Sole Proprietroship

Start Your Sole Proprietorship Today with 24efiling 

Be your own boss with a sole proprietorship, the simplest business structure for individuals. 

What is a Sole Proprietorship? 

A sole proprietorship is a business owned and operated by a single individual. It's the most straightforward business structure to establish and manage, making it ideal for entrepreneurs starting their ventures.

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Benefits of a Sole Proprietorship: 

  • Simple and Fast Setup: Minimal paperwork and formalities compared to other structures. 
  • Complete Control: You make all decisions and keep all profits. 
  • Pass-Through Taxation: Business income is reported on your personal tax return, avoiding double taxation. 
  • Low Cost: Formation and maintenance fees are typically lower than other structures. 

The Process of Setting Up a Sole Proprietorship: 

  1. Choose a Business Name: Ensure it complies with state regulations and conduct a name search. 
  2. Obtain Necessary Licenses and Permits: Research licenses and permits required for your specific industry and location. 
  3. Obtain an Employer Identification Number (EIN) (Optional): While not mandatory, an EIN simplifies tax filing and opens up business banking options. 
  4. Register your business (optional in some states): Check your state's requirements for registration. 

 Drawbacks of a Sole Proprietorship: 

  • Unlimited Liability: Your personal assets are at risk for business debts and liabilities. 
  • Limited Growth Potential: Expansion might be hindered due to limited resources and funding options. 
  • Taxation: Self-employment taxes apply, including Social Security and Medicare. 

 Documents Required for successful sole proprietorship registration 

The documents required for registering a sole proprietorship in India are as follows: 

  • Aadhaar Card: Aadhaar number is now mandatory for applying for any registration in India.  
  • PAN Card: You cannot file your income tax return until you get a PAN.  
  • Bank Account: After you have got your Aadhaar Number and PAN, you can visit any bank for opening an account with them.  
  • Registered Office Proof: 
    • If it is a rented property: Rent agreement and NOC from a landlord. 
    • If it is owned property: Self-declaration and property papers. 
  • Optional Registrations: 
    • Registering as SME: You can get yourself registered as a Micro, Small and Medium Enterprise (MSME) under the MSME Act. 
    • Shop and Establishment Act License: This is required if your business employs more than 10 people and has a turnover of more than Rs. 10 lakh per annum. 
    • GST Registration: This is required if your business turnover exceeds Rs. 20 lakh per annum. 


Anyone with the capacity to enter into a binding contract can generally form a sole proprietorship. However, specific licensing requirements may apply depending on your industry and location. (contact 24efiling experts for full detail) 

Why Choose 24efiling for Your Sole Proprietorship Formation? 

  • Streamlined Process: Our certified authorities will  guide you through each step effortlessly. 
  • Compliance Guarantee: We ensure your formation documents meet all legal requirements. 
  • Fast Turnaround: Get your business registered quickly and efficiently. 
  • Expert Support: Our dedicated team is available to answer your questions and address your concerns. 

Ready to turn your dream into reality? Start your sole proprietorship journey today with 24efiling! 

Click the button below to get started! 


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While not mandatory, consulting a lawyer can ensure compliance and address legal concerns.

Business income is reported on your personal tax return as self-employment income. 

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