Easy registration

Because the sole proprietorship is the same as the Proprietor, there is no official incorporation or dissolution process. To establish a business, however, the proprietor may need to secure specific registrations and licences to comply with Indian laws and regulations. Besides, the rest of the things are simple.

Lower compliance

Because most sole proprietorships are registered with government offices such as the IRS and the GST, the compliance load will be reduced. Entities such as LLPs and companies, on the other hand, must register with the Ministry of Corporate Affairs and file several statutory filings as well as be audited by a Chartered Accountant each year.

Simplicity

Because there are no partners, shareholders, or directors, the owner may run the firm with little paperwork and approval. As a result, this company form is best suited for relatively small companies.

Business decision

In a proprietorship, the business owner makes all the choices. No one else’s consent or approval is necessary. As a result, a business owner may usually make swift judgments about his operations.

Complete control

Because a sole proprietorship is held only by the proprietor, the proprietor has complete control. He or she has entire authority over the company’s assets, income, costs, and operations.

The owner must be an Indian citizen and should reside in India. No approval is required before the start of business. However, Non-Resident Indians (NRIs) and individuals from India can invest or set up their businesses only with prior approval from the Government of India (GOI).

To open a bank account for a Proprietorship, the proprietor must submit two forms of registration for the Proprietorship firm, besides the Proprietor’s PAN Card, identification evidence, and address proof. To register, one or both follow these two forms of registration: service tax registration, MSME registration, VAT/TIN/CST registration, Shop & Establishment Act registration, Professional licence, Chartered Accountant certificate, or others as specified by the RBI Know Your Customer guidelines.

Even after registering as a sole proprietorship, the identity of the owner or the company is not separate. Thus, the Proprietor and owner’s PAN cards are the same. Also, the proprietor and the proprietorship’s assets and liabilities remain identical.

A sole proprietorship can be taken over by a company or an LLP. However, the methods for doing so are time-consuming, costly, and inconvenient. As a result, after consulting with specialists, many entrepreneurs might consider forming an LLP or Company rather than a sole proprietorship.