Sole Proprietorship Firm Registration

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What is Sole Proprietorship Registration?

When single person runs a business then such kind of business is called as proprietary business, and the owner of the business is called as proprietor. Proprietorship is the most common form of the business which is used in India. You can start and operate the business with minimum regulatory compliance. However there is no full fledged way available to register your proprietorship by Indian Government. Tax registration and other business registration’s is the right way to show existence of your proprietary business. Following registrations can be used to show the existence of your proprietory Business

  • Professional Tax Registration.
  • GST Registration.
  • Shop and Establishment Registration.

The owner of a sole proprietorship business typically signs contracts in his or her own name, because the sole proprietorship business has no separate identity under the law. The sole proprietor owner will typically have customers write checks in the owner's name, even if the business uses a fictitious name. Sole proprietor owners can, and often do, mix personal and business property and funds, something that partnerships, LLCs and corporations cannot do. Sole proprietorships often have their bank accounts in the name of the owner. Sole proprietors need not observe formalities such as voting and meetings associated with the more complex business forms. Sole proprietorships can bring lawsuits (and can be sued) using the name of the sole proprietor owner.

How to Register a proprietorship company in india?

Following are the steps to register a proprietorship company in india



step1

Fill up a simple form on our website providing basic information about proprietor and business.

step2

Provide relevant documents online and we will file them with relevant authorities.

step3

We will get your proprietorship registered.

Documents Required for Sole Proprietorship Firm Registration

To register a sole Proprietorship, minimum documents are required which are :

Aadhar card or any identity proof
Self PAN card
Business account (Current account)
Address Proof (Rent Agreement, Electricity Bill)

Current Account Opening

A current account is a type of deposit account that helps the professionals and businessmen to run their business. Businessmen can avail various benefits by Online Current Account such as:

  • Unlimited transactions
  • Customized features
  • Online banking services

Online current account reduces the hassle and provides the benefit to complete the banking process anytime and anywhere.

Are you Ready to Grow your Business?



Entity Comparison Guide

TYPEPROPRIETORSHIPPVTPARTNERSHIPLLPOPC
MembersMaximum 12-2002-202- Unlimited1
Legal Status of EntityNot Considered as separate Legal entityConsidered as separate Legal entityNot Considered as separate Legal entityConsidered as separate Legal entityConsidered as separate Legal entity
Members LiabilityUnlimited LiabilityLimited to the extent of share capitalUnlimited LiabilityLiability of its members is limitedLimited to the extent of share capital
RegistrationNot CompulsoryRegistered Under MCAOptional/ Can be Registered under partnership Act 1932Registered Under MCARegistered Under MCA and Companies Act 2013
Transferability OptionNot AllowedCan Be TransferredNot AllowedCan Be TransferredAllowed to only one person
TaxationAs in Individual30% of Profit Plus CESS and Surcharges applicable30% of Company Profit30% of Profit Plus CESS and Surcharges applicable30% of Profit Plus CESS and Surcharges applicable
Annual FilingsIncome Tax Returns with the Registrar of companiesFiled with the registrar of the companyIncome Tax Returns with the Registrar of companiesFiled with the registrar of the companyFiled with the registrar of the company

Advantages of Sole Proprietorship Registration

  • Easy To Start and Close Business:
    One a week’s time you can start your business saving your time and money.
  • Single Ownership:
    Single ownership means less complications, also decision making is limited to one person.
  • No Restriction For Business Name:
    There is no need to register or reserve the name for proprietorship purpose, you can directly start the business on any name of your choice.
  • Easy Closure:
    Closure procedure is very simple with minimum formalities.

Compliances Required for Sole Proprietorship Firm

Sole Proprietorship has minimal compliances as it is not a separate legal entity from a proprietor. Main compliances are tax related and annual compliances.

Following are the compliances a sole proprietorship india needs to follow:

1. Sales Tax (VAT) Returns:

These are to be filed in every quarter of the assessment financial year, on the following prescribed dates

  • For April to June - July 25
  • For July to September - October 25
  • For October to December - January 25
  • For January to March - April 25

2. Service Tax Returns:

These are filed on half yearly basis, on the following due dates of the assessment financial year

  • For April to September - October 25
  • For October to March - April 25

3. Income Tax Returns:

ITR is filed on yearly basis, on the following dates depending upon the necessity of financial/tax audit

  • When audit is not necessary under any law - July 31 of the assessment financial year
  • When audit is compulsory under any law --- September 30 of the assessment financial year. This gets applied when the annual turnover of the proprietorship firm is over INR One Crore; Or the Service Turnover is more than INR 25 Lac.

Sole Proprietorship Registration FAQs

What is sole proprietorship meaning and what is a proprietor?

When single person runs a business then such kind of business is called as proprietary business, and the owner of the business is called as proprietor.

Who can be a proprietor?

Any Indian citizen who is a resident of India can become a proprietor.

What is the minimum capital required to register a proprietorship firm?

A proprietorship firm can be started with any amount of capital.

What are the annual compliance for a proprietorship firm?

GST and Income Tax Returns must be filed by a partnership firm.

Does one need to be physically present to register a proprietorship firm?

One does not need to be physically present. Send the documents online or through whatsapp to us and we will register a company for you.

How can I transfer my Proprietorship?

Sole proprietorship as a business can not be transferred as whole instead one can transfer assets of the proprietorship from one person to another and negotiate on the liabilities of the proprietorship.

Do I need one person to start a Proprietorship?

Yes. At least and at max one person is needed to start a proprietorship.

How to open a bank current account for a Proprietorship?

By providing relevant documents such as sole proprietorship proof,proprietor ID proof,proprietor Address proof,one can open current account in bank for a proprietorship.

Can an NRI become a proprietor?

No. NRI cannot become a proprietor.

What is Sole Proprietorship registration fee?

It depends on various factors and LegalDocs provides the best services with competitive prices. You can contact our expert to know the details.

What is Proprietorship Firm registration process?

Please refer to above mentioned step by step process for proprietorship firm registration online.

Which act governs the sole proprietorship companies in India?

Sole proprietorship companies are not considered as a separate legal entity from their owners and thus there is no separate act for them.

How to do proprietorship firm registration form download?

You don’t need to download any form, just visit LegalDocs website and fill up the form online.

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