A sole proprietorship is a business entity that is owned, managed and controlled by one person. It is an unregistered business entity utilized by small businesses operating in the unorganized sectors. Proprietorship does not offer the promoter a host of benefits such as limited liability proprietorship, separate legal entity, corporate status, independent or perpetual existence, or transferability. This is why proprietorship is suitable only for unorganized, small businesses that will remain small and/or have a limited period of existence. All the registrations for a proprietorship will be in the name of the proprietor alone, making him/her personally liable for all the liabilities of the Proprietorship.
Since Proprietorships are recognized through tax and government registrations, the compliance is limited to annual filing of services, professional and taxes.
Anyone can set a firm up and be running it within 15 days, provided you have a GST registration, which we will be happy to help you with. Since minimal number of documents like PAN card, ID card and Address Proof are the only requirements, the process is super-fast and convenient as well.
This type of firm is inexpensive compared to other firms, thanks to the minimal compliance requirements. Despite its severe shortcoming of unlimited liability, it is popular among the unorganized sector merchants and traders.