What is Sole Proprietorship?

The word “Sole” indicates only one and the word Proprietorship indicates about the ownership of the business. Hence, sole proprietorship is one of the oldest form of business which is been followed by all the business entity, which means a single person owns, manage and control, all the business activities and an individual who operates the business is all knows as sole proprietorship.

Main Characteristics of sole proprietorship:-
  • Single Ownership
  • No sharing of profit or loss
  • One man’s capital
  • Unlimited liability
  • Less legal formalities
  • One man control

Is registration of sole proprietorship mandatory?
No, Sole Proprietorship Registration is not mandatory. It is optional on whether a person intends to register his sole proprietorship or not. Although, banks insist on getting sole proprietorship registered if you intend to open a bank account in the name of your business, but as per law it is not mandatory.

Documents required for sole proprietorship registration:-
  • Aadhaar card
  • Pan card
  • Bank Account
  • Registered office proof

Get your Sole Proprietorship registration in 3 best ways as follows:-
1. Register under Shops and Establishment act
2. Get Udyog Aadhaar Under the Ministry of MSME
3. Get a GST registration