Reports
Common Reasons for Closure of Proprietorship Firm
Legal closure of business in India is an essential step to be taken to avoid future complications and legal arbitrations, which otherwise be faced if the business is closed without notifying government authorities.
Some common reasons for the closure of sole proprietorship business can be :
Bankruptcy/Death of the Sole Proprietor: Business can be put to an end on bankruptcy or death of the sole proprietor where it cannot be transferred to any other person or the business could not pay off its existing debts.
Legal orders issued against business: Business shall have to be closed on receipt of legal orders from legal authorities if they are of the view that business is illegal or unethical.
Failures or limited resources: For a sole proprietor, there is always a limited source for investment and finance. Holding business single-handedly, a proprietor has to manage his business with only a few sources he holds, failures in business due to limited resources can also lead to the closure of sole proprietorship.
Voluntary dissolution: With challenges faced by a sole proprietor, he may opt to close down his business permanently or on the advisory of a legal expert stating for no future prospects the business to grow.
Steps to Close the Proprietorship Firm
Steps to Close the Proprietorship Firm
Why Close/Wind Up Sole Proprietorship Legally?
- Legal Protection: if your proprietorship is closed on a positive note but without the approval of the appropriate State, central or concerned authorities, the business shall be under the obligation for compliances or liabilities which can arise in the future. Thus, receiving government approval and approval from concerned authorities eliminates business responsibilities from legal suits against business or proprietor.
- Easy Final Settlement: Going for dissolution of sole proprietorship through legal agreements with all creditors employees and parties associated with a business will help in better settlement of business obligations.
- Eliminate unforeseen liabilities: With the receipt of the certificate from a state or concerned authority for closure of business, the business will no more be called for any future liability.