A sole proprietorship requires registration under different law, such as the license under Shops & Establishments Act (for all office establishments), Professional Tax (for employer & employee both), GST registration (for traders & manufacturers and service providers with a turnover of exceeds Rs. 40 lakh in the preceding Financial Year ), MSME registration (for small- and medium-sized manufacturers and service providers) or an Importer-Exporter Code (if you’re in the import or export business, of course).

Low Compliance Cost: There is no requirement for compliance as like Private Limited Company. Private Limited Company incorporation cost around 10 to 15 thousand, but sole proprietorship business not required such cost for start up of new business. Audit is applicable, if the gross receipts/turnover of the proprietorship entity exceeds the amount of Rs. 2 Cr. No requirement to file any annual return as like in Private Limited Company.

Very Flexible: Under the proprietorship business you can simply pay tax at 8% of your Turnover/Gross Receipts, if the Turnover/Gross Receipts are not exceed the amount of Rs. 2 cr. in during the previous financial year.

Easy to Start: Private limited companies take 10 to 15 days in incorporation, but proprietorship does not require much investment of time to put the things in order. For startup of proprietorship no need to get the name approval from any authority likes MCA.

Control: As the sole owner of the business, you have complete control over all the operations, and you get to make all the decisions. You don’t have a Board of Director’s, shareholders, or other owners to answer to.