Sole Proprietorship or a Sole Trader is the oldest and most simple structure for the business. That is owned and managed by a single individual. Selecting the organization ownership structure depends on Principal Business Activity for example if you interested in travel and tours then in that case Private Limited Company registration with SECP is mandatory for IATA membership.
The features of Sole Proprietorship
It is very easy to setup than other type of business like partnerships or companies as there is no formal or legal requirements.
Decisions making and control by single person.
Tax liabilities are also limited however if annual revenue exceed hundred million rupees then minimum and advance taxes are applicable.
No need to file separate annual income tax returns for the business , the owner is only need to file their personal tax returns.
The owner will avail the whole profit from all of trade activities as there is no other shareholder.
Owner is personally responsible for the all trade losses and liabilities , in case of default amount can be recovered through sale of personal assets of the owner’s.
Lastly and most importantly No assets or property can be held in the name of business.
How to register ?
The registration procedures are very simple. The registration procedures are very simple. Only NTN Registration is sufficient for this purpose. There is no requirements of any other certificate any further. Documents required for NTN Registration are listed below:
Registration Form 181
Name of your Business
Scan copy of Rent agreement in case rental property or ownership documents if property is your own
Scan copy of current Electricity bills
Date of commencement
Color scan copy of Computerized National Identity Card (CNIC)
Mobile Number must be registered against your CNIC
How We Can Help You ?
Al-Muhasib & Co. has been providing Registration services for Sole Traders since 2008 in all over Pakistan. Further more If you need any assistance in registration of your business Please feel free to contact us.