1. Closing Down a Proprietorship
Shantanu
4th Yr.
NLU, Odisha

2. Proprietorship
• Also known as sole proprietorship.
• Only one owner.
• Simplest form of business organization.
• Proprietorship is not a separate legal entity.

3. Opening of a Proprietorship (contd…)
• A sole proprietorship can be started without
taking any burdens of the legal provisions.
• Registration not necessary.
• Depending upon the rules of the local
administration, you may be required to obtain
requisite licences.

4. Opening of a Proprietorhsip
• Search the state laws to find out the kinds of
licenses you will need to carry on the kind of
proprietorship you desire.
• Fill the forms cautiously.
• Deposit required fees.
• Whole process may take 30 to 40 days.

5. Closing of a Proprietorship (contd…)
• Two possible reasons for its closing:
(i) wish of proprietor; or
(ii) death of proprietor.
• In case of death of proprietor, the business
will automatically close and cannot be carried
forward.

6. Closing of a Proprietorship
• Generally, no need to go through legal
procedures.
• If the business has licenses, then you need to
surrender them.
• Surrender according to State laws.
• It is advisable to clear all debts before closing
of business to avoid future litigations.

7. Bank Accounts
• On the opening of a proprietorship, you
should have a bank account.
• While closing, you will need to close the
account.
• Any credit taken from the bank by way of
overdrawing or otherwise should also be set
off.

8. Thank You