Proprietorship Firm Registration
A proprietorship firm is ideal for small-scale businesses or startups where the owner prefers complete control and has a manageable risk profile. For larger businesses or those seeking investment, other structures like private limited companies may be more appropriate.
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Guaranteed document upload to the government portal under 7 days or get a full refund .Transparent process starting from Just ₹499 + GST
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Hikmadh ‘s incorporation experts register over 200 companies every month.
Starter/Lite
Ideal for initiating company registrationWhat you’ll get
Expert assisted process
GST or MSME registration(Anyone)
Standard
Perfect for registration and tax filingsEMI Option Available
What you’ll get
Expert assisted process
GST registration
MSME registration (Udyam)
GST filing for one financial year (upto
300 transactions)
ITR filing
Instant zero balance current A/c
Premium
Perfect for registration, tax filings and brand protectionEMI Option Available
What you’ll get
Expert assisted process
GST registration
MSME registration (Udyam)
GST filing for one financial year (upto
300 transactions)
ITR filing
Trademark registration
Instant zero balance current A/c
Sole Proprietorship - Overview
A sole proprietorship is a type of business owned and run by a single individual. It is commonly known as a proprietorship, solo entrepreneurship, or lone tradership. This structure is particularly suited for small businesses. In a sole proprietorship, there is no legal separation between the owner and the business entity. The sole proprietor has the option to hire employees to work for the business. All profits generated by the business are taxed as personal income for the owner, and any debts or assets of the business are personally the proprietor’s responsibility. Additionally, a sole proprietor can operate under a trade name or business name that differs from their legal name.
Why Opt for a Sole Proprietorship?
A sole proprietorship allows an individual to have complete control over their business. It involves fewer legal requirements, compliance issues, and regulations. This business structure can also enhance organizational commitment among employees. Additionally, setting up a sole proprietorship is straightforward and simpler compared to other business forms, and it offers straightforward tax filing.
Who Should Consider a Sole Proprietorship?
Anyone looking to start a business quickly and with minimal capital should consider a sole proprietorship. It can be established within a few days and provides the owner with total control over the business.
Advantages of Sole Proprietorship
A sole proprietorship offers several notable advantages that make it an appealing choice for many entrepreneurs. Firstly, it provides complete control over all business decisions and operations, allowing the owner to implement ideas and changes swiftly without needing approval from others. The setup and management of a sole proprietorship are straightforward, involving minimal paperwork and regulatory requirements, which reduces initial costs and administrative burdens. Additionally, the business profits are taxed as personal income, simplifying tax filing by eliminating the need for separate corporate tax returns. All earnings from the business directly belong to the owner, offering immediate access to profits that can be reinvested or used personally. The structure also provides flexibility, enabling easy adjustments and adaptations to market changes or personal circumstances. With fewer regulatory and compliance requirements, the business benefits from reduced ongoing costs and simpler operations. Furthermore, sole proprietors often experience easier banking and financing processes and can build stronger personal relationships with customers, enhancing loyalty and service quality. Overall, a sole proprietorship is an ideal option for those seeking a simple, cost-effective, and adaptable business structure while retaining full control and enjoying direct financial benefits.
Checklist for Sole Proprietorship Registration
The checklist for registering a sole proprietorship in India are:
- Choose a Business Name: Select a suitable and unique name for your sole proprietorship.
- Open a Business Bank Account: Set up a bank account in the business name.
- Register as an MSME: Obtain registration as a Micro, Small, and Medium Enterprise (MSME) if applicable.
- Procure Required Licenses: Obtain necessary licenses such as the FSSAI license (for food businesses) or a license under the Shop and Establishment Act.
- Get GST Registration: Register for Goods and Services Tax (GST) if your business meets the criteria.
- Register for ESIC/EPFO: Depending on your business needs, register for Employees’ State Insurance Corporation (ESIC) or Employees’ Provident Fund Organization (EPFO).
- Obtain Certifications: Acquire all required certifications under the Shop and Establishment Act of 1947, if applicable.
Eligibility Criteria for Sole Proprietorship Registration
The eligibility criteria for sole proprietorship registration are :
- The applicant should be above 18 years
- The applicant should be an Indian Citizen
- They should have the legal capacity to enter into a contract
- The proprietor should not have any legal disabilities
- Applicant should not be declared bankrupt or convicted for felony previously
- The purpose of the business should be clearly outlined while starting a sole proprietorship
- The business should be a lawful activity and should prevent selling illegal goods and services
The business should have a unique name that was not registered previously.
Required Documents for Sole Proprietorship Firm Registration
The following documents required for Sole Proprietorship Registration:
- Aadhaar card of the sole proprietor
- Permanent Account Number (PAN) card or any other identity proof of the sole proprietor
- Bank account details in the name of the proprietorship
- Address proof of the business
- Rental agreement of the registered office address
- NOC from the landlord
- Electricity bill, Utility bill or sale deed in case it is a self owned property
- MSME registration certificate
- Shop and establishment Act licence or Trade license (if applicable)
- GST number or GST certificate
Steps to Register a Sole Proprietorship in India
There are four steps to register your Sole proprietorship in India
Day 1-2
Document submission & verification
Day 3-5
Application FIlling
Day 5-7
Successfully Company Registration
1: Register your Business Name
Consult our legal experts and choose a proper name for your sole proprietorship. Our team will assist you in registering your business name.
2. Get your PAN, GST, and MSME Registration Done
Our team will help you get your Udyam registration certificate and GST registration done in one go!
3. Filing for Sole Proprietorship Registration
Submit all the required documentation, and we will file the registration form for your sole proprietorship.
4. Open a Current Account
After business registration we will assist you in opening an instant zero-balance current account. Our team also provides GST, ITR annual filing, and trademark registration support.