A sole proprietorship is also known as a sole trader or a proprietorship. It is an unincorporated business structure that involves just one owner who pays personal income tax on profits earned from the business. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name. It is the easiest form of business as it involves minimal government interference. The sole proprietor owns cent percent of the business income and makes all the decisions on his own. They are themselves the driving factor of the business and have say in all the business matters.
Sole Proprietorship Registration is the most common and easiest form of doing business in India. The Proprietorship firm is owned, managed and controlled by a single person. Here is the list of documents required for Sole Proprietorship Registration in India :- PAN Card of the Proprietor - The business owners need to have their PAN Card. For opening bank accounts, obtaining licenses/registrations/certificates in the name of the sole proprietorship, and filing income tax returns for the sole proprietorship, the proprietor may use his PAN card.
The Government of India has started the new process of MSME Registration in order to initiate “AatmaNirbhar Scheme”.The Micro, Small and Medium Enterprises who have already registered under UAM (Udyog Aadhaar Memorandum) or EM (Entrepreneur Memorandum) I and II have had to re-register their MSME before 31st March, 2020.
On our Udyam & Sole registration portal, we have introduced a new solution of printing the Udyam application. Discover how to print your Udyam application at our soleproprietor.in.
Sole proprietorship is a one-man organization where a single individual owns, manages and controls the business. It is the easiest type of business and the proprietor owns 100% of the business and makes all the decisions on his own. Here are some steps to start and register for a sole proprietorship in an efficient and hassle-free manner – 1. Decide what kind of business you’ll start - The choice you make about what type of business you start will affect how much you pay in taxes, the level of risk or liability to your personal assets. A variety of businesses can be considered by a sole proprietor. As it involves just one individual who owns and operates the enterprise, there are a variety of options to choose from. Here are some examples – freelance writer, housekeeper, caterer, financial planner, event planner, consultant, etc. 2. Ensure a sole proprietorship is right for you – As a sole proprietor, there is no legal distinction between the owner and the business. Hence, it is important to determine if sole proprietorship is really your cup of tea. This can be analyzed by looking at its pros and cons.