SOLE PROPRIETORSHIP
A sole proprietorship is the simplest business structure in India, owned and managed by one individual. With minimal compliance, it suits small businesses with up to five employees. The proprietor bears unlimited liability, as there’s no legal distinction between the owner and the business, and no partners allowed.
₹ 2000/- ₹ 5000 60% Off (Excluding Government Fees)
Documents Required
- Aadhar Card
- Pan Card
- Mobile Number
- Email ID
- Passport size photo
- Electricity Bill
- Rent Agreement
Sole Proprietorship Details
Advantages of a Sole Proprietorship
- Easy Registration: No formal incorporation required; only necessary licenses and registrations as per business needs.
- Lower Compliance: Minimal regulatory requirements compared to LLPs and companies.
- Simplicity: No partners or shareholders; easy to manage with minimal documentation.
- Quick Decision-Making: The proprietor has full authority to make business decisions independently.
- Complete Control: Full ownership of assets, revenue, and operations.
Frequently Asked Questions (FAQs) on Sole Proprietorship
Any Indian citizen with a legal business idea can start a sole proprietorship.
No formal registration is required, but licenses like GST, Shops & Establishments Act, or other specific permits may be needed.
No, the proprietor and the business are considered the same entity.
The business income is taxed as the proprietor’s personal income under individual tax slabs.
Yes, it can be converted by fulfilling the necessary legal and regulatory requirements.
No, the proprietor has unlimited liability, meaning personal assets can be used to settle business debts.
Yes, but it is typically suited for small businesses with a few employees.
A current account can be opened using business-related documents like GST registration, business invoices, or a shop license.
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