A sole proprietorship is a form of business structure that best suits small businesses that can be owned and managed by a single individual.
The sole proprietorship is very easy to set up with minimum legal compliances required than other forms of business and as such it is very popular in the unorganized sector.
There is no specific process for registration of sole proprietorship needed. A sole proprietorship is usually recognized by the allied registrations like GST registrations or government licenses acquired to conduct specific businesses.
One of the biggest drawbacks of sole proprietorship is that it comes with unlimited liability i.e if the assets of your business does not compensate your debt then your personal assets will be attached to pay that debt or liability.
The compliance is usually limited to the filing of annual returns in the form of service, professional or sales tax according to the nature of business run.
- Relatively inexpensive and easy to set up.
- Minimal compliance needed.
Procedure for the Sole Proprietorship Company:
Step 1- Applying for the PAN (If you have a PAN you are successfully completed with step 1)
Step 2- Name your business
Step 3- Open a bank account in the Name of the business
- PAN CARD
- AADHAR CARD
- BANK ACCOUNT
- REGISTERED OFFICE PROOF