Sole proprietorship Registration

Expert assistance at your fingertips

Plans

Proprietorship Registration

₹ 1499 / Per Year

GST Registration
MSME Registration
Current Account Opening (IDFC Bank)

Book Now

Private Limited Company Incorporation

₹ 5999 / Per Year

DSC - 2 Nos. (2 yrs validity)
DIN - 2 Nos.
Name Approval for Company
Incorporation of Pvt Ltd Company
PAN & TAN for the Company
Current Account Opening
Company Registration

Book Now

Steps

1. Fill out the Form

Filling out the form is quick and easy and will provide you with numerous benefits in the long run. By this, you will be able to get consultation from our Auditorwala CA/CS and will be able to get Guidance. So, why wait? Take the first step towards a bright future for your business and fill out the form today.

2. List of Documents Required

Here are the List of documents required for Sole Proprietorship Registration:

Address and identity proof
PAN card, KYC documents
Rental agreement or sale deed (in case of Shops & Establishment Act Registration)

What Are The Documents Required For Opening A Current Account?

Proof of the existence of your business
Shops & Establishments Act Registration
PAN card
Address and Identity proof

3. Compliances Required For Sole Proprietorship Firm

Compliances needed for Sole Proprietorship Registration:

Income Tax Return Filing
Business Income
GST Return Filing
TDS Returns

4. Checklist Items for a Sole Proprietorship Registration

Common Checklist Documents for Verification:

Certificate/license issued by Municipal authorities under the Shop & Establishment Act.
License issued by Registering authorities seperti Certificate of Practice issued by the Institute of Chartered Accountants of India
. Registration/licensing document issued in the name of the proprietary concern by the Central/State Government Authority/Department.
IEC code (Importer Exporter Code) issued to the proprietary concern by the office of the DGFT for opening bank accounts.
Complete Income Tax return online (not just the acknowledgement) in the name of the sole proprietor where firm's income is reflected.
Utility bills (electricity, water, landline telephone) in the name of the proprietary concern. Issue of GST Registration/Certificate.

5. Advantages of Sole Proprietorship Registration

Some of the Advantages of Sole Proprietorship Registration:

Easy to set up
Complete control
Fewer compliance requirements
Minimal capital investment
Personal liability protection

6. Requirements of Sole Proprietorship Registration

The basic requirements for sole proprietorship registration in India are:

Choose a unique business name
Obtain necessary business licenses and permits
Obtain a PAN card
Register for GST (if applicable)
Open a separate bank account for the business
Provide a valid proof of business address
Obtain a business registration certificate (optional but recommended)

Sole Proprietorship Registration

What is a Sole Proprietorship?

When a business is owned and governed by one person, it is called a sole proprietorship company. This type of business can be incorporated in fifteen days and hence makes it one of the most popular types of business to begin in the unsystematic sector, specifically among merchants and small traders. For a Sole Proprietorship business, registration is not required as it is identified through alternate registrations, such as GST registrations. However, its liability is unlimited and it also doesn't have perpetual existence.

Frequently Asked Questions

1. Who can start a Sole Proprietorship?

Any Indian citizen who is a resident and has a valid PAN and business address can start a Sole Proprietorship. It is the simplest form of business structure in India.

2. How long does it take to establish a business with a sole proprietorship?

Typically, it takes about 5-10 working days to get all the basic registrations like GST or MSME, which effectively establishes the proprietorship.

3. What businesses are commonly run as Sole Proprietorships?

Small retailers, localized service providers, freelance professionals, and home-based businesses commonly choose this structure for its simplicity.

4. Aside from a current account, is there any need for any other registration?

Depending on the nature of business, you might need GST registration, MSME (Udyam) registration, or a Shop & Establishment Act license.Depending on the nature of business, you might need GST registration, MSME (Udyam) registration, or a Shop & Establishment Act license.

5. Is it cheaper to run an LLP than a private limited company?

Yes, LLPs generally have fewer audit requirements and lower compliance costs compared to Private Limited Companies.

6. What if I wish to convert from a sole proprietorship to a private limited company or partnership?

You can transition by registering the new entity and transferring the assets and liabilities. This is a common path as businesses grow.