Features Sole Proprietor
Registering a Proprietorship
Sole proprietorship is one of the most common forms of the business. A type of unregistered business entity that is owned and managed by a sole owner/ proprietor. A proprietorship is very easy to start, and have least compliance to be followed. There is no requirement to register a sole proprietorship besides tax registrations and other business registrations that a business is required to have.
Proprietor is the sole owner of the business, every registration would be in the name of the proprietor, thus making him the only responsible and accountable person for all the deeds of his business.
Process to Register
As such there is no prescribed procedure to register a proprietorship, but some registrations are required to be done like:
- Bank Account to be opened in the name of the Firm.
- Tax Registrations like TAN, GST Registration in the name of the proprietor and other relevant registrations based on the type of the business.
- Udyog Adhaar registration for all Micro, Small, and Medium enterprises (MSME).
- Identity Proof of Proprietor/ Owner (PAN card for Indian Nationals, Notarised Passport copy in case of foreign nationals)
- Address Proof of Proprietor/ Owner (Passport, Driving License, Adhaar Card, Bank statement)
Frequently Asked Questions
As the name suggests sole proprietorship firm, it requires only one person to start the business.
An Indian resident and citizen can be a proprietor. For Non- residents and persons from Indian origin can only invest on prior approval from the Government of India.
As per standards, there is no prescribed capital to start a proprietorship, any amount can be infused in the business.
Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity is established with applicable registrations.
As the proprietorship is owned by single owner, it cannot have investors or issue shares.
Annual Income Tax Returns with the Income Tax Department, timely filing of the GST Returns, TDS Returns and other tax filings are performed. However, there is no requirement to file any form with the MCA.
No, it is not necessary to prepare audited financial statements every year. However, Tax Audit based on the turnover of the business is required to be performed.
Yes, a proprietorship can be converted following the procedure for conversion into a Company or LLP at a later date. However, the procedure to convert is expensive, cumbersome and time-consuming.
Adhaar number is required to register for Udyog Adhaar, other details like person employed, investment in machinery & equipment, and previous registration details, if applicable.
No, online process has been created to encourage online filing of Entrepreneurs Memorandum( also known as MSME Registration), a one page online registration form is all that is required to be submitted.
Packages on Offering
- Proprietorship Registration with TAN Registration, MSME under Udyog Aadhaar Inclusive of government fee and GST
- Proprietorship Registration with TAN Registration, MSME under Udyog Aadhaar & GST Registration Inclusive of government fee and GST
- Proprietorship Registration with TAN Registration, MSME under Udyog Aadhaar,GST Registration & Trademark Registration Inclusive of government fee and GST