Registration of business as a Sole Proprietorship is a common way to register your business in Pakistan. In comparison to the company registration, Sole Proprietorship is the simplest way of business registration in Pakistan as it does not require complex documentation, audits and double taxation. It requires National Tax Number, Sales Tax Number and Bank Account of the business.
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: