A sole proprietorship has been the simplest and common form of business for any traders and merchants in India. An individual proprietor owns and manages the business and is responsible for all business transactions. The sole proprietorship firm does not create a legal entity separate from its proprietor or owner. It simply refers to a person who owns & manages the business and is personally responsible for all business transactions. A sole proprietorship can operate under the name of its owner/proprietor or it can do business under a separate Trade name. A Sole Proprietorship Firm require minimum 2 Legal Entity Proof to open Current Bank Account.
Option 1 as GST Registration :
Considering the business nature one may require the GST Registration either on mandatory or voluntary bases.
Option 2 as MSME license :
Go with this option when you just starting your very small business and not required the GST Registration in any condition.
What are the documents required for proprietorship firm?
- Aadhar Card
- PAN Card
- Registered office proof
Features of Proprietorship Firm :
- Single Owner of the Business
- Easy to Start and Easy to Close
- Complete Control
- Lower Cost of Formation and Compliance
What are the advantages of a Sole Proprietorship firm?
- Minimal compliance
- Suitable for small to medium scale businesses
- Easy to register as compared to a Pvt. Ltd. and a limited liability partnership
- Greater flexibility and ease of operations
- Basically Proprietorship Firm Registration is a simple firm registration it’s also called Sole Proprietorship Firm in that Single owner of the business and Liability is also the unlimited.