Sole proprietorship is the most commonly used business structure. Its straightforward personal management style provides many conveniences, allowing the business owner to make all decisions independently. The ease of establishment and closure of sole proprietorships is a significant advantage, accomplished quickly and with minimal complexity.
While a sole proprietorship is advantageous in terms of the features mentioned above, as the scale of the business expands, it may lose some of these advantages. Particularly, as the earnings increase, being subject to higher tax rates can prevent profits from being easily added to the business capital, leading to encountering higher taxes.
In conclusion, a sole proprietorship is the most suitable company type for uncomplicated, small-scale businesses.
Documents Required to Establish a Sole Proprietorship:
- Lease agreement (business premises lease agreement or title deed if owned)
- Residence certificate (E-Government)
- Signature declaration (Notary)
- Photocopy of the ID card
- E-Government Password
The necessary documents for establishing a sole proprietorship consist of the mentioned paperwork. After preparing the documents, the process proceeds to the establishment of the sole proprietorship.
Sole Proprietorship Establishment Process: The establishment procedures are straightforward. After providing a Power of Attorney to a Financial Advisor, along with the aforementioned documents, the business owner completes the opening procedures of the company within 1-2 days. After the tax office inspection, the tax certificate is obtained. Following the acquisition of the tax certificate, e-signature procurement and e-invoice application are made.
If registration is required for a professional chamber or the Chamber of Commerce, the necessary procedures are carried out.
If you decide not to need an office or warehouse space, especially for online income or service sectors such as projects, you can establish your sole proprietorship as a home office or virtual office.