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Sole Proprietorship

Sole Proprietorship

A business enterprise exclusively owned, managed and controlled
by a single person with all authority, responsibility and risk.


  • A sole proprietor is the only owner, so is free to run the
    business just the way he wants to run it.
  • In a sole proprietorship one can keep all the profits
  • It can be started with low capital
  • The formation and operation of it requires almost no legal

  • Disadvantages

  • The proprietor is held personally liable for the liabilities of the sole proprietorship firm,therefore the proprietor has umlimited liability
  • The fund raising ability is also very limited.
  • Lack Of resources so less growth.
  • Cannot add partners.

  • Registration

    There is no formal procedure in India to register a sole proprietorship.In order to make the business legal and to get a bank account on the company name a sole trader or a proprietor has to register with one of many options available such as Service Tax,Sales tax,vat,Shop license.

₹ 1000
  • Unlimited Bandwidth
  • Unlimit Space
  • 100 Database
  • 1000 Email Addresses
  • PAN Registration
  • Service Tax Registration
  • VAT
  • GST
  • Shop & Establishment registration


What is a sole proprietorship ?

A sole proprietorship is the simple form of Business Structure having one owner and isn't required to register for starting up. Beginning a sole proprietorship is extremely simple and doesn't require a formal filing or paperwork process. All you have to do is simply go into business. A sole proprietor is exempt from tedious paperwork, but is still required to register under different acts for carrying out its business.

How is a sole proprietorship different from other Business Structures ?

Sole proprietorship is a business just like any other business structures, but they vay significantly in the following ways:

  • Sole proprietors are the cheapest business type when it comes to operational and other costs.
  • Sole proprietorships are the least complex of the legally recognized business structures.
  • Sole proprietorships are exempt from mandatory state registration Acts.
  • Sole proprietorships don't require formal paperwork.
  • Sole proprietorships don't shield individuals from business related debts or liability. The liabilities are unlimited and personal properties are also liable.
  • Sole proprietorships don't require a tax filing separate from personal income. Tax filling are same as personal income. Incase of other business structures the filling are done separately.

Can a Sole Proprietorship be converted into a Partnership or Company ?

Yes it can be converted. But additional Partner or Director is required. And compliance should be followed for converting.