Sole Proprietorship makes liability of its owner unlimited. After Sole Proprietorship Registration there is no difference between liability of the owner and that of the Sole Proprietorship Business.
Consequent to the Sole Proprietorship Registration, Sole Proprietor shall alone run the business affairs and is responsible for all business’s debts, losses and liabilities in personal capacity.
This also means that Sole Proprietor shall not be required to file a separate return for his Sole Proprietor Business rather he is required to declare his business income in his personal return.
Sole Proprietorship Registration for its easy Start-up process and for its cheap capital requirement is considered favorable by beginners and especially fresh graduates who desire to register a business entity in Pakistan.
In order to have Sole Proprietorship Registration all you need to do is:
- Choose a name for your business.
- Detail of the business
- Official business phone number (must be registered on owner’s name).
- Registered office address proof i.e., Rent agreement or ownership document.
- Electricity Bill of the business premises.
- In order to apply for Sole Proprietorship Registration, you must have a National Tax Number (NTN) to be issued by FBR. You will only receive an NTN certificate with your name & details on it.
- Make a letterhead and business card of your business with name, logo, phone number and physical office address of your business on it.
- File request on the letterhead signed and stamped along with your CNIC and business card with the bank of your choice for opening a business account.
- Get issued a maintenance certificate from the bank after your account is opened.
- After your account is opened you can also register for Sales Tax (GST).