What is a Sole Proprietorship?

By Published On: May 17, 20222.7 min readViews: 581

What is a Sole Proprietorship?

By Published On: May 17, 20222.7 min readViews: 581

A sole proprietorship is also known as a sole trader/sole owner, or simply proprietorship is a type of business entity, which is owned and run by one individual and where there is no legal distinction between the owner and the business.
All profits and losses accrue to the sole owner (proprietor/trader).

The owner owns all assets of the business, and all debts of the business are his debts, he must pay them from their personal resources. This means that the owner has unlimited liability. It is a sole proprietorship because the owner has no partners (partnership).

A sole proprietor may do business with a trading name other than their legal name. This also allows the proprietor to open a business account with banking institutions.

DOCUMENTS REQUIRED FOR REGISTRATION

  • Name & Nature of the Business.

  • CNIC and NTN of the Person Applying for Sole Proprietor Registration.

  • Address of the Business with property ownership documents or rental agreement in case property is on rent.

  • Last paid Electricity Bill of the Address.

  • Letter Head and stamp of the Business.

  • Bank Account Maintenance Certificate.

  • Mobile number of Sole proprietor that is not already registered with FBR.

  • Email address of Sole proprietor that is not already registered with FBR.

Registration Charges

Rs. 30,000

Registration Time

5-7 Working Days

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