Home / Appointment Letter
What is Appointment Letter ?

An appointment letter or employment letter is a formal letter provided in writing to a candidate joining for employment. Appointment letters are usually provided after offer letter on the first day of the candidate starting work. The appointment letter describes in length the position offered, salary, benefits, confidentiality policy, work policy, starting date, and important information about the employment. The candidate usually would receive the appointment letter on the first day after beginning employment and would return a signed copy back to the employer indicating acceptance of the appointment letter.

How to Create an Appointment Letter?
  • Appointment letters are printed on letterhead of the employer and signed by the Management or HR Manager authorized to hire the candidate.
  • In case the candidate accepts the position, the candidate must sign a copy of the letter and return it to the employer to indicate acceptance of employment, after which a contractual obligation to be fulfilled by both parties has come into existence and become binding.
When Appointment Letter is Provided?
  • Easy to Start and Close- Registration is quite simple. They do not involve any complexities and can be handled by a single person in a comfortable manner.
  • Minimal Compliance- Since Sole Proprietorships are not governed by any specific law, the legal compliances are minimal. These sorts of firms are acknowledged only because they are registered with the government and for the taxes.
  • Low Cost and Taxes- A Proprietorship with less than Rs. 2 lakhs of income is not required to pay any income tax, as Proprietorships are taxed as the individual owing the business. However, once, income of the business exceeds Rs. 10 lakhs per annum, there are no major advantages for a Proprietorship in terms of taxation.
  • Business Name- Since the name of a Proprietorship is not registered, a Proprietorship can choose to have any name - as long as it does not infringe on a registered trademark.
    ...No Content