The simplest and quickest way to start your own business is to form and register a Sole Proprietorship Firm. You can shape your idea into a reality and live your dream by starting a business in the form of Sole Proprietorship with no government interference and with minimum compliance procedure and cost in minimum possible time. It is a one-man organization where a single person owns, controls, and manages the business.
Benefits of Sole Proprietorship Registration
- Easy to form and dissolve- Sole Proprietorship business can be started easily with minimal legal documentation.
- Direct relationship between efforts and rewards as both decision making and execution are in the same hands.
- Single Control- Since you are the only owner of a sole proprietorship, you are in complete control of your business. You do not need to seek the approval of any partners, members, directors, or shareholders, as you would need to do if you had a partnership, LLP, or company.
- Privacy- Since a sole proprietor entity does not requires annual filing of statements of affairs to the government authorities therefore your business operations are not subject to public disclosure like company or other form business entities.
- Sole Beneficiary of Profit- The right over the entire profit earned is of the Sole Proprietor only.
- No Separate Income Tax Return-The Proprietor have to file returns and pay taxes only in his/her personal name. There are no separate income tax returns to be filed and no tax to be paid by the firm
- Suitable for Micro Small and Medium Enterprises– Sole Proprietorship is best suitable for starting a small scale business where the capital and other resources requirements are quite less.
Procedure and Documents Required for Sole Proprietorship Registration
- Select the business you want to pursue
- Give your Business a Unique Name
- Choose the location or place of doing business
- Pan Card of the Proprietor
- Aadhar Card of the Proprietor
- Business Address Proof (eg: electricity bill, rent agreement (if business premises not owned)
- GST Registration
Documents and Days required for Sole Proprietorship Registration
First is Sole Proprietorship firm registration under Micro Small and Medium Enterprise (MSME) with GST Registration and Second is MSME without GST Registration. The time period and documents required under both type of registration is mentioned hereunder-
|No.||Type of Registration||Time Period||Required Documents|
|1.||MSME Registration||1-2 Working Days||MSME Form + PAN Card + Aadhar Card|
|2||MSME+GST Registration||8-10 Working Days||GST Form + PAN Card + Aadhar Card + Cancelled Cheque, Passport Size Photo of Proprietor + Address Proof of Business(Latest Electricity Bill) & Rent Agreement (if rented)|
By following the above simple process, you can start your business anytime with no legal documentation and no minimum capital.