A sole proprietorship has been the simplest and common form of business for traders and merchants in India. An individual proprietor owns and manages the business and is responsible for all business transactions. The sole proprietorship firm does not create a legal entity separate from its proprietor or owner. It simply refers to a person who owns and manages the business and is personally responsible for all business transactions. A sole proprietorship can operate under the name of its owner/proprietor or it can do business under a separate trade name. A sole proprietorship firm require minimum two legal entity proofs to open a Current Bank Account.  

Option 1 as GST registration

Considering the business nature, one may require GST registration either on mandatory or voluntary basis.

Option 2 as MSME license

Go with this option when you are starting a very small business and do not require GST registration in any condition.

What are the documents required for proprietorship firm?

• Aadhaar Card
• PAN Card
• Registered office proof
  
  

Features of proprietorship firm

• Single owner of the business
• Easy to start and easy to close
• Complete control
• Lower cost of formation and compliance 
  
  

What are the advantages of a sole proprietorship firm?

• Minimal compliance
• Suitable for small to medium scale businesses
• Easy to register as compared to a Private Limited and a Limited Liability Partnership
• Greater flexibility and ease of operations
• Basically, Proprietorship Firm registration is a simple firm registration. It’s also called Sole Proprietorship Firm in that there is single owner of the business and has unlimited liability.
  
  

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