Setting Up a Business as a Sole Proprietor

Setting Up a Business as a Sole Proprietor

A Sole Proprietor business is ideal for a Sole Trader or Business Individual. If 2 or more people are running this type of Enterprise, then setting up a Partnership Business would be a better Business to set up.

Benefits and Features of Setting Up a Business as a Sole Proprietor

  • Legal Entity
    • A Sole Proprietor Business is not its Own Legal Entity. To have a business with similar traits but to be its own Legal Entity, it would be handy to consider setting up a Private Limited Company.
  • The People Involved in a Sole Proprietor Business
    • As the Name suggests, just one, the Business Owner, who would also exclusively represent the Business
  • Is there any Capital Requirement?
    • No
  • Registration Provider
    • Pakistan’s Tax Department (FBR)
  • Compliance Level
    • Minimal
  • Time it takes to Set Up
    • 1-2 days
  • Liability
    • The Business Owner is totally Liable for the Actions and Consequences of the Business, in all agreements, contracts and in cases of debts or deficits
  • Protection of Name
    • None What so ever, however, you may apply to Register your Trademark and to Copyright your Intellectual Property
  • Do you have to File Income Tax?
    • For this kind of Business, filing of Annual Income Tax of the Business Owner would be required.
  • What Form of Taxation is based on a Sole Proprietor Business?
    • Slab Rates
  • What are the Applicable Taxes?
    • The Business Owner is taxed on the Profits of the business if the Turnover of the business is under Rs.1,00,00,000/- (Ten Million Rupees / 1 Crore). Once this amount is exceeded in Turnover, 1.25% of Turnover is Taxable
  • Are Audits of Accounts Necessary?
    • No, they are not compulsory
  • Are filing Returns with Regulators Necessary in a Sole Proprietor Business?
    • No
  • Are Meetings Mandatory in Such Businesses?
    • No, not at all, however it is advisable to keep a Business Lawyer or Accountant in the loop of your business to ensure you are compliant at all times.
  • Cost to Set Up this Business?
    • Only Rs.5,000/-
  • How much would my Annual Returns Cost?
    • The Starting Price of your Annual Returns would be Rs.5,000/- and would vary depending on how the books are kept and the amount of Paperwork our Accountant would have to go through
  • Can I Set This Up Online?
    • Yes, Absolutely! We can handle the whole process from start to finish. We would Either ask you to come to our office or post you the relevant documents, and that’s it!

Setting Up a Sole Proprietor Business Online

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