Sole proprietorship can be called the simplest form of business. As such, a sole proprietorship is not a legal entity. The term is basically used to refer to owners who have their own businesses and in these cases they happen to be responsible for the debts incurred by their business as well.
Starting a proprietary concern or proprietary firm is a simple process. There is no formal registration to be done. An Individual / sole trader (or one person firm) intending to do business or profession, can register the concern under Goods and Service Tax Act (GST), Profession Tax Act or Shops and Establishment act or Udyog Aadhar (MSME)
A Self-Owned Business can be register with any business name, provided its legal. There is nothing as proprietorship registration on paper; but it can be recognised as an unorganised business structure under the various departments based on the business set-up and category.
There are several reasons as to why sole proprietorships have become as popular as they have been. As has been said already, this form of business is the simplest out there. It is also really easy to set up such a business and you need little money in order to set up such a company.
If you wish to register a sole proprietorship all you need to do is register your name and get a license that allows you to do business in your immediate locality. One of the major issues of such a business though is that you are always held personally responsible for all the debts incurred by your business.
Under sole proprietorship all business transactions are done in the name of proprietor only. Unlike other forms of business registrations, there is no specific registration as a business entity. Since its nothing other than the individual himself, the liability of the sole proprietorship is unlimited.
Can a business name be given for proprietary concern?
Yes. The business can be operated in the Individuals name or a formal name can be given to perform the business.
Advantages of a Sole Proprietorship Company Registration
1. Easy to form, no hassles
2. Can be started within hours by just opening a current account
3. Separate pan card is not required
4. Minimum one person
5. Can be closed on the will of the owner
6. Ideal for small businesses like that of retail
7. Minimal Compliance
8. Easy to Start
9. Relatively Inexpensive
Documents Required for Proprietorship Registration
1. Copy of Aadhaar card of proprietor
2. Copy of PAN card of proprietor
3. Copy of Rental Agreement of premises.
4. Form A & Child Form Filled and Signed (This we will infor you how to do)