A sole proprietorship is easy to start a business in India. A proprietor safeguards the capital, establishes and operates the business, assumes all the risks, hence accepts all the profits and losses, and pays all the taxes.
Sole proprietorship registration process is simple and does not have excessive regulatory compliance requirement as compared to private limited or limited liability partnership firms.
Besides, registration of a sole proprietorship is completely optional for Indian businesses. But in order to open & maintain a bank account in the name of business, few guidelines needs to be followed. Registrations such as VAT, Pan Card, TDS, Service Tax, or Sales tax registration is required and a list of other relevant documents, which are termed as mandatory by a banker for opening a current account.
Since, there is no mechanism stipulated by the Government of India for the registration or incorporation of a Proprietorship, the existence of a proprietorship can be established only through tax and other business registrations.
Processing steps for Registration
JS Tax Consultant can help you to startup sole Proprietorship within 7 to 14 working days, subject to Government processing time.
Documents needed for proprietorship
- Minimum Capital is not Required
- Two color Photo of the proprietor
- Pan Card of the proprietor
- Proof of Registered company Address
- Address Proof of the proprietor
- Rubber Stamp of the proprietorship
- Signature on affidavits as declaration
Advantages of Sole Proprietorship
- Easy to Create
- Only one person is needed
- Operate as you want
- Good for small businesses (RETAIL)
- One Person has absolute Power
- By just opening a current account, You can start a business
- No need of company PAN card
- Owner receives profit
- Can be closed on the will of the owner
- Owner is liable for loss | debt
- Minimal Filing returns
JS Tax Consultant Expert will collect the necessary information and documents for preparation of your Proprietorship registration requirements.