Sole proprietorship, sole trader, individual under ownership, or proprietorship are all synonyms of each other. Sole Proprietorship denotes a type of enterprise which is run by one person. The word itself explain the meaning where Sole stands for Only one entrepreneurship stands for ownership. Help, it is owned, managed, And control by a single person. All the business activities are operated by an individual and Hence the person is called sole proprietor or a sole trader.
The characteristics of a sole proprietorship are
1. Single ownership
2. One Man's capital
3. One man control
4. Of profits as well as loss
5. Almost no legal formalities
6. Unlimited liability.
All the assets and properties belong to the proprietor in assort proprietorship so he or she there's all the risk associated with the enterprise. He bears all the losses incurred as well as games all the profits in the business. There is one big disadvantage and that is unlimited liability, so in case of any loss A sole trader would be the only person who will bear all the liabilities and the personal assets of the sole trader will also be used to discharge any debts or liabilities. One can easily establish the business of proprietorship as it does not need any prior registration process and there are no such formalities and requirements that need to be fulfilled to open the business of proprietorship. There are almost nil legal requirements that are needed for the formation, operation, and closure of a proprietorship business. However, one can obtain a certificate of registration by registering it with the local self-government. A sole proprietor has all the control over the business and he is in charge of every activity going on, a sole trader text all the decisions as well as execute them however he wants.
Even if there are limited resources, limited size, unlimited liability, lack of continuity, and limited managerial ability there are still many benefits or merits of a sole proprietorship. A proprietorship is easy to form and easy to close. It gives the trader better control and he has flexibility in operation. In the case of decision making, it is quick and prompt, and the trader or proprietor can maintain the business secrets easily. There is close personal retention and it has direct motivation for the business too.
To register for a sole proprietorship, The documents required are Aadhar card, PAN card, bank account, and registered office proof. Even if the sole proprietor does not need any registration, to be on the safer side it is advisable to have your registration for a sole proprietorship. One can register it as small and medium enterprises under the MSME act. Or octane I shop and establishment act license, this license is not mandatory in all places and it depends upon the local laws. It is issued based on the number of employees by the municipal party. A sole trader can register themselves under GST if their annual turnover is Rupees 20,00,000 or more. A soul reader will also require a GST number if they are conducting online business. To register under GST one should have an Aadhar card, PAN card, and a photo of the proprietor. Electricity bill and rent agreement is also required as the proof of business place, the proprietor will also need to provide a bank statement copy to register under GST. All this can be done through the GST portal and the proprietor will receive the GST number within 4 days of applying for registration under GST.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.