A Sole Proprietorship is a business owned, managed, and controlled by a single individual. The proprietor has full authority and responsibility for managing the business operations, arranging capital, and overseeing its activities.
Unlike other business structures, no formal deed or agreement is required for registration. The proprietor enjoys all the profits generated by the business but also bears any losses incurred. Additionally, the liability of the proprietor is unlimited, meaning personal assets may be used to settle business debts.
Establishing a proprietorship is straightforward, with minimal legal formalities and expenses.
The proprietor has complete authority over business decisions and operations, ensuring flexibility and independence.
All profits earned by the business belong exclusively to the proprietor, without the need for sharing.
Proprietorship businesses have fewer regulatory and compliance requirements compared to other business structures.
Aadhar / Voter ID / Driving licence / Passport
The Address proof of the proprietor along with the Proof of the registered place of business (Ownership documents/ rent or lease agreement) or any bill in relation to electricity /landlord bill / bank statement.
The photos of the respective proprietor should submit for the clarification and proof.
The PAN card of the respective proprietor of the firm.
Digital signature is the electronic signature format of the proprietor for the purpose of e-filing.
No objection certificate by the owner / landlord must be enclosed.
As the name suggests, only one person is required to start the sole proprietorship business.
There is no minimum capital requirement in sole proprietorship business.
The liability of the proprietor is unlimited is one of the major disadvantages of a proprietorship concern.
No , registration is mandatory to sue to third party.
No, registration is not compulsory but registration provide you legal rights.
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