KEY FEATUES OF A SOLE PROPRIETORSHIP

  • In a sole proprietorship there is basically no Registration of business rather the owner pays tax on the income earned from business.
  • The sole proprietorship is the most compliance friendly as there are very less compliances.
  • The sole proprietor shall have a complete control over the business and hence the owner looks after every aspect of the business.
  • Since there is only one decision making authority in a sole proprietorship it makes the process much easier and less time taking.
  • As the sole proprietorship is a single member body he is under unlimited liability to pay of all the debts of the business.
  • There no concept of perpetual succession in a sole proprietorship.
  • Since a sole proprietorship is a is a single person entity it is difficult to raise funds.

HOW TO REGISTER A SOLE PROPRIETORSHIP?

STEP 1: Registration of sole proprietorship with relevant authorities

STEP 2: Obtaining Licenses for specified businesses

STEP 3: Opening Bank Account

DOCUMENTS REQUIRED FOR REGISTRATION OF A SOLE PROPRIETORSHIP

  1. Municipality to issue License for Establishment of shops. License or certificate from Property Registration document.
  2. Agreement in case of rental property along with NOC from the Land Lord.
  3. License to carry out specific trade from respective authorities.
  4. ITR of the proprietor.
  5. PAN card for various compliances like registration ITR filing etc.
  6. GST Registration certificate for Manufacturing and trading business although it is not mandatory.
  7. Licenses from authorities under the Shop and Establishment Act.
  8. MSME Registration certificate

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