What is Sole Proprietorship?

A Sole Proprietorship is a business owned by only one individual who pays personal income tax on the profits generated by the business.

Sole proprietorships are the easiest to establish or dissolve due to a lack of government regulation. Therefore, this type of business is very popular among sole proprietors, individual contractors, and consultants. Many sole proprietors run their business under their own name because there is no need to create a separate business or trade name.

The legal status of a Sole Proprietorship can be characterized as follows:

• A Sole Proprietorship has no separate legal identity from its owner.
• The Sole Proprietor has unlimited liability.
• It can sue or be sued in the proprietor’s name.

Benefits of Sole Proprietorship:

• Simple to start a business:

In seven days you can begin your business by setting aside your time and cash.

• Single Ownership:

Single possession implies fewer complications, additionally, decision power is restricted to one individual.

• No Restriction For Business Name:

There is no need to register the name for ownership reasons, you can straightforwardly begin your preferred business on any name.

• Simple Closure:

The closure process is quick and easy with the least formality.

Compulsory Requirements to Start a Sole Proprietorship

The four necessities to begin the business are:

Aadhar Card

PAN Card

Bank Account

Registered Office proof –

• Rented Property: Rent Agreement and NOC from a landowner.

• Owned Property: Electricity bill or any service bill.