Overview

Proprietorship in India is a type of unregistered business entity that is owned, managed, and controlled by one person. The micro and small businesses that are operating in the unorganized sector prefer registering as a proprietorship in India. It is very easy to start a sole proprietorship in India as it has very few regulatory compliances for conducting businesses. Proprietorship registration is ideal for the entrepreneurs who are getting into the business for small businesses with very few clients. The liability of the sole proprietorships is limited and they also do not have perpetual existence.

A sole proprietor is the owner of the sole proprietorship, he is recognized as an entity same as the business. As the sole proprietor is the owner of the business he is entitled to all the company's revenue. The sole proprietorship is completely under the control of the proprietor. Hence, he makes the decisions for the company. To run a business as a sole proprietor some licenses and permits are required. The license will depend on the industry, state, and locality.

Get Started to form Proprietorship Business

Benefits of Sole Proprietorship

• Minimum Compliance

Sole proprietorships have minimum compliance requirements. Therefore, their agreements are confined to yearly filings for service, sales or professional taxes.

• Simple to Begin

A sole proprietorship is simple to begin and can be setup in 5 days with the help of a PAN Card. One needs to simply have a GST registration in place.

• Economical

A sole proprietorship is economical due to its minimum compliance requirements, including no requirement for hiring an auditor.

Checklist for Sole Proprietorship Registration

• A certificate/license issued by Municipal authorities under the Shop & Establishment Act.
• The license issued by Registering authorities like the Certificate of Practice is issued by the Institute of Chartered Accountants of India.
• The registration/licensing document is issued in the name of the proprietary concern by the Central Government or the State Government Authority/ Department.
• The banks may also accept the IEC (Importer Exporter Code) issued to the proprietary concern by the office of the DGFT as an identity document for opening of the bank account.
• Complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated and acknowledged by the Income Tax Authorities.
• The utility bills such as electricity, water, and the landline telephone bills in the name of the proprietary concern.
• Issue of GST Registration/Certificate.

Documents Required For Sole Proprietorship Registration

Listed below are the documents required for the sole proprietorship registration process.

Identity and Address Proof

• Scanned copy of PAN card or Passport
• Scanned copy of voter ID/passport/driving licence
• Rental agreement or sale deed (in case of Shops & Establishment Act Registration).

Documents for opening Current Account

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

How to register a sole proprietorship in India

Starting a sole proprietorship in India is easy if all the compliances are properly met. The process of registering a sole proprietorship is easy when you are with Filemydoc.com.

• Step 1: Decide on the suitable business name.
• Step 2: A suitable business location designated as the place of doing business should be selected.
• Step 3: Our team will offer full assistance with the registration process. This could vary between 5 and 15 days, depending on the task at hand for the authorities involved.

Why Filemydoc.com for sole proprietorship registration

Access To Experts : We provide access to reliable professionals and coordinate with them to fulfill all your legal requirements. You can also track the progress on our online platform, at all times.

Realistic Expectations : By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.

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