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sole proprietorship 

A Sole Proprietorship form of business organisation is where a business is managed by a single person. Generally, it does not require any registration as such. Any individual who wants to start a business with less investment can choose this type of business form.

The control of the business is solely in the hands of the single proprietor/owner. A single person who wants to start a business from home or on a premise with a minimum amount can opt for this form of business type.

The investment for the sole proprietorship business will be done by the single proprietor. He bears all the losses of the business and enjoys all the profits. He controls the business as well as manages it. He can appoint persons for conducting the business, but the ownership will rest solely with him

1 

procedure for incorporating

  1. Applying for PAN card.

  2. After obtaining a PAN card, or if the proprietor already has a PAN card, the next step is to keep a name for the sole proprietorship business.

  3. The next step is to open a bank account in the name of the business. All the transactions of the business will be through this bank account.

  4. Though no specific registration is required for starting a sole proprietorship firm, certain basic registrations are required to be obtained by a sole proprietorship firm for doing business. The basic registrations required by a sole proprietorship are-

  5. The proprietor needs to obtain the Registration Certificate under the Shops and Establishment Act of the state in which the business is located.

  6. The sole proprietorship should also register for GST if the business turnover exceeds Rs.20 lakh.

  7. The sole proprietorship can also register as a Small and Medium Enterprise (SME) under MSME Act, though it is not mandatory, it is beneficial to be registered under the same.

2

documents required

  1. Aadhaar Card.

  2. PAN Card.

  3. Registered Office proof.

  4. Bank Account.

3

Checklist 

  1. PAN Card of the proprietor.

  2. Name and address of the business.

  3. Bank Account in the name of the business.

  4. Registration under the Shop and Establishment Act of the respective state.

  5. Registration under GST, if the business turnover exceeds Rs.20 lakhs.

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