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Proprietorship

Sole proprietorship, also explained as a sole trader-ship, Self-Proprietor, entrepreneurship, or Sole Entrepreneur, is a type of business operated by a single person in which the owner and the business entity have no legal distinction. A solo proprietor does not have to work "alone"; it is acceptable for a solo trader to hire others.

All gains (subject to business taxes) go to the solo trader, who bears full responsibility for all losses and debts. The owner owns all of the company's assets and is responsible for all of the company's debts. Benefits Complete Control A proprietorship is a firm owned and operated by a single person. Because there are no partners to consult, the owner has complete authority to decide what is best. Easy Setup A proprietorship can quickly create and receive client payments because the registration process is very simple.

Benefits

Complete Control

A proprietorship is a firm owned and operated by a single person. Because there are no partners to consult, the owner has complete authority to decide what is best.

Easy Setup

A proprietorship can quickly create and receive client payments because the registration process is very simple.

Easy Compliance

In most circumstances, the Proprietorship has a considerable advantage because it does not necessitate further compliance. The PAN of the Proprietor and Proprietorship are the same. As a result, only one income tax return is filed each year by the proprietor.

Dissolution

If a person wants to close his business, he does not need approval from a third party like a partnership firm. This benefits, without a doubt, save time.

Requires less investment

In India, forming a sole proprietorship requires relatively little money. As a result, anyone looking to start a firm on a small budget can choose a proprietorship because minimum capital is required.

Information is not disclosed to the public

The financial reports of proprietorship firms are not open to the public, just like the company's financial statements.

Procedure for registering a proprietorship

Step 1

When we receive a request, our professional expert contacts you and guides you through the entire procedure. The expert also provides you with information on the paperwork that must be filed.

Step 2

The registration process begins after the documents are submitted and payment is made.

Step 3

Throughout the process, you will be given a relationship manager who will accompany you through each step.

Step 4

Subject to documentation submission, we can assist you in securing proprietorship registration in India within 5-7 days.

Documents required for Sole Proprietorship Firm

• PAN Card of the Proprietor.

• Aadhar of the Proprietor.

• Address Proof.

• Passport Size Photo.

Compliance Checklist for Sole Proprietorship Firm Registration.

Post Compliances

1. Annual Income Tax Returns must be filed on time.

2. If you have a GST registration, you must file your GST return.

3. If the TDS provision is applicable, then it must follow the TDS provisions of the Income Tax Act 1961.

4. If the proprietor is subject to audit, then it must carry out an audit from CA.

Reason to Choose proprietorship because

• A sole proprietorship is less expensive than an OPC.

• A proprietorship with an annual income of less than Rs. 2.5 lakhs is exempt from paying income tax.

• It's simple to set up with less formality.

Why choose TaxDraw as your Proprietorship Firm Registration service provider?

TaxDraw is an outstanding business platform and a forward-thinking concept that assists clients in India with end-to-end incorporation, compliance, advice, and managing professional services. With TaxDraw, forming a proprietorship firm is simple, frictionless, affordable, and quick! Apart from being a Proprietorship Firm, TaxDraw also assists entrepreneurs in forming Private Limited Company, One Person Company, Public Limited Company, Partnership Firm, and LLPs, and much more.

How can you form a sole proprietorship?

GST (Goods and Services Tax) registration

The proprietor may take GST registration on a voluntary or compulsory basis based on the gross turnover of the business. A unique registration number, also known as the Goods and Services Tax Identification Number, is provided to a business once officially registered (GSTIN). You can download your GST certificate 

Registration for Udyog Aadhar / MSME/ Udyam Certificate 

Small and medium-sized businesses (SMBs) are the backbone of any economy and an engine of economic progress, enabling equitable development for all. The MSMED Act 2006 allows Micro, Small, and Medium-Sized Enterprises (MSME) in the manufacturing and service sectors to get MSME Registration. You can Download your MSME certificate


One Person Company (OPC)


In recent years, the one-person company (OPC) has emerged to refine the sole proprietorship structure.

In an OPC, a single promoter acquires complete control over the company, limiting its accountability for its contributions. As a result, they will be the sole shareholder and directors. A One-Person Company is an entity that is independent of its promoter.

Plans

Rs. 99 All inclusive price

Starter

  • MSME Registration
  • Expert Support
Rs. 499 All inclusive price

Plus

  • MSME Registration
  • GST Registration
  • Expert Support
Rs. 9999 All inclusive price

Pro

  • MSME Registration
  • GST Registration
  • One Year GST Filing
  • Expert Support

FAQ's

Any Indian citizen can start a solo proprietorship. The registration requirements differ depending on the type of business you intend to start.

It takes about 5 to 7 days, depending on how quickly the government processes the documents and how quickly they are submitted.

GST Registration based on threshold limit provided under GST Act. Suppose the yearly revenue from goods of a sole proprietorship is less than Rs. Forty lacs, GST registration, is not required.

You will not receive a Proprietorship Certificate in Proprietorship Registration because alternate registration types such as MSME, GST, and others recognize proprietorships.

It usually takes about 5 to 7 days, and no longer.

Normally small business entity use proprietorship status for his business. Even though larger enterprises can operate as sole proprietorships, it is not suggested because it would be difficult to manage independently.

You may need to open a current account in your business name after submitting necessary business certificate and documents with respective bank branch in which proprietor want to open his bank account.