Sole proprietorships are a common form of business in India. A sole proprietorship is founded and run by one person. This type of business structure is best suited for people who want to start a business with less investment. Registration as such is generally not required. It is possible to start a sole proprietorship at home or locally for a minimum amount. Control of the company lies solely with the individual owner who invests in the company. He bears all of the company's losses and benefits from all of its profits. He can appoint person to manage the company, but ownership remains exclusively with him.
Advantages of Sole ProprietorshipLess compliances
The sole proprietorship business can be begun effectively by only one person. There is least consistence that is expected to be adhered to get it integrated. This type of business is economical as it is somewhat more affordable to begin than an organization or LLP.
Control of the business
The sole proprietor will have unlimited authority over the business. He will care for every one of the parts of the business. Since only one individual is maintaining the business, secrecy can be maintained.
Quick decision making
The sole proprietor takes all choices of the business. The dynamic rests with a solitary individual. Accordingly, the choices can be taken rapidly and promptly without the requirement for counseling anybody.
Documents Required for Sole Proprietorship1) Aadhaar card.
2) PAN card.
3) Registered office proof.
4) Bank account.
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However, if you are running a sole proprietorship, you are not required to apply for a new corporate or business PAN card. Sole proprietorships are not issued separate PAN cards as they do not have a separate legal existence unlike a company or a firm.
A sole proprietorship is the most common type of unregistered business entity, owned, managed and controlled by one person. Proprietorship registration in Karnataka is preferred by most small and micro enterprises operating in the unorganized sector.
There is no separate registration process in India specifically for registering sole proprietorships in startups. However, a sole proprietorship can still enjoy various benefits by registering as a startup through the Startup India initiative.
You cannot have more than one owner in a sole proprietorship.
