Sole Proprietorship Registration

Advantages of Becoming Sole Proprietorship Registration

Easy to start business with less legal formalities

A proprietor can easily start the firm by taking the registration under any Act as mentioned above by following minimum legal procedures.

Minimum set-up cost

The registration cost of a proprietorship firm is very less as compared to other entities such as Partnership Firm or Limited Liability Partnership or a Company.

Enjoys sole decision power

The proprietor is the sole owner of the firm; hence he/she will be the sole decision-maker in the firm. The functions can be easily carried on independently.

Minimum compliance

There are no specific compliances to be carried on by a proprietorship firm. If the Act under which it is registered provides any compliance then one has to comply. For E.g. if the firm is registered under GST then it has to file GST returns.

Less maintenance cost

The proprietorship firm is a type of business with minimum compliance at minimum cost. Hence, one can more focus on carrying on their business rather than worrying about the compliance part to avoid penalties..

Simple taxation

The proprietorship firm is not a separate legal entity; it is dependent on the proprietor. The PAN of the proprietor will be considered as the PAN of the firm. Due to which the income of the firm will merge with the income of the proprietor hence there is no need to file a separate income tax return of the firm.