The sole proprietorship is the simplest type of business structure that is owned and operated by the same person. The sole proprietorship is a popular business form due to its simplicity, ease of setup, nominal cost and have minimal regulatory compliance requirements. A sole proprietor need only register his or her name and secure licenses such as Service Tax Registration or Sales Tax Registration, and the sole proprietor is ready for business.
However, the liability of the sole proprietor remains unlimited.
Buzypro.com, legal service portal helps you to register a proprietorship firm
DOCUMENTS TO BE SUBMITED BY PROPRIETOR
- Pan Card Copy of Proprietor
- Aadhar Card copy of Proprietor
- Copy of ID & Address Proof - Voter’s ID / Passport / Driving License
Ease of formation
Starting a sole proprietorship is much less complicated than starting a formal corporation. A Current Account with Government registrations such as Sales Tax, Service Tax or IE Code is enough to start o Sole Proprietorship.
A Sole Proprietorship is inexpensive as compared to other forms of business structure.
The proprietor is not required to file a separate business tax report. Instead, they will list business information and figures within their individual tax return. The business will be taxed at the rates applied to personal income, not corporate tax rates.
Control over all business decisions remains in the hands of the owner.