A sole proprietorship is a type of entity which is owned, controlled and runned by one person. There is no requirement to register sole proprietorship firm. The sole proprietorship firm has no separate legal entity and hence sole proprietor (person) is personally liable for all activity done by sole proprietorship firm. Proprietorship firm is most common type of entity for doing business in India and is best suited for small business setup as it has least compliance to be complied with.
The average time to complete process for sole proprietorship registration is 5 – 7 days. A sole proprietor may use a trade name or business name other than his/ her name. They may also apply for trade mark for name being used for doing business.
Benefits of Sole proprietorship registration
- Easy to establish
- Lesser statutory compliances
- Full control of owner
- Complete owner control
- Easy to close/windup