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Rs. 3,499.00 Rs. 5,999.00

Sole Proprietorship Firm Registration

Proprietorship firm is the most popular business structure to start a business in India, but it is an unorganized structure. Most of the entrepreneurs start their business journey with this structure.
Company Details
Act No specified Act
Registration Requirement No
Number of members Only 1
Separate Legal Entity No
Liability Protection Unlimited
Statutory Audit Not mandatory
Ownership Transferability No
Uninterrupted Existence No
Foreign Participation Not Allowed
Tax Rates Low
Statutory Compliances Less

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Tags: sole, proprietorship, firm, registration, starting, business, india

What is a Sole Proprietorship Firm?

Most businesses in India start individually without other’s participation. An individual carrying out business activities is the sole proprietor and its business entity is said to be a Proprietorship Firm. The identity of an individual and the business are not different from each other. But due to the lower tax rate, flexibility and multiple advantages people prefer this structure for the early stage of business.

With the inclusion of partners, the control over operation reduces. Hence, these proprietors choose to run the business single-handedly and land upon sole proprietorship firm registration. Although there is no specific Act to regulate this organization, there are many ways to register a Sole Proprietorship firm. Small businesses aiming to take lower risks prefer this structure.

Services Covered

GST

TAN

Udhyam Certificate

Shops and Establishment Registration

Benefits of Proprietorship Firm Registration

You Are Your Own Boss

In a sole proprietorship, the proprietor has all the rights to decide what to do and how to operate. A proprietor neither needs to report someone nor take orders from anyone else. There is no interference from a third party. Unlike a corporate firm, there are minimal compliances or disclosure requirements during the whole financial year. Hence, Government interference is also very less.

Easy To Establish

It is relatively easy to establish and register a sole proprietorship business. There is no specific process to be followed to set up this business. Also, the cost of sole proprietorship registration is very less compared to any other business structure. The business runs on the identity of the proprietor himself. He can run any legal business in his own name or with a different legal name as a brand.

You Own Whole Share Of Profit

The proprietor is the only owner of the business and therefore he owns the whole share of the business profit. Also, the business assets are treated as assets of the proprietor and vice-versa. He can decide when to withdraw profit or to reserve.

Tax Benefits

The proprietorship business is not treated separately for income tax purposes. The tax slab as specified for an individual’s income is only applicable to the income of the business. The rates of tax are lower compared to other business structures like companies and partnerships. The benefit of deductions is an added advantage with combined ITR for individuals and the business.

Information is not made Public

Unlike Companies, Limited Liability Partnerships, etc. where financial statements and audit reports are made public for the users through the MCA (Ministry of Corporate Affairs) portal, the financial reports of Sole Proprietorships remain in private hands. Even, the list of all proprietorships is not readily available with the Government officials. 

Lesser Investment

Sole Proprietorships can be started with a very minimal amount of investment at the initial phase. So, it is a great opportunity for those who want to set up a business with low funds as no minimum capital is prescribed for starting a Proprietorship.

Documents required for registration of Proprietorship Firm

PAN Card

PAN Card Proprietor

Aadhar Card

Self- attested copy of Aadhar Card of proprietor

Bank Details

Details of the saving or current account of bank

Photographs

Color Photo of the Business Owner

Business Address Proof

Electricity Bill, Property tax receipt, Sale Deed, Registered Rent Agreement (Latest)

Address Proof of the Proprietor

Address Proof (Voter ID, Driving License, Passport, Bank Statement, Electricity Bill).

Name of the Business

Tradename of the Business

NOC

NOC from the Owner of Premises

Process Flow

Establish Proprietorship in 3 Easy Steps

1. Answer Quick Questions

  • Pick a Package that best fits your requirements
  • Fill in our questionnaire that take less than 10 minutes
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways

2. Experts are Here to Help

  • Assigned Relationship Manager
  • Preparation and filing of Application
  • Registration under MSME Department
  • Firm Seal
  • Allotment of TAN

3. Your Business is incorporated

  • All it takes is 7 working days*

Process to register Proprietorship online

Day 1

  • Business registration consulting
  • Collection of basic information
  • Provide Required Documents

Day 2 - 3

  • Preparation of online application
  • Online Sole Proprietorship registration
  • Application for allotment of TAN
  • Application for Udhyam Registration
  • Application for GST Registration

Day 4 - 7

  • Registration Complete

Compare different business structures to choose the right entity type
Sole Proprietorship Firm Registration LLP Registration Private Limited Company One Person Company Registration Partnership Firm Registration Section 8 Company
Act No specified Act Limited Liability Partnership Act, 2008 Companies Act, 2013 Companies Act, 2013 Indian Partnership Act, 1932 No specified Act
Registration Requirement No Mandatory Mandatory Mandatory Optional No
Number of members Only 1 2 – Unlimited 2 – 200 Only 1 2 – 50 Only 1
Separate Legal Entity No Yes Yes Yes No No
Liability Protection Unlimited Limited Limited Limited Unlimited Unlimited
Statutory Audit Not mandatory Dependent Mandatory Mandatory Not mandatory Not mandatory
Ownership Transferability No Yes Restricted No No No
Uninterrupted Existence No Yes Yes Yes No No
Foreign Participation Not Allowed Allowed Allowed Not Allowed Not Allowed Not Allowed
Tax Rates Low High Moderate Moderate High Low
Statutory Compliances Less Moderate High Moderate Less Less
Explore Sole Proprietorship Firm Registration – Its formation and registration