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Introduction

Proprietorship Concern is one of the most common and oldest forms of businesses in India. It is a one man organization where a single individual owns, manages and controls business. The most important feature of proprietorship concern is that it is very easy to start. There is no mechanism provided by the Government of India for Registration of a Proprietorship Concern.

The Sole Proprietorship firm enjoys some benefits like no registration or agreement is required to start and easy to close. Sole proprietorship is basically a different you, it acts through you, from you and under your name. On the other hand sole proprietorship does not provide some other benefits such as independent existence, transferability, separate legal entity, limited liability etc.

There is no formal procedure in India to register a sole proprietorship, as a sole proprietorship is considered to be an extension of the Proprietor. Therefore, the existence of a sole proprietorship business can be established only through obtaining PAN card of Sole Proprietor and opening a Bank Account in the name of your Sole Proprietorship businessor obtaining licenses required for conducting the business. To start a Sole Proprietorship, all you need is your PAN card and a bank account in the name of your Sole Proprietorship business.