Sole proprietorship is one type of business where the business owner is the master and slave of their venture. The business owner has the complete creative and financial control over the company and takes sole ownership of the profit and loss as well. This method is best suited for individuals who wish to start a business based on one-man work in a small scale. One of the most important feature of a Sole Proprietorship is the ease of its formation. No agreement is required to be made and registration of the firm is also not essential. However, the owner may be required to obtain a license specific to the line of business from the local administration. The owner of the Sole Proprietorship has a complete control over all the aspects of his business and it is he who takes all the decisions though he may engage the services of a few others to carry out the day-to-day activities.
Starting a sole proprietorship is simple as compared to other form of Companies. Unlike, LLP or other private or public companies, in sole proprietorship, there is no requirement of filing an application before the ROC. Further, there is no requirement of a formal registration of a sole proprietorship. A person is simply required to open a bank account with the name and style and take license for varied services including service tax, VAT, IEC, Shops and Establishment License, PAN, Importer-Exporter Code, ESI, Professional Tax, Central Excise Duty, CST Registration, etc. After, obtaining the requisite license, a person can commence with his/her sole proprietorship firm in India.
