A sole proprietorship, also described as a sole trader ship, individual entrepreneurship, or proprietorship, 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.
A proprietorship is a firm that is owned and operated by a single person. Because there are no partners to consult, the owner has complete authority to decide what is best.
A proprietorship can quickly create and receive payments from clients because registration process is very simple.
In most circumstances, the Proprietorship has a considerable advantage in that it does not necessitate any further compliance. The PAN of the Proprietor and Proprietorship are the same. As a result only one income tax returns filed each year by proprietor.
If a person want to close his business, he does not need approval from third party like partnership firm. This, without a doubt, saves time.
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.
The financial reports of proprietorship firms are not open to the public, just like the financial statements of company.
When we get a request, our professional expert contacts you and guides you through the entire procedure. The expert will also provide you with information on the paperwork that must be filed.
The registration process has begun after the documents are submitted, and payment is made.
Throughout the process, you will be given a relationship manager who will accompany you through each step.
Subject to documentation submission, we can assist you in securing proprietorship registration in India within 5-7 days.
• PAN Card of the Proprietor.
• Aadhar of the Proprietor.
• Address Proof.
• Passport Size Photo.
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 TDS provision applicable, then must follow TDS provisions of Income Tax Act 1961.
4. If the proprietor is subject to audit, then must carried out audit from CA.
• 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.
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.
Proprietor may take GST registration on voluntary basis or compulsory basis based on gross turnover of business. A unique registration number which is also known as the Goods and Services Tax Identification Number, is provided to a business once officially registered (GSTIN).
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 both the manufacturing and service sectors to get MSME Registration.
The DGFT (Director General of Foreign Trade) can issue an Import Export Code (IEC) in the company's name. However, this is possible if the claimed Proprietorship firm deals in the export and import.
The proprietorship firm must register with the FSSAI only if it sells or handles food items. In addition, the proprietor obtains an FSSAI license registration in their name (Food Safety and Standard Authority of India).
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.