A sole proprietorship (also known as individual entrepreneurship, sole trader, or simply proprietorship) is a type of unincorporated entity that is owned by one individual only. It is the simplest legal form of a business entity.

Features of Sole- Proprietorship:

  •  One man ownership.
  •  Less formalities.
  •  No Separation between ownership and management.
  •  All profit or losses to the Proprieter.
Sole Proprietorship Advantages (Some Will Surprise You)

Advantages of Sole- Proprietorship Firm

Separate Legal Entity

A private company is a company having separate legal entity and it may own property on its own name and can sue and be sued through its own name.

Limited Liability of Members

The liability of each member or shareholders is limited to the contribution made by them.

You are your own boss

In Sole proprietorship firm, proprietor is the sole owner of the firm and have direct access in the day to day opreations of the firm and the proprietor can make decisions as per his will which he deems fit for the benefits of firm.

Quick Decision Making

There is quick decision-making in sole proprietorship as all the decisions are made by a single person, though in the case of need, he may consult others while making decisions.

Business Secrecy

there is a very high secrecy of information in sole proprietor as the sole proprietor is not bound to share the information of proprietorship firm with other. In many cases secrecy of information is quite helpful for business opreations.


Ease of Formation

Generally, minimum legal formalities are involved in setting up or closer of solproprieship firm

Documents Required For A Sole Proprietorship Sales department manager (01 person)

  • Aadhar Card of Proprietor
  • PAN Card of Proprietor
  • Bank Account details of Proprietor
  • Registered Office Proof
Registrations Required For A Sole Proprietorship

  • Registering as SME
  • Shop and Establishment Act License
  • GST Registration

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