A Sole Proprietorship Registration is an unincorporated business owned by one person.It is not a separate legal entity, like a LLP or a company.No legal formalities are necessary to create a sole proprietorship.
In sole proprietorship the owner is in direct control of all elements and is legally accountable for the finances of business and this may include debts,loans,loss,etc.The owner receives all profits and has unlimited responsibility for all losses and debts
Sole Proprietorships are only recognised via their government and tax registrations, so the extent of their compliance is limited to the annual filing of their service, professional or sales taxes.
A sole proprietorship could take 15 days to start if all you need is a GST registration. Either way, the process is uncomplicated. PAN card and identity and address proofs are enough to get them done.
A Sole Proprietorship is inexpensive as compared to a One Person Company (OPC) and, thanks to the minimal compliance requirements, is inexpensive even over the long-term. You would not need to hire an auditor, for example. This is why, despite its severe shortcoming (unlimited liability), small merchants and traders opt for it.
