A sole proprietor enjoys various leverages when it comes to the rights over the business, being the sole owner, a sole proprietor is entitled to all the profits and tax leverage. People prefer to start with this structure at the initial level because it is easier to handle. Starting a business as a sole proprietor may become a burden for you because comprehending the registration process and ensuring its flawless execution is difficult but you don't have to worry because Legal24by7 is here to help you out. Take your first step with us.Get started just in a few clicks!. Hassel Free Online Sole Proprietorship Registration.
Who should start their corporate journey by establishing a Private Limited Company?
A sole proprietor is a single owner and administrator of the business who has the right to enjoy every benefit and is liable for every loss under the name of the business. Most of the SMEs in India are based on sole proprietorship because it is easy to start and there is no need for the formation of any governing deed. It is very popular among small merchants and traders because of its fast establishment and fewer legal requirements.
1. Immediate Start
The entrepreneur doesn't have to register the company to start the business it can simply start with the operation and receive the payment from the client.
2. Liberal Compliance
It is one of the greatest advantages of being a sole proprietor that there are no rigid complaints that they have to go through.
3. Quick Dissolution
There is no wind-up procedure a proprietor has to go through particularly, to sum up, the business.
4. Leverage in Tax Rate
The tax is marked through the individual Income Tax slap and Income Tax threshold limits which makes it liberal for sole proprietors.
PAN of the company
Only one Director
Other Identity Proof like Aadhar Card/ Passport / Driving License / Voter Identity Card
Passport size photograph
Address proof of director
Self-attested copy of bank details.
Additional Documents
No-Objection letter by the owner of the address company is using
Supporting documents to be signed by the owner to verify the address like Electricity Bill / Telephone Bill / Gas Bill / Water Bill
Legal25by7 is here for you on every step of your Sole Proprietorship Registration. If you have any doubt about whether to go for any other type of company, we are here to resolve this confusion for you. We will enlighten you about what are the different ways you can set up your dream organizations and what benefits you get from each one of them. Your dream is to start your journey and our aim is to see you do it smoothly.
For convenient registration of a Sole Proprietorship, we have a team of highly skilled professionals and a large network of people who can assist you with every service that you will need. We are ready to play the role of facilitator and see you climb the ladder of success; all you need to do is to take the first step and connect with us.
A sole proprietor is different from other types of company in many ways, a sole proprietorship is easy to form because there is less documentation that you have to go through. The management and working of it are very easy because there is a single party holding all the rights. If you talk about the tax leverages which is Greater for the sole proprietor because this is only a single income tax that is charged on it and no need to maintain separate taxes.
Yes, at any point in time you can convert from proprietorship to private, LLP, or OPC.
A proprietor is the owner of the sole proprietorship and is not having a separate identity from it.
All small businesses especially local businesses like grocery stores or local manufacturing factories are established as sole proprietorships.
It can take a maximum of 15 days to set up a sole proprietorship and start its functioning. The registration of sole proprietorship is very easy and cheaper than any other company.
No, a proprietor cannot issue shares or have investors invest in his business
A sole proprietor just has to file the income tax report to the Income Tax Department. It does not have to do the same with the Ministry of Corporate Affairs.
There is no minimum capital requirement to start a sole proprietorship.
