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    Sole Proprietorship Registration

    A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the start-up phase, proprietorship’s do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business. Therefore, proprietorships are suited for unorganized, small businesses that will have a limited existence.

     

    For a Sole Proprietorship business, registration is not required as there is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. However, its liability is unlimited and it also doesn’t have perpetual existence.

     

    ComplianceIndia can be your legal and professional partner in India to help you understand how to incorporate a Sole Proprietorship in India quickly and cost-effectively.

    Advantages of Sole Proprietorship

    Easy to Start

    Easy to Start

    Complete Control of Business Operation

    Complete Control of Business Operation

    Minimum Compliance requirement

    Minimum Compliance requirement

    Tax Benefits

    Tax Benefits

    Relatively Inexpensive

    Relatively Inexpensive

    Annual filing not required

    Annual filing not required

    Eligibility to form a Sole Proprietorship

    – Single Person to act as Sole Proprietorship
    – Must be an Indian Resident

    How we Work?

    Step 1

    Fill-up our Contact Form and Submit

    Step 2

    Our Expert/ Legal Professional will contact you and provide brief guidance into the related context

    Step 3

    All Required Documents and Details to be provided as discussed with our Expert

    Step 4

    Our Expert will start Drafting of required documents and will send for review and Confirmation from Partners.

    Step 5

    Preparation and Registration of online application

    Step 6

    Application for allotment of TAN

    Step 7

    Dispatch of Firm Seal and other materials, if subscribed.

    Packages

    Consultation Charges

    Nil

    Complete assistance by Experts or Professionals indicating Process, Documents required, Benefits, Tax compliance, Legal Compliance, etc.

    Basic Plan

    Rs. 2999/- only

    • – MSME Registration
    • – GST Registration
    • – Current Account Opening in your nearest Branch
    • – Expert advice from Experts/ Legal Professionals

    Advance Plan

    Rs. 9,999/- only

    • – MSME Registration
    • – GST Registration
    • – Current Account Opening in your nearest Branch
    • – Account Book-Keeping
    • – Ledgers Keeping
    • – Current Account Opening in your nearest Branch
    • – Legal Drafting of documents
    • – 6 months GST Return filing
    • – Expert advice from Experts/ Legal Professionals

    Ultimate Mega Plan

    Rs. 14,999/- only

    • – MSME Registration
    • – GST Registration
    • – Current Account Opening in your nearest Branch
    • – Account Book-Keeping
    • – Ledgers Keeping
    • – Current Account Opening in your nearest Branch
    • – Legal Drafting of documents
    • – 12 months GST Return filing
    • – Expert advice from Experts/ Legal Professionals

    Documents Required for Partnership Firm Registration

    PAN card

    A self-attested copy of PAN card of Proprietor

    Identity Proof

    A self-attested copy of Aadhaar Card/ Voter ID/ Passport/ Driving License of Proprietor.

    Address Proof

    A self-attested copy of Aadhaar Card/ Voter ID/ Passport/ Driving License or Bank Statement/ Utility Bills not older than 2 Months in the name of Proprietor.

    Business Activity

    Description of main business activity intended to perform

    Comparison with other forms of Business

    Form of Business Proprietorship Firm Private Limited Company One Person Company Limited Liability Partnership Partnership Firm
    Act No specified Act Companies Act, 2013 Companies Act, 2013 Limited Liability Partnership Act, 2008 Indian Partnership Act, 1932
    Registration Requirement No Mandatory Mandatory Mandatory Optional
    Minimum Number of members Only 1 2 Only 1 2 2
    Maximum Number of Members No Limit Unlimited 50
    Number of Directors/Partners Only 1 2 – 15 Only 1 2 – Unlimited 2 – Unlimited
    Separate Legal Entity No Yes Yes Yes No
    Liability Protection Unlimited Limited Limited Limited Unlimited
    Statutory Audit Not Mandatory Mandatory Mandatory Dependent Not Mandatory
    Ownership Transfer ability No Restricted No Yes No
    Uninterrupted Existence No Yes Yes Yes No
    Foreign Participation Allowed Allowed Not Allowed Allowed Not Allowed
    Tax Rates Low Moderate Moderate High High
    Statutory Compliance Less High Moderate Moderate Less
    GET STARTED KNOW MORE KNOW MORE KNOW MORE KNOW MORE

    Frequently Asked Questions

    1. Who can start a Sole Proprietorship in India?

    As per the Companies Act, 2013 any Indian citizen above the age of 18 can start a Sole Proprietorship firm.

    2. How consultation will help me?

    Our in-house CA/CS/Experts will guide you to incorporate a Sole Proprietorship firm in India and will also suggest the types of registrations that will help you to run your business smoothly.

    3. Can I register my Sole Proprietorship firm under Govt. of India?

    Our in-house CA/CS/Experts will guide you to incorporate a Sole Proprietorship firm in India and will also suggest the types of registrations that will help you to run your business smoothly.

    4. Will my proprietorship firm have a separate legal identity?

    No, the proprietorship firm and the proprietor are one and the same legally. The PAN of the proprietor will be the PAN of the firm. Therefore, there will be no separate legal identity for the business. The assets and liabilities of the business and the proprietor will also be one and the same.

    5. How can I transfer my Proprietorship?

    A business operated under a proprietor cannot be transferred to another person unlike a limited liability partnership or a private limited company. Only the assets in the proprietorship can be transferred to another person through sale. Intangible assets like government approvals, registrations, etc., cannot be transferred to another person.

    6. Can other people invest in a Proprietorship?

    Proprietorship firms are business entities that are owned, managed and controlled by one person. So they cannot issue shares or have investors.

    7. Can I later convert my Proprietorship into a Company or LLP?

    Yes, there are procedures for converting your proprietorship business into a company or an LLP at a later date. However, the procedures for the same are cumbersome, expensive and time-consuming. Therefore, it is wise for entrepreneurs to consider and start an LLP or a company in case they are expecting it to be operational at a bigger scale or they want to raise investment.

    8. What is the capital requirement to start a Proprietorship?

    There is no limit on the minimum capital required to start a proprietorship.

    9. Is audit required for a Proprietorship?

    It is not necessary for proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criteria.

    10. What are the annual compliance requirements?

    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.

    11. How to open a bank account for a Proprietorship?

    The Reserve Bank of India mandates that the proprietor provide two forms of registration of the proprietorship along with the PAN, identity proof and address proof of the proprietor. The two forms of registration can be any two of the following: MSME registration, Shop & Establishment Act registration, professional license, chartered accountant certificate or others as provided in the RBI KYC norms.

    12. What businesses are commonly run as Sole Proprietorships?

    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! Jewellery shops are sole proprietors, but it is not recommended.

    13. Can I have partners in a Proprietorship?

    Proprietorship firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Proprietorship firm.

    14. How much time does it take to incorporate a Proprietorship?

    ComplianceIndia can incorporate a Sole Proprietorship in 5-6 working days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please ensure you have all the required documents prior to starting the registration process.

    OUR SERVICES

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    ₹499/-

    ST Return Filing Solutions, NIL GST Return Filing, GST LUT Filing, GST E-Way Bill, Reply to GST Notice…

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    ₹499/-

    Complete Solutions for Tax, Payroll, TDS, Income Tax for Individual and Company etc…

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    Private Limited Annual Compliances

    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your Company and Directors...

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    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your Company and Director...

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    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your LLP and Partners...

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    ₹5,000/-

    Get your XBRL financials ready for filing with MCA, BSE, NSE etc...

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    WHY TO CHOOSE US

    Recognised by Govt. of India

    We are Govt. recognised registered Company providing Financial and Legal aspects to clients all over India.

    Professional & Experienced Team

    We are a strong team of 25 energetic people with 2 Chartered Accountants and 4 Company Secretaries.

    Quick Turnaround Time

    From our past records, we assure you 100% accuracy in services we provide within the timeframe mentioned.

    Cost Effective Service with Easy EMI

    With us, you can be confident that needs will be met and agreed-upon services will be provided at a fair price with an option of Easy EMI.

    5000+ Satisfied Customers

    We provide financial, taxation and regulatory services to more than 5,000 Individuals and Businesses.

    ISO 27001:2013 Certified for Data Security

    Certified Service provider for quality standards, data security and confidentiality.

    Transparent Process & No Hidden Charges

    We practice transparent pricing for all services and separate cost into three categories, our fee, government fee, and GST. No Hidden Cost.

    All services under one roof

    From incorporation to routine finance, tax and regulatory services till Closure/ wind-up for businesses and Individuals.