What is Sole Proprietorship ?

Sole Proprietorship: A Single-Owner Business

A sole proprietorship is a business entity owned, managed, and controlled by a single individual.

The owner, referred to as the sole proprietor, is personally responsible for all business operations and profits.

Key Features

Easy Formation

Sole proprietorships are simple to start, requiring minimal legal formalities and setup costs.

Unlimited Liability

The proprietor is personally liable for all business debts and obligations.

No Separate Legal Entity

The business and the owner are considered the same for legal purposes.

Registration

While there's no specific registration process for sole proprietorships in India, they must comply with tax regulations. This typically involves obtaining:

GST Registration: To account for Goods and Services Tax (GST).
SSI/MSME/Udyam Aadhar Registration: To avail of benefits and incentives for small and medium-sized enterprises.

These registrations are essential to establish the business as a sole proprietorship and ensure compliance with Indian tax laws.