The Proprietorship registration is known as one-man army because only one person is the sole owner. Some points to be noted that he must be Indian citizen, no limitation has been imposed on the minimum amount for initially for the proprietorship. Also, no registration is required for starting the proprietorship. This form of registration is very common in India, generally used by small entities. However, benefits cannot be enjoyed by the proprietorship owner such as liabilities, separate legal entity, any existence independently, transferability etc. which is common benefits enjoy by a business. This registration is especially for the smaller business to start their business with a limited existence in the market.
In India, there are many small businesses, who are operating their business in the form of Sole Proprietorship. Just in few simple steps, business entity can be formed with the sole owner and without any legal formalities as such. Sole owner is required to open a current account and must carry out transaction through that with some prescribed KYC as per RBI norms. This is the easiest way or platform of starting a small business with a focus on business growth rather than getting through complexities of legal compliances.