Sole Proprietorship
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About Sole Proprietorship
A sole proprietorship is a business owned and run by just one person. It’s the simplest business structure, with few formalities to set up. The owner keeps all profits but also bears all financial responsibility. This makes it ideal for freelancers, consultants, and small businesses just starting out. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business down to his or her heirs.
Advantages of a Sole Proprietorship Firm
- A sole proprietor has complete control and decision-making power over the business
- Sale or transfer can take place at the discretion of the sole proprietor
- Income is taxed at Slab rate (upto Rs.5 lakhs Nil tax)
- Minimal registration costs to forming a sole proprietorship
- Few business compliance requirements
Disadvantages of a Sole Proprietorship Firm
- Unlimited Liability
- Limited Business expansion
- Difficulty in Capital raising
Documents Required
It is very easy to register this type of business as very few documents are needed. The required documents include:
- Your PAN card (Copy)
- Adhaar card (Copy)
- Passport size photo
- Proof of Address(Power bill, Municipal tax bill, Sale deed copy)
- Telugu Name Board Photo of the Business Premises
Registration Duration
Registration of Sole proprietorship firm takes the shortest time and can be completed within a min. of 2 days. Despite registration taking the shortest time possible, this solely depends on government procedures and approvals during the time of your registration.
Registration Fee
The Government’s registration fee starts at Rs.500 while professional fees start at Rs.2500 and the variance would depend based on the type of business, number of employees and location of the business and even the requirements to be met while registering your particular business.
