Sole Proprietorship

Overview

A sole proprietorship is one person trading in their own name. There is nothing to incorporate — the business begins when you begin, on the strength of whichever registrations your activity requires.

It is the cheapest and fastest way to start, with complete control and almost no recurring statutory filing. Business income is taxed in your own return at individual slab rates, which is often an advantage in the early years. In law the proprietor and the business are the same person, so liability is personal and unlimited.

What you actually need depends on what you do — GST registration, Udyam, a shop and establishment licence, a professional tax registration, a current account in the trade name. We work out which of those apply, get them in place, and tell you plainly at what point the personal liability is worth converting away from.

Why choose this

Benefits of Sole Proprietorship

• Fastest way to begin

  Trading can start on the strength of the registrations your activity actually requires, with no incorporation step.

• Lowest setup and running cost

  No incorporation fee and very little recurring statutory compliance.

• Complete control

  Every decision and all the profit rest with one owner.

• Simple tax position

  Business income is taxed in the proprietor's own return at individual slab rates.

How it works

1. 01

   Activity reviewed and required registrations identified

2. 02

   Trade name and place of business confirmed

3. 03

   Documents collected

4. 04

   Registrations filed — GST, Udyam and others as they apply

5. 05

   Certificates handed over

6. 06

   Current account documentation prepared