Sole Proprietorship

Proprietorship is the simplest form of business entity. You trade under your name, with no separation of assets and liabilities.

Everything you should know about a Sole Trading

  • Starting a sole proprietorship is less complicated than starting a formal corporation, and also much cheaper. Some states allow sole proprietorship to be formed without the double taxation standards which apply to most corporations.
  • Control over all business decisions remains in the hands of the owner. The owner can also fully transfer the sole proprietorship at any time as they deem necessary
  • A sole proprietorship can hire employees. This can lead to many of the benefits associated with job creation, such as tax breaks. Also, spouses of the business owner can be employed without having to be formally declared as an employee. Married couples can also start a sole proprietorship, though liability can only be assumed by one individual.
  • The owner of a sole proprietorship is not required to file a separate business tax report. Instead, they will list business information and figures within their individual tax return. This can save additional costs on accounting and tax filing. The business will be taxed at the rates applied to personal income, not corporate tax rates.
  • This particular type of ownership will let you have a good track of control as you are the sole discretion.
  • The cost of incorporation and the cost of compliances in sole proprietorship is minimum as compared to any other form of business.

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    I have just registered my business. What are the MUST compliance(s) that I have to pay for?
    Once a proprietorship is registered, AnnualIncome Tax Fillings, GST (if acquired) and TDS (if required) become some mandatory compliance to follow. Calls for an Expert
    How many people are needed to register a Sole Proprietorship?
    A Sole Proprietorship can be incorporated with one person only.
    Is it mandatory to have GST even after registering a Sole Proprietorship?
    A new startup registered under the Startup India scheme needs mandatory GST registration. If you are in E-commerce then acquiring GST is committal. Proprietorship incorporated in other special category states when exceeding the limit of an annual turnover of INR20 lakhs even.Get started
    What is the minimum capital required to start a Sole Proprietorship?
    There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
    What is the procedure for online registration of a Sole Proprietorship in India?
    PAN Card for the Proprietor along with identity andaddress proof is a minimum requirement, to begin with, registration process. Ask for Assistance
    Holding a separate bank account a mandatory step to register as Sole Proprietorship?
    The Reserve Bank of India has laid out Know Your Customer (KYC) norms for opening a current account in the name of a sole proprietorship and all Banks have similar procedures to open sole proprietorship current account in the business name. GST registration is required in most banks to open a current account or business account for a proprietorship.
    Is it mandatory to have a CA for my business?
    It is not mandatory to have a CA but a tax audit, whenever required, would be conducted by a Practising Chartered Accountant.
    Will the Proprietorship and Proprietor have different compliance to follow?
    No, the proprietorship and Proprietor are treated as one identity.The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business. Therefore, there will be no separate compliance to follow for the proprietor. Registrar of Companies expects all the applicants to follow a certain guideline before a name is applied. The applied company name is suggested to have a Brand Name, Business Activity, title (LLP, OPC, Pvt. Ltd.).New companies are entitled to under the process as it is the first step to register the businessCheck for more updates.
    Can a Sole Proprietorship be converted into any other business?
    Yes, a running proprietorship can be converted into OPC, LLP, and PLC with some additional expenses. Every nature of business has some minimum requirements, to begin with.

    DealTax Deliverables

    • MSME Registration (If Applicable)
    • PAN Card of Proprietor (If Applicable)
    • GST Registration (If Applicable)
    • TAN Registration (If Applicable)
    • Import Export Code (If Applicable)
    • FSSAI Registration (If Applicable)