What is Sole proprietorship?
A Sole proprietorship is a business which is owned, managed and controlled by a single person. It is ideal for small traders and merchants.
- A Sole Proprietorship is inexpensive as compared to a One Person Company (OPC) and has minimal compliance requirements.
- Minimal Compliance: Sole Proprietorships are only recognized via their government and tax registrations, so the extent of their compliance is limited to the annual filing of their service, professional or sales taxes..
- Owner has the control over all business decisions. The owner can also fully transfer the sole proprietorship at any time as they deem necessary.
- What is the minimum capital requirement for the registration of sole proprietorship ?
No minimum capital has been required.
- For which services or business category, sole proprietor firm can be opted?
Generally, local vendors doing small scale business opt for sole proprietor firm. For example: general provision store, grocer, medical shops, bakery shops, restaurant etc.
- Does a sole proprietor firm have continuous existence?
No, the existence of a sole proprietorship business is dependent on the life of the proprietor.
- What are the documents required for the sole propriety registration?
- PAN Card copy of proprietor
- Electricity/Water bill (Business Place).
- Copy of Aadhaar Card/Voter identity card.
- How long does it take to establish a business with Sole Proprietorship?
It will not take more than a day to start up a business as Sole Proprietorship.
To apply For Sole Proprietorship, Click here
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