Sole Proprietorship Registration
Start your business as proprietorship quickly within one day. There is no specific registration requirement for a proprietorship business. However, to start the same, some other registrations are required as it is included in our basic package. The Sole Proprietorship is the simplest form of business in which enterprises can start. Only one person invests entire capital in the firm, and he alone is entitled to the business’s profits.
Quick Method to Start a Proprietorship Firm
- Decide Name and File for Trademark
- Apply Pan Card of the Proprietor
- Obtain TAN Number for TDS Compliance
- Apply for GST Registration
- Remember to Register as MSME
Advantages of Proprietorship Formation
A Proprietorship can commence its business immediately at the will of the proprietor, there is no specific registration is mandatory, however GST and MSME is desirable
The income of the proprietorship Firm is included in the income of its proprietor itself. Hence slab based income tax rates apply, which results in a substantial tax benefit.
No Foreign Funding
The foreign Investment (FDI) is not permissible in a proprietorship, However an NRI can invest in proprietorship firm provided the profits are not repatriated out of India.
Easy to Close
In case the proprietorship is no longer required, it can be closed easily, just surrender all registrations and licenses obtained by the proprietorship business.
Documents Required to Register Proprietorship
Basic Documents to Start a Sole Proprietorship
- Proof of Registered Address
- It should not be older than 2 months
- NOC from the Owner of Premises
- Canceled Cheque of Proprietor
Self Attested Documents of the Sole Proprietor
- Two Photograph
- Copy of PAN Card
- Valid Identity Proof
- Latest Address Proof
Process & Timeline for Starting Proprietorship Firm in India
- Documentation – Day – 1 The process starts with documentation of the proprietor and the place of business where the business of the firm shall be carried on, ensure that the documents are updated and correct. The list of documents required is provided for your reference. We shall also require information in the For Proprietorship Registration.
- Selection of Name – Day – 1 First thing is to select a unique name of your proprietorship business and the starting point should be to search the proposed name of the business in trademark register to avoid any infringement on someone else’s trademark. To learn more on trademark
- MSME – UDYOG Aadhar – Day – 1 To open a bank account there is need of two documents in the name of the proprietorship, one of the registrations could be Udyog Aadhar which enables an entrepreneur to seek online services offered by Government Departments apart from various other benefits under MSME Act. To learn more on MSME Registration,
- GST Registration – Day – 1-7 You may not be able to supply goods or services all over India unless GST Registration is obtained, However for same state supply the limit is 20 Lac. This also serves as a second document document issued for the proprietorship, which shall be required by banks while opening a bank account in the name of the firm.
- TAN Number Allotment – Day – 1-7 TAN number is a permanent number allotted to business for complying with the provisions of withholding tax. You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.