What is a Sole Proprietorship in India?
When a business is owned and governed by one person, it is known as a sole proprietorship in India. This type of business can be started in 15 days and is thus one of the most popular types of businesses to start in the unorganized sector, specifically among traders and small merchants. For a sole proprietorship in India, registrations are not required as they are identified by trade registrations such as GST registrations. However, its liability is unlimited, and it also does not have a perpetual existence.
Advantages of Sole Proprietorship in India:
- Minimum Compliance: Sole Proprietorships have minimal compliance as this form is identified by its service and tax registrations. Therefore, the extent of its compliance is limited to the annual filing of service, sales, or professional taxes.
- Easy to Begin: Any sole proprietorship in India registration is easy to start. One needs to only have a GST Registration in place. Hence, the procedure is not complicated. Thus, the sole ownership business can be set up in 15 days with the help of a PAN card for identity and proof of address.
- Cost-Effective: When compared to an OPC or One Person Company, a Sole Proprietorship is cost-effective due to its minimum compliance requirements. Even in the long-term perspective, it is still inexpensive. It works out much cheaper because one would not need to hire an auditor. This is one of the main reasons why small traders and merchants opt for it.
Sole Proprietorship India Registration Procedure:
- Business Day 1: Our experts provide you with professional guidance on the various processes involved in registering your business as a sole proprietorship, whether it’s service tax, sales tax, import/export code, professional tax, or Shops and Establishments Act registration.
- 5 Business Days: Our team will put you in touch with an established vendor who will book your application and also keep you informed about its status and progress. The vendors we have on board are well-experienced and adept at managing local registrations.
- 15 Business Days: We will offer full support until you get the registration you’ve chosen. In some cases, this could take up to 15 days, but 5 days in a few others, as this is entirely dependent on the workload for the professionals involved.