A sole proprietorship , also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity.

• It is compulsory  to obtain Permanent Account Number (PAN) and Tax Deduction Account Number from the Income Tax Department.
• A proprietor ship  needs to file ITR provided it is above the maximum amount not chargeable to tax.
• proprietor ship Firms having an annual turnover of over Rs. 100 lakhs are required to obtain a tax audit.
• GST registration is required for businesses whose annual turnover exceeds Rs 40 lakhs ( Rs 20 lakhs for North Eastern states).
• After GST registration firms have to file monthly, quarterly and annual GST returns.
• proprietor ship firms are also required to file quarterly TDS returns that have TAN and are required to deduct tax at source as per TDS rules(if applicable).