The sole proprietorship popularly known as the sole trader is the simplest business form which owned and run by single owner and there is no legal distinction between the owner and proprietorship. The sole trader receives all profits and is personally liable for its debts, Loans, loss, etc.Sumit kumar
1) Easy to Form:
The best part of Sole proprietorship is an easier to deal with in terms of expenses and taxes. Opening a proprietorship business do not require registration and the business can be started without any registration. Sole proprietors are also not required to file any Memorandum and articles of association or statutory reports when they start businesses.
2) Complete control:
As we know there is only one owner in sole proprietorship, the owner controls everything in the business. All the business decisions taken by owner and does not have to seek the approval of a directors, members, officers or shareholder which is required in the case of LLP, company or partnership.
3) Easy tax filing:
In a company, LLP or a partnership, the business entity and owner have to file their tax returns separately for the income that they received from the business. The owner of the sole proprietorship is not considered separate from the business. It means all the income of the business is taxed on the owner's personal tax return.
4) Minimal Compliance:
A sole proprietorship is subject to follow least government and regulatory agencies rules and regulations. The proprietorship do not pay corporate income taxes. The paperwork required is much less than other business entities. Thus, proprietorship can operate easily.
5) Low capital:
No large amount of capital is required to open a proprietorship and this form of business structure is appropriate for those having less capital requirements.
GST Registration is essential if you want to sell goods on the ecommerce portal. GST Registration is a must for anyone becoming a seller over the internet and must be obtained from Goods and Services Tax Department. Indiastartupbiz can help you obtain GST registration in India.
In case of Proprietorship, GST registration must be obtained first to open a current account with any bank of your choice in the name of the Proprietorship. Opening of current account is essential to list on the ecommerce portal.
Shops and establishment license:
Shops and establishment can be done online with help from various entities. The Application for shop and establishment must contain the proprietor’s name, name of the business, address of the business and other relevant details. However, the requirements of this tax vary from state to state.
Document required for online Business
1. PAN and Aadhar card of proprietor
2. Address Proof of Proprietor
3. GST Registration
4. Current Account
5. Shops and establishment license, if required