The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
A pre-requisite to be a sole-proprietor is having a PAN (Permanent Account Number) in one’s own name. The sole-proprietorship’s PAN will not be different from the sole-proprietor’s PAN. If you wish to apply for one please click here. Apply for PAN.
In the state of Karnataka, a sole proprietorship can be registered under the
- Register under Karnataka Shops and Establishment Act
- Register for Profession Tax under The Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976
Alternatively, a sole proprietorship could also Register for Service Tax. However, it is pertinent to note that it is mandatory to register for service tax when the turnover from the services provided exceeds Rs.9 Lakhs in a financial year.