Most frequent questions and answers
Sole proprietorship is a business run and manage by a single person, any Person who wants to start a business with minimum or less investment can start sole proprietorship.
No, Sole Proprietorship Registration is not mandatory under any law.It is optional on
whether a person intends to register his sole proprietorship or not.
Yes, sole trader is personally liable for their sole proprietorship debts or legal Discernment against business. There is no difference between business assets and personal assets.
Yes, you can use any name for your proprietorship. You may use your name or same other business name unless the trademark registration is obtained.
No, you can’t start sole proprietorship with more than 1 person, a sole proprietorship can have only one owner.
Yes,a sole proprietorship firm will be converted to a private limited company, First, you will have to incorporate a new Private Limited company and then take over the business of the sole proprietorship trough MOA and transfer all assets and liabilities to the new private limited company.
This is the simplest form of business entity. In a sole proprietorship only one member owns and control all activities of the business, so he can handle all activities efficiently in small business.
To register a sole proprietorship, only few documents are required i.e., Sole trader all kyc documents and Registered office proof.
Unlike companies, Sole Proprietorships are not governed by any specific law, Proprietorship required to comply with very few compliances depend on registrationtaken by a particular sole proprietorship.
Sole proprietorship is best because it is very simple to start and there is no ROC or legal filings to start the business, no compliance burden, etc., In the case of time and money, proprietorship that can save both.