Sole proprietorships have several advantages over other forms of business structures such as like they are easy to form, and the owners enjoy sole control of the business and its profits. The biggest disadvantage is that the owner is personally liable for all business losses and liabilities.
A sole proprietorship firm is a type of business entity that is owned, controlled and managed by an individual person. A sole proprietor has complete control and decision-making power over the business.
Sole proprietorship businesses typically require less paperwork and are easier to maintain than partnerships or corporations. The business owner is responsible for the debts and liabilities, and the accounting and record keeping methods are usually simple and straightforward. In simple words, sole proprietorship is one man business organisation.
Step 1: Choose a name for the business.
Step 2: Open a bank account in the name of the business.
There is no formal registration required, but can be obtained through either the following ways:
– Register as a Small and Medium Enterprise (SME) under MSME Act,or
– Register under GST Act, or
– Register under Shop and Establishment Act.
Every Indian citizen can have sole proprietorship.
From your grocery store to retailers and manufacturers, many local businesses are solely owned.
All registrations are completely paperless and online. We also provide all services online so that you don't need to travel from your office or home.
Proof of the existence of your company is required to open a checking account. Most banks will apply for MSME registration and / or GST registration. You will also need a PAN card, an address and proof of identity.
You can always choose to do so. The procedure is very simple. It is common for sole proprietors to convert into partnerships and private limited companies at a later stage.
A Sole Proprietorship business takes less than 12 days to set-up and start functioning. This simplicity makes it popular among small traders and merchants. It is also much cheaper. This is the reason why it's the most widely used business structure.