Sole proprietorship business can be defined as;

A sole proprietorship also denoted as a sole trader or a proprietorship, is an standalone business that has just single owner who is required to pay income tax personally on profits generated by the business

It normally occurs when you have qualities of a leader, and cannot work under the people as it makes you tired, and somewhat pushes you to start your own business set up.

Sole Proprietorship Business gives an opportunity to feel and be yourself a leader.

Proprietorship is the most famous category of business structure lead by businessmen in Lahore as well as other cities of Pakistan. This category of business structure looks usually around like

• Saloons,
• Photographers,
• General Stores,
• The chemist,
• Motor Mechanics,
• Doctors
• Grocery shops,
• Lawyers/Advocates are the simple examples of sole proprietors.

The registration of a sole proprietorship structure of business is quite easy as in comparison with any other form of business like partnership firm registration or private limited company registration. One of the main cause for easily managing of sole proprietor business is that it is handled by a single person but it does not reveal any restriction for employment and sole proprietor can easily employ the required number of employees to manage and run his business effectively.

The sole proprietor has an option to use any name for business but depends on the name cited in the sole proprietor certificate of registration issued by the Federal Board of Revenue. Sole proprietor is also permitted to open the Bank Account with his business name.

Let’s move towards the main features of Sole Proprietorship Business in Pakistan;

Overview of features of Sole Proprietorship is as under;

Let’s move towards the process of registration of sole proprietorship in Lahore, Pakistan

Mostly Businessmen find it appropriate to select proprietorship business because of its natural creation and compliance with Govt Departments. All the concern of Profit and loss of proprietorship business goes to the Owner.

• Selecting a name for the business/ Sole Proprietorship.
• For application for Registration of Sole Proprietorship, you must have a National Tax Number (NTN) issued by the FBR. You will be provided an NTN certificate with your name & details on it.
• Make letterhead and business card for your Sole proprietorship business including name, phone number, logo, and address of your physical business office.
• Furnish a request on the letterhead duly signed and stamped along with your CNIC and business card with any bank in order to open a business account for the Sole proprietorship Business.
• When your account will be opened, you would be provided a maintenance certificate from the bank.
• After opening an account, you can also apply for Sales Tax (GST) registration.

Registration process of Sole Proprietorship Business in Lahore is an online which is discussed below in detail;

Steps involved in registration of sole proprietorship are listed below;

Following are the required documents and method under which registration made in Pakistan;

The following are the documents needed for Registration of Sole Proprietorship Business

1. Copy of National Identity Card issued by the Nadra.
2. Mobile number along with Email Address of Sole Proprietor that is not ever registered with the FBR.
3. Business Name, Address and Principle operation of the Business.
4. Paid Electricity Bill of the last three months
5. Rent agreement of Business Premises along with CNIC Copy of Premises Owner

Procedure for registration of Sole Proprietorship following opening of bank account is discussed as under;

• Create your ‘FBR Login through IRIS’
• Fill out Form 181 for enrollment in FBR System.
• Add your Business and Address and choose Business Principle Activity
• Attach Requisite documents with Form 181 and Submit for issuance of NTN
• After creating NTN proceed for opening Business Bank Account in any commercial Bank and start your business.