Sole Proprietorship Registration

Proprietorship is managed by the individual person. Most of the small scale business prefers the sole proprietorship registration. Individuals, who would like to control over the entire business operation and run it as a small/ medium business can opt for this Proprietorship business. Commencing a sole proprietorship is easy and simple and it has a very less legal formalities for conducting the operation and it is one of the oldest form of business entity. The owner has the complete control in the company’s finances and operations and they make business decisions independently. This is a form of business organization which is owned and managed by a single individual, who shoulders the responsibility of running the business and takes the profit or loss. In this type of business form, single person is responsible for investment and bears the risk of the enterprise.

Unincorporated entity

It is the simplest form of a business very popular among small and medium businesses, freelancers and Individuals. Sole proprietorship is an easy and inexpensive process and does not create a separate legal entity. There is no separate legal registration for Proprietorship Company. It will be established through MSME / SSI / Udyam registration, GST registration, Import and export code Registration, FSSAI registration (food industry) etc.

Tax Advantages Sole proprietorship:

The proprietor pays personal and entity income tax together at end of financial year. There is no Income tax separately for the entity. This is considered as Hidden Tax Benefits in Proprietorship Company.

Proprietors Income Tax Slab

Income Tax Slabs Tax Rate
Up to Rs.2.5 lakh Nil
Rs.2, 50,001 to Rs.5 lakh* 5%
Rs.5, 00,001 to Rs.10 lakh 20%
Above Rs.10 lakh 30%

Pre Requisites

  • One person required
  • No minimum capital required
  • PAN and Aadhaar Card Copy
  • Office address proofs
  • Rental agreement and EB Copy.
  • They cannot transfer their share without the consent of other partners
  • The Partnership Deed should be on a stamp paper
  • An individual owner who bring and run a company, according to his knowledge, skill, experience and intelligence
  • There is no separate legal entities
  • Minimum requirement of legal formalities
  • Profit or loss can be handle by a sole proprietor
  • No one can interfere the business activities of the sole proprietor
  • There is no long-term business continuity, because the business span is limited according to the sole owner
  • Sole proprietor business has a stability


A sole proprietorship is a company with only one owner and is not registered with the state, unlike a limited liability company (LLC) or corporation. Starting a sole proprietorship requires no paperwork -- all you do to create a sole proprietorship is simply go into business.

Unlike corporations, sole proprietorships are not treated separately. This means that any profit derived from your sole proprietorship is treated as your personal income and is accounted for on your individual tax return. Any such income is taxed to you in the year it was received.

Not necessarily. But every business is unique hence there may be circumstances where business advisers help may require. You can consult with Solubilis at free of cost they will guide to choose the better form of business organisation.

It is an unincorporated entity. If you own a sole proprietorship, generally you shouldn’t have to go through the same registration. It is the simplest form of a business very popular among small and medium businesses, freelancers and Individuals.

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