What is a sole proprietorship?

The simplest type of business structure in India is the sole proprietorship, which requires little setup work and is not subject to any particular laws. A business owned and operated by one person is known as a sole proprietorship. There is just one person in charge of managing and making decisions for the company. However, the lone proprietor will be responsible for any business losses due to their limitless liability.

What documents are required to register for it?

The documents required for this are quite short and are as follows:

Office evidence with an Aadhar card

Bank account

PAN card registered

Completing the following registrations is also necessary:

Registrations, such as the GST registration,

The SME Ship and Establishment Act licensing.

Which paperwork is needed to start a bank account?

You need to provide evidence of your registered office address and verification of your sole proprietorship business in order to open a current account. The sole proprietorship firm’s existence can be verified by a Shops and Establishment Act license, GST registration, or MSME registration.

Conclusion: One individual can create a sole proprietorship firm with ease. To get it incorporated, a minimum level of conformity must be met. This type of business is cost-effective since it requires less capital to launch than an LLC or corporation.