A sole proprietorship is a type of business organization wherein a business is controlled by an individual person. In general, it doesn’t need any registration. Any person who wishes to run a business with minimal investment can opt for sole proprietorship registration. The management of the business is in the hands of a single owner/proprietor.

The sole proprietorship business investment will be made by the individual proprietor. He/she bears all the business losses and also enjoys the profits. He/she controls and manages the business. He/she can appoint people for handling the business however the ownership will solely rest with him/her.

Most local businesses like parlours, grocery stores, retail stores, boutiques, etc can be started as a sole proprietorship company. Even small manufacturers and traders can set up a sole proprietorship company.

Advantages of a sole proprietorship

Business control

The sole owner who opts for sole proprietorship registration will have total control over their business. He/she will take care of all the business aspects. Since only one individual is managing the business, privacy and confidentiality can be easily maintained.

Quick decision making

The sole owner will take all the business decisions. The decision-making rests on the shoulder of an individual.  Therefore, the decisions can be made instantly and quickly without the requirement for consulting anybody.

Compliances required

You need to file IT annually. You must also file GST return if your business happens to be registered under GST. You need to deduct TDS and file a return if you are liable for an audit. 

Section 8 company registration

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.

To start a section 8 company, there should be a minimum of at least 2 directors in the company. There is no need for the least paid-up capital for these companies. You can register a non-profit organization as a Non-profit company under the Section 8 Company of the Company Act,2013 or under the Registrar of societies. If the company makes any profit, it should be used towards promoting the company objectives and not shared as dividends among its shareholders. A Section 8 Company is one and the same as the Section 25 Company. According to the new Companies Act of 2013, Section 25 has become Section 8 now.

Who can start a Section 8 Company?

A group of individuals or an individual can submit an application for Section 8 Company Registration if the company holds the intentions mentioned below. The objectives of the company require confirmation to the Central Government’s satisfaction.

  • If the company wishes to promote commerce, science, arts, research, sports, social welfare, charity, education, or environmental protection or any other objectives
  • If the firm aims to invent the income generated or the profits in the promotion of the objectives only
  • When the firm doesn’t intend to pay dividends to the members

Documents required

  • Digital Signature Certificate
  • Memorandum of Association
  • Director Identification Number (DIN)
  • Articles of Association
  • Details of Director
  • Members Id Proof such as Aadhar Card, Passport, Voter ID.
  • Passport size Photographs
  • Address Proof

Verdict

You can make use of various websites that help in section 8 company registration and sole proprietorship registration. It can take anywhere between 20 to 30 days for the registration to be completed.