Sole Proprietorship Registration

Sole Proprietorship meaning An individual carrying out business projects is the sole proprietor and its business entity. The identification of an individual and the business are not distinct from each other. But due to the lower tax rate, flexibility, and various advantages people prefer this structure for the initial stage of business.

Sole Proprietorship

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ABOUT

What is a Sole Proprietorship?

When a business is controlled and administered by one person, it is called a sole proprietorship company. It is a kind of unregistered business entity owned, managed, and directed by one personA sole proprietorship is the most popular type of business in India, and it is used by most micro and small businesses functioning in the unorganized sectors.

Proprietorships are easy to start and have the least regulatory compliance requirements for working. This entity is ideal for entrepreneurs going into business for the first time and small businesses with some clients. This type of business can be incorporated in fifteen days, making it one of the most common business types to start in the unsystematic sector, especially among merchants and small traders. 

What are the sole proprietorship examples?

As far as examples of such types of businesses, there are a ton!
• Freelance writers
• Financial planners
• Tutoring
• House cleaning services
• Bookkeeping
However, there are countless more 

Features of Sole Proprietorship

Registering your business as a private limited company holds many advantages, some of which are as follows:

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Simple to start

The entrepreneur can start operations and receive payments from clients as no registrations are required to start a proprietorship.

 
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Easy compliance

The other advantage of a Proprietorship is that it requires no additional compliance in most cases. The PAN of the proprietor and proprietorship are one and the same. Hence in most cases, only income tax return in Form ITR-3 must be filed every year.

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Easy dissolution

The proprietor does not have to particularly wind up the company in case he wants to cease operations. This saves a lot of time and effort."

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Lower Tax Rate

All income earned by proprietorship business is taxable in the hand of the individual. Individual Income Tax slab is applicable and the income tax threshold limits also applicable for calculating the Tax.

Registration Process Flow

1-2 HOURS
Select Package

Start by selecting the appropriate one, fill out the required forms, or simply speak to our experts online for assistance.

2 WORKING DAYS
Filing Registration Form

We will help you fill out all vital documents, including the Incorporation Certificate. The Ministry of Corporate Affairs will issue your PAN and TAN. 

2 WORKING DAYS
Start your Business

Once the application is successfully submitted, youcan start your business. 

 

DOCUMENTS REQUIRED

Minimum criteria

  • Only one director/ owner
  • No minimum share capital

Documents for Owner

  • Self Attested Copy of Pan Card.
  • Self Attested copy of Aadhaar Card / Passport / Driving License / Voter Identity Card
  • Passport size photographs
  • Self Attested Copy of Bank Statement /Telephone Bill / Mobile Bill

Document For Registered Office

  • Electricity/Water bill pertaining to the proposed registered office
  • Copy of rent agreement (if chosen a rented property) or property papers (if owned property)

PRICING

Basic Package

Save upto-10% cost on this package

₹ 7,999

(Inclusive All)

  • Name Search Report
  • Name approval in RUN (Reserve Your Unique Name)
  • DSC(2no) (Extra Dsc Per Director – Rs-1000)
  • Filing Spice Form
  • Issue of Incorporation certificate along with PAN & TAN
  • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
  • Msme Registration
  • Share Certificate (Soft Copy)
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Growth Package

Save upto-20% cost on this package

₹ 9,999

(Inclusive All)

  • Name Search Report
  • Name approval in RUN (Reserve Your Unique Name)
  • DSC(2no) (Extra Dsc Per Director – Rs-1000)
  • Filing Spice Form
  • Issue of Incorporation certificate along with PAN & TAN
  • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
  • Msme Registration
  • Share Certificate (Soft Copy)
  • GST Registration
  • Stamp and Company Seal
  • Bank – Current Account Opening
  • 10% Discount on Future Service
BUY NOW

Premium

Save upto-30% cost on this package

₹ 16,999

(Inclusive All)

  • Name Search Report
  • Name approval in RUN (Reserve Your Unique Name)
  • DSC(2no) (Extra Dsc Per Director – Rs-1000)
  • Filing Spice Form
  • Issue of Incorporation certificate along with PAN & TAN
  • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
  • Msme Registration
  • Share Certificate (Soft Copy)
  • GST Registration
  • Trademark Registration
  • 1month free GST filing
  • NDA
  • Guideline for Startup India Registration.
  • Stamp and Company Seal
  • Bank – Current Account Opening
  • 10% Discount on Future Service
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FAQ's on Sole Proprietorship

A sole proprietorship differs from other forms of business in several ways. Sole proprietorships are the least complex and cheapest form of start the business. Sole proprietorships require minimal formal paperwork to start the business. Sole proprietorships do not shield individuals from liability for their business debts, or we can say individuals having unlimited liabilities. Sole proprietorships are treated as simple income for tax purposes and do not need to have separate taxes prepared.
Yes, it can be possible, when the Individual needs conversation from proprietorship to private, LLP, or OPC can be done at a point of time.
 
The owner of a sole proprietorship business in India is called a proprietor. It cannot be a corporate or legal entity. The proprietor and the proprietorship are considered to be the same entity legally.
 
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.
 
A Sole Proprietorship business does not take more than 15 days to set-up and start functioning. This simplicity makes it popular among small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.
 
Proprietorship firms are business entities that are owned, managed, and controlled by one person. So they cannot issue shares or have investors.
 
Proprietorships will have to file their annual tax return with the Income Tax department. However, annual reports or accounts need not be filed with the Ministry of Corporate Affairs, which is required for an LLP or a company.
 
There is no limit on the minimum capital required to start a proprietorship.
Yes, you are personally liable for your sole proprietorship. You will be held personally accountable for your business’s debts and legal judgments.
 
You can approach any bank to start a Current Account for your Firm. We’d recommend you choose a Bank depending on your business. For instance, you could choose HDFC Bank if you are looking to begin an Import Export business. The documents needed for this differ from Bank to bank but are usually PAN, Aadhaar, and a valid Entity Proof (Any 1 from Udyog Aadhaar or GST)
 
In the eyes of the Internal Revenue Services and relevant legal regulations, you and your proprietorship are the same entity. This implies that any profit you obtain through your sole proprietorship is also included as personal income. Your individual tax return and business tax return will be the same. However, you should also note that sole proprietors may be available for certain tax credits and taxation rules.
 
Step by step approach for GST Registration of a Small Proprietorship Firm:
Step 1 – TRN Generation
Step 2: Open the Registration Application
Step 3: Fill up the Application