Proprietorship Firm Registration In India
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Proprietorship Registration Process
It is very easy and simple to register a Proprietorship Firm with the below mentioned steps.
Our experts will help you in understanding your business structure.
Step 1
Our experts will file the application according to the requirements.
Step 2
After successful document verification, certificate will be issued
Step 3
What is a Sole Proprietorship Registration?
A Sole Proprietorship is an unincorporated business owned particularly by one person. It is not a legal entity but a description of a kind of business, so there are no formal papers required to create one. This registration can be identified by a GST Registration. It is known as the ‘GST Registration For Proprietorship’. The liability of Sole Proprietorship Firm Registration is unlimited and doesn’t have any perpetual existence. Moreover, With a sole proprietorship, the business and individual are the same.
Why choose Proprietorship incorporation in India ?
- The profit solely belongs to the proprietor
- The tax assistance avert double taxation
- The owner is accountable only to file an annual tax return and pay tax as an individual
- The owner has overall control and claims the ownership stake
- Requires no minimum capital investment
- No separate tax for the firm
Benefits of Sole Proprietorship :
- Register sole proprietorship is the most easiest and cost-effective form of business to be set up and operate.
- With a sole proprietorship, you have full ownership as you are the 100% owner of your business and get to make all the decisions individually.
- It is ideal for start-ups, self-employed contractors, part-time, and home-based businesses.
- It is much simpler to operate from a tax and accounting perspective because you don’t need to file a separate business tax return, all generated income from the business is reported on your personal tax form.
Essential Registrations for Sole Proprietorship:
A sole proprietorship doesn’t require any specific registration, but it is good advice for the owner to get some necessary registrations for the better operational functioning of the firm. The given list shows the required registration for the firm:-
The MSME Registration -
It is not mandatory to get an MSME(Small and Medium Enterprise) registration, but it boosts the chances of the business to get leans and helps in other legal matters. The MSME registration can be applied through the online registration process on MSME official website.
A Shop and Establishment Act License -
It is not essential for all sole proprietorship firms but almost all of the firms have to acquire this license, as per the local rule and regulations of the region of a business. The Shop and Establishment License is issued by the municipal corporation. It depends on the number of working employees, and it varies from state to state.
Goods and Services Tax(GST) Registration -
It is essential if the annual turnover is more than Rs 20 Lakh and Rs 10 Lakh for businesses running in Northeastern states like Manipur, Nagaland etc. GST Registration is important for an online business or also for e-commerce portals such as Flipkart, Amazon, eBay, and much more. GST registration is to help the business owner to keep his/her taxation in record throughout all the transactions made in the name of the proprietorship firm.
Documents Required :
Are you willing to start your own business? If yes then here is the checklist of documents required to fill up the application for Proprietorship Firm Registration:-
The MSME Registration -
It is not mandatory to get an MSME(Small and Medium Enterprise) registration, but it boosts the chances of the business to get loan and helps in other legal matters. The MSME registration can be applied through the online registration process on MSME official website.
- PAN card and Aadhar card
- Address Proof- Electricity Bill and Rent Agreement
- Bank Details
Checklist of Documents essential to open a new bank account for Proprietorship Registration
| Documents Required |
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Proof of the recent establishment of your business |
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Shops and Establishment Act Registration |
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Photocopy of PAN Card |
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Address proof(electricity bill/telephone bill) |
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Identity proof(Aadhar card/driving license) |
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Frequently Asked Questions
A. To register proprietorship firm can be done with any amount of minimum capital.
A. An Indian citizen with a current account in the name of his/her business can be a sole proprietorship. Registration is not that much necessary, it depends on what kind of business is planned to be established.
A. No, proprietorship firms have certificate of incorporation.
A. Proprietorship firms are the business entity that is owned, managed, and controlled by only a single person. So, Proprietorship firms cannot issue shares or have investors.
A. The assets and liabilities for the proprietor and the proprietorship are the same. The PAN card of the proprietor as well as proprietorship are the same. Furthermore, the firm has no separate legal identity.
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