Closure Of MSME
Your business might be your kingdom, Not built in one day and same go while closing a proprietorship concern. 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. Understand the procedure to close your single owned business.Kanakkiyal.com will help you to close the Proprietorship Firm.
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Common reasons for the closure of sole proprietorship:
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.
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.
The proprietor has taken up a job:-
Generally proprietorship is started in a hush, generally, it is abandoned as soon as proprietor gets a more lucrative option. However seldom they forget to close it properly and hence invite department’s notices in the future.
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