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Frequently asked Questions
Registration typically costs ₹1,999 to ₹5,000, including government fees for GST, MSME or Shop Act registrations, plus professional charges, depending on services required.
A sole proprietorship is an unregistered, unincorporated business operated by one single proprietor with no separation between the owner and the business. The sole proprietor gets all the profits but also bears the debts, losses and liabilities of the business.
GST is mandatory only if your annual turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services) or for interstate trade, e-commerce or reverse charge cases.
The PAN card is not given to the sole proprietorship firm since it lacks a separate legal existence such as that of a company. A sole proprietorship business is attached to the proprietor/business owner. Therefore, the owner/proprietor is free to utilize his/her individual PAN for the sole proprietorship business.
There’s no fixed minimum tax. Income is taxed at personal slab rates. If profits exceed ₹400, presumptive taxation (e.g., Section 44ADA) may apply, with deductions available.
A sole proprietorship, although easy to establish, has a number of shortcomings, such as unlimited personal liability, hard time raising capital, limited scope for expansion and a lack of business continuity in the event of the owner's inability to carry on.
Generally, a sole proprietor gets one GST number. Multiple numbers are possible only for distinct businesses in different states, registered separately.
A sole proprietorship is simpler and cheaper but has unlimited liability. An LLP offers limited liability, credibility and scalability, ideal for growth-focused ventures.
Examples of sole proprietors include business consultants, landscapers, freelance editors, electricians, computer repair individuals, tutors, financial advisers, photographers and social media professionals. A sole proprietor is simply anyone who is the owner of an unincorporated firm.
