Sole Proprietorship Registration In India

Legal

Tax

Compliance

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For those of you who are serious about having more, doing more, giving more and being more, success is achievable with some.

Sole Proprietorship Registration In India

Legal

Tax

Compliance

Get Quote Instantly


For those of you who are serious about having more, doing more, giving more and being more, success is achievable with some.

Sole proprietorship is easy and one of the oldest Business Structure for Indians. Proprietor is one person who control, own and manage a proprietorship of business. There are very minimal requirements to start proprietorship as they both are same.
Proprietor cannot have any partner or shareholders. there is no limited liability protection for the sole proprietor. So, this type of business entity is best for small business and less than 5 employees.

PROPRIETORSHIP REGISTRATION

Sole proprietorship is easy and one of the oldest Business Structure for Indians. Proprietor is one person who control, own and manage a proprietorship of business. There are very minimal requirements to start proprietorship as they both are same.
Proprietor cannot have any partner or shareholders. there is no limited liability protection for the sole proprietor. So, this type of business entity is best for small business and less than 5 employees

WHO IS A SOLE PROPRIETOR?

The sole proprietor himself is the owner of proprietorship business. Hence, business will run bu making new bank account and by using PAN and Adhar number you will get a GST registration of the proprietor. All the liabilities and assets of business are owned by proprietor.

HOW TO CHECK PROPRIETORSHIP STATUS?

As we cannot register sole proprietorship neither can we check on any platform the only option left to check the existence of proprietorship is GST portal.

PROPERITORSHIP LEGAL ENTITY STATUS AND RECOGNITION

Business ownership and proprietorship are same for all official work and legal work no separate recognition

SOLE PROPRIETORSHIP REGISTRATIONS AND LICENSES

PAN & ADHAR are mandatory for proprietorship in India. GST registration UDYAM registration is must. Shop act and Establishment act is compulsory in some states.
As per the local regulations additional license and permit may be required.

ADVANTAGES OF PROPRIETORSHIP

East registration: A sole proprietor have to obtain registration and license as pe laws and regulation of India. It does noy have any formal incorporation or dissolution process

Lower compliance: The compliance burden will Be lower as proprietorship is only registered with departments like income-tax and GST, unlike entities like LLP or company which are audited by a charted accountant each year.

Simplicity: no interference in decision making as there are no partners and shareholders. It is best suited for small business.
Business decision: being a sole owner no consent or approval is required. Hence quick decisions regarding business affairs can be taken.
Complete control: being the sole owner he or she has complete control over her assets, revenue, expenses and operations.

DISADVANTAGES OF SOLE PROPRIETORSHIP

Funding: as this is sole business means there is no partner involved, the proprietor has to pay from his own pocket and savings or have to borrow from bank which will be impossible.

Personal liability: If proprietor is unable to pay loans all the liabilities of that person will be held unless the proprietor pays all loans.

Business continuity: All the proprietorship will be automatically dissolved and business will be discontinued id the owner is dead or disable.

Growth: A proprietor in unorganised sector can run a very small business due to various restrictions like fundraising liability and business.
Unincorporated Business: sole proprietorship entities are mostly classified as unorganised business as no centralized database available whether it is active or not.

REGISTERING A PROPRIETORSHIP ONLINE THROUGH INDIAFILINGS

Only 15 days are required to obtain GST, UDYAM and zero-balance Business Account with LEDGERS accounting software registrations and after that you can easily register a Proprietorship online through India filings by using PAN and Aadhar card.

Once registered on indiafilings follow the below steps and upload following documents by logging into LEDGERS

Step 1: Login to LEDGERS using the email address for payment.

Step 2: Go to Services Tab & Select Proprietorship Engagement

Step 3: Upload your PAN & Aadhar Card Copy

Step 4: An IndiaFilings Registration Expert will file the registration application with GST Department, MSME Department and Bank for Current Account.

Step 5: Access to LEDGERS Accounting Software is provided for GST invoicing, GST filing and other services.

PAN Card for proprietorship firm

As this is not a separate business entity there is no different PAN card, the owners PAN card is used for the same.

Obtaining GST registration for proprietorship

IndiaFilings provides GST registration for proprietorship with following documents:
1. Permanent Account Number of Proprietor
2. Digital signature Certificate of the Authorized Signatory
3. Consent by proprietor for GST Registration
4. Photograph of Proprietor and Authorized Signatory
5. Bank account details: A scanned copy of cancelled cheque with the business entity’s name, bank account number, MICR, IFSC and branch information
6. Declaration/ Authorization to Authorised Signatory
7. For commercial purposes, rent/ lease agreement should be in the name of the proprietor.
8. Additional documents such as Aadhar Card, driving license, passport, voter ID in the name of the owner with the complete address of the premises should also be provided if the address on the ownership document (property tax receipt or Municipal copy or copy of electricity bill) is incomplete.

Obtaining UDYAM Registration for proprietorship

UDYAM registration gives you various benefits for small and medium business if done online. If you have a GST registration then just by submitting Aadhar, PAN and GST certificate to government the India Filings team would help you obtain UDYAM registration.

BANK ACCOUNT FOR PROPRIETORSHIP

The banks current account will be opened in the name of business owner using PAN. The basic requirement for business is to submit proof of doing business following are the documents for opening current instead of savings

1. GST registration certificate

2. Shop and establishment act license

3. License issued by the Registering authority like Certificate of Practice issued by institute of chartered Accountants of India, Indian medical Council, food and Drug control Authorities.

OBTAINING SHOPS AND ESTABLISHMENT ACT LICENSE FOR PROPRIETORSHIP

The following documents are required for the GST registration

1. Permanent account number (PAN) of proprietor
2. Digital Signature certificate of the authorized Signatory
3. Consent by proprietor
4. Photograph of proprietor
5. A scanned copy of cancelled cheque with the business entity’s name bank account number, MICR, IFSC and branch information
6. Declaration / Authorization to authorized Signatory
7. For commercial purposes, the rent/ lease agreement should be in the name of the proprietor.
8. Aadhar card, driving licence, passport or voter ID of owner with complete address if the address on the ownership document is incomplete.

Obtaining UDYAM Registration for Proprietorship

For small and medium size business UDYAM registration can be obtained ONLINE TO Aviel various benefits. The India Filing team would help obtain UDYAM by submitting Aadhar card, PAN card and GST certificate to Government.

Bank Account for Proprietorship

The business owner will have to open current bank account in the name of owner using His/ Her PAN. He has to submit proof for doing business. To create a current account and two of the following documents can be submitted in the name of proprietor

1. GST Registration certificate
2. shop and Establishment act license.
3. Certificate of practice issued by Institute of Chartered Accountant of India, Cost accounts of India, Institute of Company Secretary of India, Indian Medical Council, Food & Drud Control Authorities.
4 For opening a bank Account IEC code (Import Export Code) can be given by the Proprietor as an identity document.

Obtaining Shop & Establishment Act License for Proprietorship

The process for obtaining shop and Establishment Act License for Proprietorship vary from state to state, available both online and offline. Generally obtained in 2 to 3 weeks

Timelines for sole Proprietorship Registration

The timeline for registration varies from case-to-case spending on the government and bank processing timeline.
It can normally be registered through India filling in less than 15 days.

PROPERIOTERSHIP BUSINESS ACTIVITIES

A proprietorship can undertake any type of business activity across most sectors and industries. Some activities like banking, insurance, financial services Lending, defence, Telecommuncation requires special approval from government. Hence Proprietorship business structure works for small scale business activities.

Compliances for Proprietorship

Income tax Filing: The Proprietor have to file personal IT Return using form ITR-3 ITR-4

Business income: All Proprietors have to file Form ITR-3 ITR-4 for declaring business income.

GST Return Filing: GST Return must be filed every month and quarter as per the scheme under which the business is registered.

TDS Returns: Tax must be deducted at source and TDS Return must be filed every quarter in case the Proprietorship is having employees or purchasing of goods and services beyond a limit.

Based in the Industry & location additional compliances may be applicable