It is the oldest and the simplest form of business entity. This type of business entity is mainly suitable for small-scale business operators. Sole Proprietorship Company is owned and managed by the individual making him the sole authority to take all kind of decisions regarding the operations of the organization. Further, the taxation and accounting procedure in this form of company is much easier than other forms of companies. As a sole proprietor is not required to file a separate business tax return and all income generated from the business is reported on the personal tax form.
- This form of business is economical as it is relatively less expensive to start than a company or LLP.
- There is minimum compliance that is required to be adhered to get it incorporated.
- The sole proprietor will have complete control over the business.
- The business gets benefits of Small-Scale Operations
Documents/Details Required for Registration of Sole proprietorship business
Following documents of the Proprietor is required:
- Copy of Aadhaar Card
- Copy of Voter ID Card
- Copy of PAN Card (compulsory),
- Any utility bill like water bill, electricity bill, property tax receipts or Gas Bill etc. of the business place.
Documents/Details Required for GST Registration of Sole proprietorship business
- Proof of identity. Such documents include Aadhaar, PAN, Passport, Driving license or any other Government-issued identity document would be required.
- Bank account details.
- In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and electricity bill/property tax receipt/water bill copy of the registered office property.
- In case of own property, copy of sale deed along with the electricity bill/property tax receipt/water bill copy of the registered office property.
Naming Criteria of a Sole proprietorship business
Since this kid of business structure is not much regulated by law, there are hardly any naming criteria’s. Just the name should not be illegal or offensive and it should not be misleading for the public.
Eligibility for registering a Sole proprietorship
Since this kind of business exists only in India, only a natural person who is a resident of India can be a promoter and the business should have a legal objective.
Minimum and maximum requirements of Sole proprietorship business
Only 1 individual holds the entire authority.