Sole Proprietorship

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Sole Proprietorship2018-06-01T08:08:49+00:00

Highlights

Easy incorporation

Sole Proprietorship is the easiest form of business entity in the terms of procedure of establishment.

Minimal cost

The cost involved in the formation of a sole proprietary firm is very less as compared to other forms of business.

Lesser compliances

As compared to other business forms, there are fewer legal compliances with respect to incorporation, operation and taxation.

Independent control

As Sole Proprietor is the single owner of his business, he surely has independent control over his operations.

Single Promoter

This is the only form of business entity that can be promoted by a single individual.

No corporate tax liability

As per the direct tax laws of India, the sole proprietary entities are not liable to pay flat corporate profit tax, unlike other business forms.

Why is Sole Proprietorship suitable for your business?

It should be noted that Sole Proprietorship is the easiest and quickest business form to kickstart your business if you have limited funds and resources. Besides, it is the most feasible form of business if you want to execute your business plan with least legal compliances and minimum operational outlay.

Frequently Asked Questions

Sole Proprietorship is the best business form to choose if you want to begin your startup with limited funds and resources. Besides, it is the most feasible form of business if you want to execute your business plan with least legal compliances and minimum operational outlay.
The major benefit of a Sole Proprietorship business is that the trader is given concession in taxes. He is liable to pay tax at the individual tax rate, which is 10% and exempted from the corporate tax, i.e. 25%.
In case you have to open a new Current account in the business name, you need to furnish the Shop Establishment certificate. Current account details are mandatorily required for setting up Sole Proprietorship.
The task of Sole Proprietorship registration is performed by the Registrar of Establishments.