Sole Proprietorship Firm Registration
A proprietorship firm is a type of business organization that is owned and managed by a single individual. Proprietorship firm registration is the process of legally registering this type of business with the relevant government authority to ensure compliance with applicable laws and regulations.
Easy Process and Documentation
Required Paperwork
- Identity proof of the proprietor
- Address proof of the proprietor
- PAN (Permanent Account Number) card
- Proof of ownership of the business premises (if owned)
- Rental agreement (if rented)
- NOC (No Objection Certificate) from the landlord
- Bank account statement or cancelled cheque
- Photographs of the proprietor
Process, Service Charges, Time duration
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HOW DO I REGISTER A SOLE PROPRIETORSHIP?
When a single individual manages a business, it is referred to as a proprietary business, and the owner is referred to as a proprietor. The most popular type of business in India is the proprietorship. You can create and run a business with little regulatory oversight. However, the Indian government does not provide a comprehensive method for registering your proprietorship. The proper technique to demonstrate the existence of your proprietary firm is through tax registration and other business registrations. The following registrations can be used to demonstrate the existence of your business. Business
- Tax Registration for Professionals.
- Registration for GST.
- Registration of a shop or establishment.
Because the sole proprietorship business has no unique identity under the law, the owner often signs contracts in his or her own name. Even if the business utilises a fictional name, the sole proprietor will often have consumers make checks in the owner’s name. Sole proprietors can and frequently do blend personal and commercial property and funds, while partnerships, LLCs, and corporations cannot. Bank accounts for sole proprietorships are frequently in the name of the owner. Sole proprietors are exempt from the formalities associated with more sophisticated business structures, such as voting and meetings. lone proprietorships can file lawsuits (and be sued) in their lone proprietor owner’s name.
Read also: One Person Company vs. Sole Proprietorship Firm in India
HOW TO REGISTER SOLE PROPRIETORSHIP COMPANY IN INDIA?
Following are the steps to register a proprietorship company in india
Step 1
Fill out a simple form on our website to tell us about the business owner and the business.
Step 2
Please provide the necessary documents through an online submission form, and we will see to it that they are filed away properly.
Step 3
We will take care of registering your sole proprietorship.
DOCUMENTS NEEDED FOR PROPRIETORSHIP FIRM REGISTRATION
To register a sole proprietorship, the following documents are required: :
| Aadhar card or another identity document |
| Self-issued PAN certificate |
| Active business account |
| Address Verification (Rental Contract, Electric Bill) |
OPENING A NEW ACCOUNT NOW
A current account is a type of deposit account that helps workers and businesspeople run their businesses. By using an online current account, business owners can get a number of perks, such as:
- You can do a lot of business.
- Personalised parts
- Services for online banking Having an online current account makes things easier and lets you do your money whenever and wherever you want. ARE YOU READY TO GROW YOUR BUSINESS?
- In just 5 mins
- you can have a current account with no money in it.
- Free Account-to-Day ICICI Bank is behind it.
ENTITY COMPARISON GUIDE
| TYPE | PROPRIETORSHIP | PARTNERSHIP | LLP | PVT | OPC |
|---|---|---|---|---|---|
| Members | Maximum 1 | 2-20 | 2- Unlimited | 2-200 | 1 |
| Legal Status of Entity | Not Considered as separate Legal entity | Not Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity |
| Members Liability | Unlimited Liability | Unlimited Liability | Liability of its members is limited | Limited to the extent of share capital | Limited to the extent of share capital |
| Registration | Not Compulsory | Optional/ Can be Registered under partnership Act 1932 | Registered Under MCA | Registered Under MCA | Registered Under MCA and Companies Act 2013 |
| Transferability Option | Not Allowed | Not Allowed | Can Be Transferred | Can Be Transferred | Allowed to only one person |
| Taxation | As in Individual | 30% of Company Profit | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable |
| Annual Filings | Income Tax Returns with the Registrar of companies | Income Tax Returns with the Registrar of companies | Filed with the registrar of the company | Filed with the registrar of the company | Filed with the registrar of the company |
THE BENEFITS OF SOLE PROPRIETORSHIP REGISTRATION
- Simple To Open and Close a Business:
In a week, you can save time and money by launching your business.
- Individual Ownership:
Single ownership reduces complications and limits decision-making to a single individual.
- No Restrictions On Company Name:
There is no need to register or reserve the name for proprietorship purposes; any name of your choosing can be used to establish a business immediately.
- Simple Closure:
The closing procedure is straightforward and involves few formalities.
REQUIRED COMPLIANCES FOR SOLE PROPRIETORSHIP FIRM REGISTRATION
The compliance requirements for a Sole Proprietorship are minimal because it is not a distinct legal entity from its owner. Principal compliance requirements are tax-related and annual.
The following requirements must be met by a sole proprietorship in India:
- Sales Tax (VAT) Returns:
These must be submitted each quarter of the assessment fiscal year, on the following dates:
For April to June until 25 July
July through September to October 25
For October through December through January 25
January to March through April 25
- Service Tax Reports:
These are due every six months, on the following dates of the assessment fiscal year:
For April to September, the 25th of October
For October through March, 25 April
- 3. Federal Income Tax Returns:
ITR is lodged annually, based on the necessity of a financial/tax audit, on the following dates:
When audit is not required by law – July 31 of the fiscal year of assessment
When auditing is required by law — September 30 of the fiscal year in question. This is applicable when the annual turnover of the proprietorship firm exceeds INR 1,000,000, or when the annual turnover of the service firm exceeds INR 25 Lac.
SOLE PROPRIETORSHIP REGISTRATION FAQS
Visit LegalDocs Website
Fill out a simple form on our website to tell us about the business owner and the business.
Give us the necessary papers online, and we’ll send them to the right people.
