A sole proprietorship is one of the common forms of business in India other than One Person Company, Public and private limited companies. In this kind of venture, one individual is responsible for carrying out the entire company’s business operations. The business owner has complete freedom to involve others in the day-in and day-out procedures if he chooses to do so. Unlike a one-person company, this form of business has fewer compliance obligations. In terms of cost, incorporating a sole proprietorship business is less expensive than an OPC.
Proprietorship Registration, however, should be done with proper planning because there are no set rules. Hence, it would be wise to consult experts on other necessary permits, which could increase the legal capacity of the business. A general rule of thumb is proposing those with little capital and insufficient time to establish the business venture as a sole proprietorship.