BENEFITS OF SOLE PROPRIETORSHIP

Sole Proprietorship (Individual Business) has many benefits as compared to Private Limited Companies; some of which are:

Sole Proprietorship (Individual Business) is the easiest and simplest way to do business in Pakistan.
The registration process is very simple and quick
Sole Proprietorship and owner is the same person so there is no need of any meeting of Board of Directors (in case of Company) or Partner’s Meeting (in case of AOP).
The owner is not accountable to anyone.
Very few lawful regulations and compliances are to be followed as compared to a private limited company.
Since the owner and business income is the same; therefore, the income tax is only required to be paid once a year.
Quick decision making process
No separate Income tax Return need to file as Sole Proprietor Business Return also included in Personal Return format on IRIS Portal.
Only one time taxation is imposed (on the basis of Business Profit).
Obligation to Withhold Tax as a Withholding Agent against Payments (U/S 153, U/s 233 , U/s 155) starts beyond a threshold Limit. (100 Million Turnover in any of the previous Tax year from 2017 or onwards.)
Obligation to pay Tax on Sales (Turnover Tax u/s 113) regardless of Profit / Loss starts beyond a threshold Limit. (100 Million Turnover in any of the previous Tax year from 2017 or onwards.)
All the profits belong to the owner only
Financial records accessible to the owner only.
No Cost of Statutory Annual Audit.
Highly Recommended for STARTUPS (if they are nor concerned about, Name Security, Corporate Structure, raise Capital / Investment)