Corporate and Business Law Presentation

Presented by :-

Presented to’

Miss Ambrin Tariq

Objectives / ContentsBusiness Entities Sole ProprietorshipDefinitionAdvantages Disadvantages Registration process of Sole Proprietorship

Types of Business EntitiesSole ProprietorshipPartnershipCorporation

•Sole proprietorship

•Partnership

•Corporation

Sole Proprietorship DefinedA Sole Proprietorship is the ownership of

a business by one person, who receives all of the profit, but is responsible for all debts and obligations as well.

It is the most common business format in the United States.

Approximately 76 percent of all businesses in the U.S. are sole proprietorships.

Sole Proprietorship

9

Characteristics of Proprietorships

Most sole proprietorships earn modest incomes. Many proprietors run their businesses part-time.

The owner of a sole proprietorship: receives the profits,incurs any losses, andis liable for the debts of the business.

Sole Proprietorship

Formation Of the four forms of ownership, the sole

proprietorship is by far the easiest to form.

The government exercises very little control over the establishment of new sole proprietorships.

Start-up can be immediate and simple.

You may need to obtain licenses or permits for your particular type of business.

Operation Sole proprietors make all the decisions

regarding the operation of the business.

The assets of sole proprietors are not considered legally separate from the assets of the business.

Owners of sole proprietorships report business income and expenses on their personal income tax returns.

Sole Proprietorship

13

AdvantagesSole proprietorship is easy and inexpensive to create.

The owner has complete authority over all business activities.

It is the least regulated form of business ownership.

The business pays no taxes; income is taxed at thepersonal rate of the owner.

Sole Proprietorship

14

DisadvantagesThe owner has unlimited liability.

Raising capital is more difficult.

The business is totally reliant on the skills and abilities of the owner.

The death of owner dissolves the business unless there is a will to the contrary.

Process of register a Sole Proprietorship concern.This is quite simple, however, instead of doing it yourself, get a tax consultant or lawyer to do it for you, it is not expensive. The following steps need to be taken: Decide on and select a Business Name; Print Letter Heads, envelopes and your

business/visiting card; Write an Account Opening Request to

your Bank, stating that this is your business and you are the sole proprietor of it;

Open an account at a local bank’s branch close to you;

Next request the bank to issue a letter stating that this is your account and business;

Submit the bank certificate and your application with the Tax Authority i.e. the FBR (Federal Board of Revenue) Federal Board of Revenue (FBR) formerly known as the CBR Central Board of Revenue;

If you are on a job, you already have a NTN (National Tax Number) – the same NTN will be used for your Sole Proprietorship status.

Once the status is added, you are a registered legal entity.

Some Examples of Sole Proprietorship

By DefaultIf you provide goods and services for consumers or businesses but do not form a partnership, limited liability company or corporation, you are automatically considered a sole proprietorship. As a sole proprietor, you are required to declare all your income and pay self-employment taxes, either quarterly or on an annual basis, when you file your personal return.

Small Shops and Boutiques

When you enter a neighborhood store such as the local flower shop, pizza and or hardware store, you are generally greeted by the same one or two people. Most likely, the person who greets you is the owner or the owner spouse.

These small businesses are most likely sole proprietorships if the owner did not declare another business structure, such as a limited liability company.

Common ExampleLaiba’s Collection (2001)

Sole Proprietor BusinessOwner Miss Naheed AkhtarInitial investment 2000 rupeesCurrently has assets of worths 0.3 million (2013)Current outlet Hayatabad Phase 7Contact 091-5863429Supported by WBDC and SMEDA

Mission Statement

Laibas Collection mission is to offer quality clothes in an assortment of sizes and styles to accommodate all varying body styles and

shapes to satisfy their customers with all aspects of their needs and also by providing

quality tailoring on spot

Vision Statement

To capture the local market and to compete in the competitive

environment

Nature Of The BusinessThe business deals in ladies

garments◦Bridal wears (ready made & on

order)◦Casual wears (ready made & on

order)◦Small kurtas for baby girls◦Bed sheets and complete bed sheets

(on Order)◦Tailoring facility on spot

Role Of The Business

To promote the labor present in the villages near D.I.Khan (kaneri village)

To provide them with employment opportunities

To provide customers with better services

Thank You And

God Bless