A Proprietorship is an organization in which only one person manages the whole business. Proprietorship is also known as Sole Proprietor. As such no registration is required for it. Any person whose investment is less can choose this type of business.
A person who wants to work from home on a smaller amount can form this type of business. Only one person handles the whole business in this type of formation. He can hire workers or employees for the business but the ownership will rest solely with him. Many small businesses such as grocery stores, general stores, parlors, saloons, boutiques, retail stores, etc., can be launched as a sole proprietorship. Even traders and manufacturers can start a sole proprietorship firm.
Advantages of Sole Proprietorship
- Less compliances
Additionally, the main advantage of Proprietorship is that it can launch in a very less amount by a single person.
- Control of the business
On the other hand, the overall control of business is with the sole Proprietor. As one person manages the whole business so secrecy is maintained.
- Quick decision making
Only one person will decide everything. The benefit is that the decision-making could done quickly and immediately without discussions.
Documents needed for Proprietor
- Aadhaar Card.
- PAN Card.
- Registered Office proof.
- Bank Account.
Checklist required for Sole Proprietor
- PAN Card
- Name and address of business.
- Bank Account
- Registration under the Shop and Establishment Act of the respective state.
- Registration under GST, if the business turnover exceeds Rs.20 lakhs.
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