A sole proprietorship (also known as individual entrepreneurship, sole trader, or simply proprietorship) is the easiest form of business done in India since it isn’t governed by any specific laws. Under proprietorship form of business, the compliance’s are minimal and easy to fulfill.
Unlike the partnerships or corporations, a sole proprietorship does not create a separate legal entity from the owner. In other words, the identity of the owner or the sole proprietor is the same as business entity. The simplicity of a sole proprietorship makes this form of business structure extremely popular among small businesses, freelancers, and other self-employed individuals. What begins as a sole proprietorship may be transformed into another form of ownership like a private limited company or a partnership among others.
Although sole proprietor doesn’t require any specific registrations to operate a business, he/she is advised to obtain the following registrations to make the business function smoothly.
While registering a sole proprietorship, an individual PAN card is used as an identity proof. Thereafter, the following applications are made:
*GST Registration is required if annual turnover is more than Rs. 20/40 lakhs. Also, if you are doing online business (selling through amazon, Swiggy etc.), you are required to get a GST number.
A sole proprietorship offers several advantages over other forms of business.
The potential disadvantages of sole proprietorship include the following:
We are a technology-driven platform, offering services that cover the legal needs of startups and established businesses. We offer a wide range of services to individuals, such as property agreements and tax filings.
Transparent pricing for all our services, our professional fee, government fee, and GST.