A sole proprietorship is a business model where one individual owns and operates the business.
Registration is not required by law, but it is advisable to register your business for legal and financial clarity.
Yes, you can transition your sole proprietorship into a different structure, like a partnership or a private limited company, as your business grows.
The business income is taxed as personal income. You’ll need to file your taxes accordingly.
A sole proprietorship is managed and owned by one person, while a private limited company is a separate legal entity with its own identity.
Yes, you can hire employees, but you’ll be personally responsible for managing their salaries, benefits, and tax deductions.
Depending on your business type and location, you may need to obtain specific licenses or permits to operate legally.
While it’s possible to use your personal account, it’s recommended to open a dedicated business bank account (current account) to keep personal and business finances separate.
As the sole proprietor, you face unlimited personal liability, meaning your personal assets could be at risk if your business incurs debts or liabilities.
There’s generally no minimum capital requirement, but certain business types or industries may have specific capital needs.
Yes, you can run multiple businesses under one sole proprietorship, provided each business complies with relevant laws.
To close a sole proprietorship, you’ll need to settle outstanding debts, inform the relevant authorities, and cancel your business registration.