A sole proprietorship is the most common form of business used by micro & small businesses in the unorganized sector. A proprietorship business is easy to start & has minimal operating regulatory compliance. As its name suggests proprietorship business is owned, controlled & managed by one person. It is most suitable for unorganized & small businesses because it does not provide benefits such as limited liability, corporate status, separate legal entity, etc.

Easy to Establish & Cheap : Proprietorship requires minimal registration compliance & therefore cheaper to incorporate.
Sole Decision Maker : Since, there is only one person who controls & manages the affairs of proprietorship; it is easier to operate a proprietorship. So, there is no requirement of a board meeting or approval, etc.
Name of Business : A proprietorship can choose any name as there is no requirement of registering its name as long as it is not infringing any trademark.
Single Owner & Profits : Proprietorship can be registered & operated by one person. So, it is a natural corollary that he is the sole owner of all the profits earned by the proprietorship.
Exit Plan : Since, there is no separate identity of Proprietorship there is no formality of winding up or closing proprietorship. It can be closed down by just canceling the registrations obtained in the name of the proprietor.

Step 1: Identifying a way of establishing Sole Proprietorship: Legal Suvidha Expert will advise you on the best way of establishing the identity of proprietorship & opening a bank account in the name of the business on case to case basis as there is no specific way of incorporation.

Step 2: Registration: After selecting a suitable name, the identity of the Proprietorship can be established by taking GST registration or SSI/MSME registration.

1. Aadhar card of proprietor

2. PAN Card of proprietor

3. Bank account

4. Registered office proof – if Rented Property then, Rent Agreement & NOC from Landlord but if self – owned property then electricity bill or water bill.