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