A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
Advantage:
- Complete control of owner
- No regulatory law hence almost no compliance
- Absolute incentive of business
- Tax Advantage
Registration: Although sole proprietor doesn’t require any specific registrations, it is advised to obtain a few registrations to make his/her business function smoothly
- MSME Registration
- GST Registration
- Shop and Establishment Act License
Document Required for Registration:
- Aadhar Card
- PAN Card
- Bank Account
- Place of Business proof