The sole proprietorship is the legal form of corporate; is one of the simpler and less burdensome as to its constitution does not require no special requirements; the only thing to do is to open a VAT number. The sole proprietorship is the kind of company that refers to a single owner that is the entrepreneur who is therefore the only responsible and also the only promoter of his business venture. The entrepreneur does not impose a minimum amount of initial capital to invest. Since he was the only "responsible" of the entire entrepreneurial process, it is clear that the business risk falls all over him. This means that all of the assets of the entrepreneur are subjected to business risk. In case of insolvency of the debts of the individual firm, he is liable to third parties with all his possessions, including personal.
For this reason, the sole proprietorship is usually preferred, such as legal form, when you need to perform tasks that do not require large investments that involve risks and quite limited. The sole proprietorship can also be done in the form of a family business or undertaking married.The advantages of carrying sole proprietorship in India are as follow :
- Easy to fulfill simple registration with the Chamber of Commerce (Chamber of Commerce, Industry and Crafts) in the province where is the seat of the sole proprietorship
- Speed of the timing of incorporation
- Reduced costs for the constitution
- Maintenance of corporate accounting extremely simple
- Centralized decision-making entrepreneur
- Speed, flexibility and rapid decision
- Lower operating costs
Steps How to Start a Sole Proprietorship
Starting a sole proprietorship is very simple as compare to other form of companies. Unlike to LLP or any other private or public companies; in sole proprietorship you do not need to file an application to ROC. If we consider about sole proprietorship registration India then you only need to choose name, open bank account and take license for varied services including Service Tax, VAT, IEC, Shops & Establishment license, PAN, Importer Exporter Code, ESI, Professional Tax, Central Excise Duty, CST Registration, Employee Provident Fund Registration and many more. After getting the respective licenses as per the sole proprietorship business; one can commence with his her sole proprietorship firm in India.