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

Simply fill out this form below, and our Business Consultant or Accountant will contact you. Our Lawyers also abide by our “24Justice.pk Fixed Fee Policy” which means you do not have to worry about any unknown and hidden extra charges.
You will receive a response withiin 24 Hours from Our Business/Taxation Specialist, who will give you free advise on your matter as well. If you do not get a response, simply call us on 0308 551 0031 (Outside of Pakistan/Whatsapp Number 0092 308 5510031)

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