A sole proprietorship is a type of entity much distinct from a partnership or a one-person company [OPC]. A sole proprietor is not a legal entity and the liability of the business rests with the proprietor himself. There are flexible work hours besides the fact that the proprietor is charged for the business from his own personal account making it a direct tax on what the business earns. These types of businesses require ample amount of monetary resources along with local licenses approving the owner to start his business.
1) Unlike the One-person company that requires registration under the Companies Act, 2013 as per the Ministry of Corporate Affairs [MCA], Rules, A One-person company does not require any such registration.
2) It is not considered as a separate legal entity.
3) Unlimited liability
4) Maximum 1 person
5) Comes to an end on death or retirement of the owner
6) Annual filings with the registrar of companies
1) A Bank Account on firms name
2) Tax Registration such as for GST
3) Local registration such as that of a Shop Act License or ITR -4 or MSME certified by a Chartered Accountant.
4) Choosing of a unique name (In compliance with the Trademark Act, 1999)
5) A Business Address Proof such as the rent agreement copy or electricity bill + NOC
6) Other Documents such as KYC
7) Payment of Government fee
A sole proprietorship firm, due to its nature, requires tons of formalities and registrations and/or approvals in order to kick start the new venture. We understand our clients priorities while starting from the scratch and assist in the above areas of documentation and government approvals, making the entire procedure hassle free.