Sole - Proprietorship

A sole proprietorship is the simplest form of business structure in India, owned and operated by a single individual. It requires minimal formalities and is not considered a separate legal entity from its owner. In a sole proprietorship, the owner assumes full responsibility for all aspects of the business, including finances, operations, and liabilities. While easy to set up and manage, a sole proprietorship offers no distinction between personal and business assets, meaning the owner is personally liable for any debts or obligations incurred by the business.

Sole Propertier Registration

What Is Sole Proprietorship

  • It is the most common type of business enterprise in India.
  • The business is run by an individual.
  • It is solely controlled by the person who owns the enterprise.
  • It is suitable for individuals providing professional services and for micro-enterprises and small businesses.

Who Is a Sole Proprietor

  • The owner of the proprietorship enterprise is called a sole proprietor.
  • The enterprise and the owner are one
  • The liability of the enterprise is solely of the sole proprietor

Benefits of sole Proprietorship

  • Easy to establish.
  • No regulatory hassles.
  • Easier business Income Tax filing through ITR 3.
  • Simple to wind and close enterprise.


  • Our Chartered Accountant will help in ease of business by guiding you through key registrations for your enterprise. Your Earendil Chartered Accountant will be your single point of contact for registration assistance and for all other services that we offer.
  • Our motto is “You only do what you do best; to us, leave the rest”. We assure that once we start our relationship, you wouldn’t have to think about the areas which we handle.
  • We want you not just to Start your Business, but also to Run Your Business. With us, your first month of compliances such as TDS and GST, if applicable, are free to ease you into your business.

Key Registrations

Udyam registration is made with the Ministry of Micro, Small, and Medium Enterprises to obtain Government benefits and funding benefits provided to MSMEs.

It is made with the Income Tax Department for Tax Deduction at Source (TDS) where the proprietor has employees and pays salary. Also, TDS to be deducted wherever the sole proprietor receives services from third parties.

It is a must if the yearly profit exceeds the prescribed limit. For service-oriented firms, the prescribed turnover limit is Rs.20 lakh and for firms which sells commodities, the prescribed turnover limit is Rs.40 lakh. It is suggested to register for GST as it helps while seeking funding from banks as it is a valid indicator of sales made. Moreover, prominent companies prefer buying from GST complaint entities so as to get GST input benefits. GST Registration is a valid ID proof for financial transactions.

IEC is mandatory if you plan to import/export goods/services. Registration to be done with DGFT.

Opening a sole proprietorship current account helps in the flexibility of money transactions. You can open a current account from the bank along with GST registration of the same.