Nidhi Company is a type of Non-Banking Financial Company (NBFC). It is formed to borrow and lend money to its members. It inculcates the habit of saving among its members and works on the principle of mutual benefit. Nidhi Company isn’t required to receive the license from Reserve Bank of India (RBI) hence it is easy to form. It is registered as a public company and should have “Nidhi Limited” as the last words of its name.
The advantages of operating as a sole proprietor are that you don’t have to do anything to establish your business. It automatically exists as soon as you start to sell something. You also don’t have a second set of business tax forms to complete; a Schedule C and form 1040 are all the IRS requires each year, plus the SE for your self-employment taxes. Without that extra taxation, sole proprietorships have the lowest tax rates. And because you are the sole owner, you have complete control over your business and how it is run.
On the flip side, the simplicity of operating a sole proprietorship is also a liability. Because you are your business, if your company is sued, you are personally responsible for any judgment. Such a loss could be catastrophic to your financial health. Because your business is built around you, it is also harder to raise money from investors or to secure a business loan; you may be able to qualify for a personal loan that you can then use for business purposes but, once again, you are personally liable if the business fails. Documents required for registration of Proprietorship Firm – Self-attested copy of PAN Card of proprietor – Self- attested copy of Aadhar Card of proprietor – Details of the saving or current bank account
