Overview

Single proprietorship: one person owns, operates, and controls a single proprietorship commonly known as a sole trader. In this type of business structure, the owner and his or her company are not legally separate entities, so he takes on full responsibility for everything to do with that entity because there is no real line separating him from it. Individual entrepreneurs generally choose one of three types of proprietorships because the businesses are easy to establish, require less in terms of regulations, and give owners direct control over their business choices.

Benefits

• a) Easy to Setup: You can create a sole firm with few documents and without legal compliance, quickly activating your business operations.
• b) Independence: If you are a sole proprietor, your business is yours – from daily operations to major decisions.
• c) Tax Advantages: The income from the proprietorship is taxed to the owner as personal income, thus providing owners with some advantages in tax regulations.
• d) Flexibility: Since there are fewer regulatory requirements and compliance issues, a proprietorship offers operational flexibility, helping you adjust to changing market dynamics.

Understanding Procedure

1. 1) Create a Business Name
2. 2) Open an Account in Bank
3. 3) Get a PAN card
4. 4) Register with the local Shop and Establishment Act.
5. 5) Follow and respect tax regulations

Documents

• 1) Aadhar Card
• 2) PAN card
• 3) Details of Bank Account
• 4) Proof of Business Address
• 5) License of Shop and Establishment Act
• 6) GST Certificate
• 7) Any other certificates and licenses if required

FAQs

1. Is registration required for sole proprietorship?

It is carried on by one person. Until recently, no registration is needed as of now.

2. What is the price of a proprietorship?

Generally, no cost is required for sole proprietorships in India.

3. Can I run a business as a sole proprietor?

Simply Yes, you can be a sole proprietor.

4. Is sole proprietorship a private company?

A sole proprietorship is a private company.

5. Is sole trader the same as sole proprietor?

Sole trader is individual merchant conducting business in his own name and the owner of that. The person who solely owns a property could be referred to as the sole proprietor.

6. How do I register myself as a sole trader?

To register as a sole trader, you have to move through the following steps:

• Create your business name
• Create a bank account
• Obtain a PAN card
• GST certificate