You can use any amount of minimum capital to start a proprietorship since there is no fixed limit to the minimum capital required to start a proprietorship.

In the case of a proprietorship, every year you do not have to conduct a statutory audit. But based on your turnover and other factors, you may need a tax audit.

Yes, a proprietorship can be converted into a company or an LLP by following certain procedures. But converting a proprietorship business into a company or an LLP involves a lengthy procedure that can be expensive and time-consuming. So it is always advisable for an entrepreneur to consider the options of starting an LLP or a company rather than a proprietorship.

You can run any kind of local business, starting from a grocery store to being a fast-food vendor, as a sole proprietorship. You can even run a sole proprietorship if you are a small trader or manufacturer. 

You cannot transfer your proprietorship operated business to another person as in the case of a private company or a limited liability through the sale. Also, you cannot transfer intangible assets like registration, government approvals, etc. to anyone.

In India, a sole proprietorship company is not a separate legal body from its owner. So it has no separate act governing it.

A proprietorship concern has very little compliance to follow.
a. Every year you have to file your income tax return with the Income Tax authority
b. File your GST return depending on the size and nature of your business

Since a proprietorship concern is owned, controlled, and managed by a single person, you do not have the option of adding partners to your proprietorship concern.

In case of proprietorship concern, the proprietor’s PAN card and that of the Proprietorship are the same. So your firm has no separate legal identity. Also, when it comes to the assets and liabilities, it is the same for the proprietor and the proprietorship.