A sole proprietor is a person who is the business owner, has complete control and keeps all the profits and is liable for all the losses from the proprietorship.

A sole proprietor business has the following benefits-

• Easy to start.
• Easy to manage.
• No Profit- sharing .
  
• Privacy of Business.
• Complete authority and power.
• Lesser compliance and taxation.
  

Mentioned below are the documents required for sole proprietor registration:

• Aadhar card.
• PAN card.
• Proof of Business.
• Address Proof (Sale Deed/ Rent Agreement/ Utility Bills).
• Bank Account Details.
• MSME Registration (if any).
• GST Registration ( if turnover is above GST threshold limit).
  

Yes, capital is required for any form of business. A sole proprietor can infuse the capital into the business and start working.

No, a sole proprietor business does not have perpetual succession. It will immediately end the moment proprietor is deceased or becomes insolvent. Still, rights, liabilities, and legal responsibilities are passed on to the legal heir.

It usually takes four to five working days for a sole proprietorship business to get registered.

Yes, a no-objection certificate (NOC) is required if the sole proprietor is not the owner of proprietorship business premises.

Yes, you can use any name for your sole proprietorship, but that should not have been restricted for public use by the government. Also, it should not be violating the trademark of any person. If you want it to be unique and keep the authority to use the name for yourself, get the name of your business trademarked. Also, make sure not to use any extension like Pvt. Ltd., LLP or Ltd. Etc.

No, there is no specific law governing the proprietorship in India. All the general business laws apply to them.

A proprietor of the sole proprietorship should file its income tax returns regularly. Also, if it is GST registered, then GST returns must be filed on time and at intervals as prescribed.

MSME Registration is for micro, small and medium enterprises. It is diversified under three main categories: manufacturing enterprises, trading, and services businesses. MSME registration is essential for any business to start and operate in India legally. Once you are registered, you get an MSME certificate. One can easily register themselves in various government portals if they have MSME registration.

No, a sole proprietor doesn't need to get its business registered. It is an optional exercise to get a registration. However, for opening a bank account in the name of the sole-proprietorship business, it is required as proof of the legal existence of a business.

A sole proprietorship under its own will can get a certificate of micro, small and medium enterprise after MSME registration. Although it is not compulsory for a sole proprietorship, it is advised because of the benefits of certification as an MSME enterprise.

No, you don’t have to be physically present during the whole process; it is online. The only time you will be involved is to get a few OTPs and documents as and when required.

As a sole proprietorship is the most common form of business, and you have full authority on how to run the business, it is found everywhere around us. The businesses that are suitable for a sole proprietorship are retail trading and manufacturing, small-scale businesses, etc.

Any person who owns and runs the business can be a proprietor. There is no legal procedure to be a proprietor. Registration of a proprietorship firm is not mandatory.

Yes, as a sole proprietorship owner, you can draw or transfer money from the business bank account to your personal account as and when required. So you can draw a salary as a proprietor.

Yes, you will have an option to convert a sole proprietorship business to a company, firm, or LLP after following the legal procedure required as per the law related to the firm, LLP, or companies.

GST means goods and services tax; it was introduced in 2017 to remove all the other value-added taxes and impose a single tax to avoid cascading taxes. Any person who is registered under GST is provided with a 15-digit PAN-based unique code known as GSTIN. 

GST registration is mandatory for every establishment that crosses the annual turnover threshold limits or engages in interstate business transactions. If a sole proprietorship crosses the threshold limits and is involved in exports or interstate business transactions. In that case, the proprietor must take GST registration within 30 days from the day of liability.

There is no common portal or book of registration to check a sole proprietorship status. There is no statutory act governing proprietors. However, you can check the legal existence of a sole proprietorship through its GST or MSME registrations and shop & establishment act license.

Yes, as a sole proprietor, you are the business owner, but you need employees to run and manage the business. Also, there are no restrictions while hiring employees except for getting registrations and compliance done with various departments as and when the threshold limit for eligibility is crossed.

No, a sole proprietorship business does not have a separate legal existence as a person. Therefore, it cannot have a separate PAN card. Everywhere, the PAN of the owner or proprietor will be used for business purposes. There is no need for a new PAN for any number of proprietorships a person owns.

The liability of a sole trader or sole proprietor is unlimited as he is the only person managing and owning the business. Also, there is no legal differentiation between the proprietor and the business.

A proprietorship is the most common form of business establishment across India. There is no legal separation between the proprietor and the sole proprietorship. The business and proprietor are considered the same in any case or on legal grounds, even though a proprietorship firm can open a bank account in its name. Still, it requires proof of business as per the MSME or GST act in most cases.