It is a form of one man army business and is the most common way to start a business in India
because of its easiness and no registration expense, minimum administration cost and minimum
level of formalities. A sole proprietorship is not a separate legal entity, and is sole responsible for the
debts incurred by him. It means the sole proprietor has unlimited liability unlike the Limited liability
Partnership or Company. Proprietorship does not have perpetual succession as it comes to an end
when the proprietor cease to exists.
Registration of Proprietorship is not necessary in any act except specially required e.g. for opening
of Current account. Proprietorship can be started by registration of the firm in the Service Tax act if
the proprietor is engaged in service industry, in VAT if it is engaged in Trading of Goods, MSME act,
Shop and Establishment Act.
Time period : 4 to 6 days
(subjected to the
processing time taken by Department)