A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started.
A Proprietorship business needs no registration. Therefore, it is one of the easiest to start with no formalities. However, after starting up the Proprietorship, it is relatively harder to open a bank account or obtain a payment gateway in the name of the business - since more registrations may be required.
Since the name of a Proprietorship is not registered, a Proprietorship can choose to have any name.A Proprietorship with less than Rs. 2.5 lakhs of income is not required to pay any income tax, as Proprietorships are taxed as the individual owing the business.