Advantage of Sole Proprietorship

About Sole Proprietorship: A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business.


The sole proprietorship is the “One Man Business Entity”. It is owned, controlled and managed by a single person called the proprietor. The proprietor owns the business in his name under his PAN number. He is personally liable for his debts. The sole proprietorship and proprietor are the same thing.





Advantage of Sole Proprietorship

  • The Proprietor will be legally recognized as a Supplier of Goods & Services
  • The proprietor can claim the Input tax credit (tax paid on the purchase of goods & services)
  • The proprietor can pass on the credit of the taxes paid on the supply of the goods & services to the purchaser.
  • He can make Interstate sales without restrictions. The proprietor can have a competitive advantage in comparison to other businesses.
  • Small businesses ( having a turnover of less than 1 crore) can opt for a composition scheme to lower their taxes.
  • In GST, the number of compliances is less as it has replaced all other indirect taxes.

Documents Required for Sole Proprietorship

  • Aadhar Card & PAN Card
  • Bank Account Details
  • Registered Office Proof
  • Rent agreement and NOC from a landlord. (If Rented property)
  • Electricity bill or any other address proof. (If self-owned)


One-stop solution to all your tax-related queries

Online GST Registration | Online GST Return Filing | Online Company Registration | Online Sole Proprietorship Registration

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