A sole proprietorship, also known as the sole trader, is the easiest the simplest business form, due to lack of government intervention. It is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work 'alone'—it is possible for the sole trader to employ other people. It is mostly common form of business in India, utilized by small businesses operating in the unorganized sectors.
Registration of Sole Proprietorship
The sole proprietor doesn’t require any specific registrations. However he is advised to obtain a few registrations to make his business function smoothly.
1) Registering as UDYAM (MSME)
2) Shop and Establishment Act License
3) GST Registration, if applicable
Advantages of Sole Proprietorship
● Maximum Privacy
● Sole Ownership
● Establishing and operating business is simple
● Increase in Creditability
● Reduction in Compliance burden
● Promotes Entrepreneurship
