A Sole Proprietorship is the simplest type of business structure that is managed, controlled and owned by one person. Sole proprietorship is generally opted by micro and small-sized businesses with less investment. A Sole Proprietorship has no separate legal identity and has the same legal entity as the proprietor. The ownership of a sole proprietorship cannot be transferred to another individual and the business comes to an end with the death or exit of the owner.
Sole proprietorship registration is mostly opted by unorganised small businesses, working for a limited period of time, or at a very small scale. However, the legal compliances and formalities to register a sole proprietorship are the easiest as compared to other forms of businesses and it can be incorporated with few simple formalities.
The process of sole proprietorship registration includes submitting the relevant documents, filing of the application for registration, filing of GST registration application for the business and processing of the application. The entire process takes 5-10 days to complete.
The documents required to start a sole proprietorship business includes the following:
- PAN Card
- ID Proof (Passport / Voters Card / Driving Licence and Aadhaar Card)
- Rental Agreement, if the property is rented
- Electricity Bill as the proof of address, if the property is owned
- Passport-size Photo