Sole Proprietorship

Sole Proprietorship Registration

When a business is owned and governed by one person it is called a sole proprietorship company. This type of business can be started in 7-10 days and hence makes it one of the most popular kinds of business to begin in the unsystematic sector, specifically among merchants and small traders. For a sole proprietorship business, registrations are not required as they are identified by alternate registrations such as GST registrations. However, it’s liability is unlimited and it also doesn’t have a continuous existence. A sole proprietorship is a type of business entity.

Benefits of Sole Proprietorship:

► No annual compliance intimation to any authority

► No certificate or no renewal of any license

► Tax benefits and rebates

► It is very easy to start without intimation to any authority for running their business except those where there is a mandatory requirement of license for the products but not for the status of the firm

► Independent existence means that it has no legal status which means the burden is limited up to own

► Easy access to opening current bank accounts

► Saving of money due to lesser compliance as required in other cases

► Liberty from maintaining accounting records up to a limit

► It is very easy to convert into another legal identity status at a later stage

► There is no separation between Sole Proprietorship and Sole Proprietor

Documents Required for Sole Proprietorship:

► Identity Proofs - PAN Card

► Address Proofs – Aadhar card

► Office Address Proofs - Rent agreement or sale deed with Electricity Bill

Checklist for a Sole Proprietorship:

► GST Certificate

► Shop & Establishment Certificate

► Import export code issued by DGFT

► FSSAI License for food business operator

► MSME Registration

► File Income Tax Return in the name of the proprietor where firm’s income is reflected