Sole proprietorship, as defined by the Govt. Of India, is a “one-man organisation where a single individual owns, manages and controls the business.”
One of the primary benefits is ease of formation, since a government registration is not required. There are no fees to be paid for starting a one-man business on your own, and there is no government regulatory paperwork and compliance to be fulfilled. There are no minimum capital investment requirements, and the proprietor has full control and ownership stake.
You get to keep whatever profit or income you generate. Furthermore, the tax benefits of sole proprietorship prevent double taxation of the firm. You will file returns and pay taxes only in your personal name. There are no separate income tax returns to be filed and no tax to be paid by the firm.
Register Proprietorship Firm can be done in 3 ways:-
1. Register under the shop and establishment Act.
2. Get aUdhyogAadhar (उद्योग आधार) under the ministry of MSME
3. Get a GST Registration
Documents needed include:
1.Pan card and ID for address proof of proprietor.
2. Business address proof (eg: electricity bill in your name, or electricity bill + registered rental agreement, etc.)
3. Two government registration documents confirming name and address of business (shop establishment license, GST registration additional etc.)
4.Passport Size Photograph of the applicant
5. Personal Bank Account Cancel Cheque or Bank Statement or Passbook Front Page anyone.