Why should you get sole proprietorship registration in India?

Sole Proprietorship Registration in India has value regardless of how many better business entities are out there. There is a certain sense of freedom behind this infrastructure that those who wish to do business on their own appreciate. This article lists the reasons you should start a sole proprietorship in India.

Starting a business is not easy because the decisions that you must take beforehand are many. To do business, you need a business infrastructure. And to choose a business infrastructure, you need to make decisions regarding the following:

  1. How many people do you want to enter the business with?
  2. Do you want to start the business on your own?
  3. What good can come from starting a solo business venture?

Related Service: Partnership Firm Registration

Getting answers to these questions gets easier when you decide to get started on your own. And when you do, you get two options before:

  1. Start a One Person Company and run your business with a stable but contained infrastructure
  2. Or, set up a sole proprietorship firm and achieve growth in a way that’s never been seen before. 

For many, it is not easy to choose an OPC, for the compliance chains it puts around them can choke their desire to be an entrepreneur. That’s why most of them choose to get proprietorship firm registration.

But is it the only reason? Or, are there most substantial reasons behind choosing an unregulated, unbridled and unchained business entity?

Let us find out.

Proprietorship Registration is the easiest

All business entities are bound by forms and compliances. Well, all except for one, a Sole Proprietorship firm. Requiring no incorporation, no forms and no regulatory authority, it is a form of infrastructure that you can establish by sheer force of will. While there are some legal measures you need to take, none of them will bind you in any way.

Simply put, there is no Sole Proprietorship Registration online method under any law. If you want to start your business, register with the GST department and get started.

It is a cost-efficient business entity

People say that your first business entity should be without any cost. And Sole proprietorship registration won’t cost you anything. Being a non-legal business entity with no law governing it, a proprietorship firm removes all your worries about price. So, you won’t feel the pressure of paying any sole proprietorship registration fee.

You are not separate from your entity

Separate Legal Entity is a buzzword that rings with most business entities. Sole Proprietorship is the exception. You yourself are the proprietorship firm. The Sole proprietorship liability is yours to carry, but so are the assets. Because the losses of your business directly impact your personal assets, you wisely make business decisions to keep yourself afloat.

No need to tell the world about your profits and losses 

You can grow securely when you don’t feel like people are judging you. And judge they do, when they have access to your financial information. But you won’t need to worry about that when you have proprietorship firm registration. Online information about your finances won’t be available and you can safely evolve your business without the arbitrating eyes of the masses.

Make every decision on your own

You can quickly expand your sole proprietorship firm. The reason behind it is you only have to listen to your wisdom when making business decisions. With no partner or co-director to hold you back, you can decide your business trajectory and walk on it without a second thought.

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You won’t have to worry about getting many business Certificates (it is a risky benefit)

One of the things that often stop people from starting a company is the need for other business licenses to start a particular type of business. That’s why starting a sole proprietorship becomes a better option for them. In a proprietorship firm, not only, you do get the freedom to do any business you want, but you also do not need to obtain certain business certificates. Why is that the case?

The simple reason is a loophole. Obtaining certain business licenses requires you to establish a company. Now, as you don’t have one, but want to provide the same service as a sole proprietorship, you can start that business without any fear.

However, doing so will not help you last for long. The government of India has become stringent when it comes to business registrations. So, if you end up expanding the business for which you do not have the license, you can lose your business.

Therefore, starting a business without a license is a risky benefit that you may, or may not want to get.


No one can underestimate the freedom you gain once you obtain proprietorship company registration (Yes, it is a wrong term, but stay with me). It is a form of a “company” that does not require any registration or compliances. All you need to get started is your wit, some money and the zeal to grow. So, if you have all of them, contact Registrationwala to begin.

Related Article: How to make LLP Registration easy in India?

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