Sole Proprietor

What does it mean to be a “sole proprietor”?

When referring to a business, the term “sole proprietorship” refers to a company that is wholly owned, operated, and managed by a single individual. Single Proprietor of the Company refers to the person who owns the Business. Since the business is being managed by a real person, there is no separate entity in the eyes of the law between the promoter and the business. All of the money made goes to the promoter. There is no need to file paperwork to start a sole proprietorship.

While there are less requirements for formality and lower fees to create a sole proprietorship, it is rather simple to get one up and running.

There is no registration system for single proprietorship firms in India, and the government has not issued any laws or regulations governing them.

However, a sole proprietorship may only be legally recognised as such through the acquisition of the appropriate tax registrations.

In order to prove that the Proprietor is running a business in his or her own name, he or she must get the appropriate tax registrations, such as GST Registration and/or SSI/MSME / Udyam Aadhar Registration.

Compliance required by Proprietorship firm

• GST Registration
• GST Return
• MSME registration
• Accounting
• IT Return
• Tax Audit

Characteristics of a Sole Proprietorship Business

• Easy Decision Making
• Easy To Start
• Easy to close
• Tax benefits
• Self employment
• Inexpensive