Proprietorship Registration
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Starting a Proprietorship Firm is easy, simple and cost-effective. We offer free consultation, GST Registration, and Udyam Enrolment (MSME) in our packages to set up a proprietorship firm. Talk to our start-up advisors today.
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Proprietorship is the simplest form of business that does not require any registration. However to open bank Account and do business as proprietorship two registrations are required.
Inclusions
- GST Registration
- MSME Registration
- Free Consultation
- Bank A/c Opening Support
Important Points
- Suitable For Small Business
- NRI/PIO Can Start A Proprietorship Firm on Non-Repatriation Basis.
- Foreigners & Non-Citizens Are Not Allowed To Form A Proprietorship.
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Meaning of Proprietorship Business
A proprietorship firm is a single owner business, where the owner is not only entitled to hold the ownership, but is also responsible for the complete management and administration of the business. Moreover, a proprietorship does not have a distinct legal and financial identity, separate from the proprietor. This means that there is no need of Proprietorship registration under law, and that all transactions related to the business shall be carried out through the personal bank account of the proprietor. The proprietor is thus 100% liable towards the business, and shall be required to pay off the liability from his personal pocket. The existence of a proprietorship cannot extend beyond the life of its proprietor.
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Key decisions to be made while setting up a Proprietorship
- The name of the proprietorship?
- The amount of capital to be invested?
- The authorised capital of the proprietorship?
- The proposed business activity of the proprietorship?
- The registered business address of the proprietorship?
- Whether the proprietorship shall undertake MSME registration?
Checklist for Proprietorship Registration
Proprietorship registration in India is quite easy and simple, as there is no need to incorporate it, under any specified law. All that you require is a single person to own, manage and fully control the business. However, there are certain provisions that place restrictions on a proprietor, which have been mentioned in the table below, along with other minimum requirements for proprietorship firm registration. While proprietorship registration is not required, it must still undertake all necessary tax registrations akin to any other business operating in India.
- An Investor who is an Indian citizen above 18 years of age
- Prior government approval if the investor is a non-resident Indian
- Invest a certain amount of capital
- A new unique and valid name
- A registered address of the proprietorship
Stepwise Sole Proprietorship Registration Process
Complete your proprietorship registration within a single day. All you need to do is place an online order with us, and we shall help you start your proprietorship firm in no time. Your order for proprietorship firm registration shall be processed by our team of highly qualified, skilled, and experienced professionals who shall ensure that the best quality services are provided to you. As mentioned earlier, our process of proprietorship firm registration is completely online, and there is no need for you to visit our office. Please do contact us for any clarifications you need.
STEP 1 – Documentation
The process of proprietorship registration starts with documentation of the proprietor and the principal place where the proprietorship shall carry out its business activities. A complete list of the documents required have been mentioned below. You shall have to ensure that the documents are authentic and updated. Please fill out the questionnaire that we share with you and all the documents that we ask for at help@setindiabiz.com, after quoting the details of the order you’ve placed. STEP 2 – Select a Unique Name
The first step for proprietorship registration is to select a unique name for it. The name must be valid and must not infringe the IP rights of any registered trademark. You can begin the process by searching the availability of the names proposed in the public database of trademarks present on the IP India portal. Also make sure that after selecting the name of your proprietorship business, you register it as a trademark to prevent it from being misused or plagiarized in the future. STEP 3 – MSME / Udyam Registration / Udyog Aadhar
For opening a business bank account, you need two mandatory documents in the name of your proprietorship. The first one is the Udyog Aadhar card and the second is the MSME or Udyam Registration Certificate. These documents enable an entrepreneur to seek online MSME services and benefits offered by various Government Departments, in addition to the benefits offered under the MSME Act.
STEP 4 – GST Registration
You cannot supply goods or services throughout India, unless your proprietorship firm obtains GST Registration. However, if your business activities are restricted only within one state, GST registration shall not be required until the turnover crosses Rs 40 lakh in case of supply of goods, and Rs 20 Lakh in case of supply of services. Click here to learn more on GST Registration. STEP 5 – Other Tax Registrations
Based on the nature of business activity and the prime location of business, a proprietorship firm may be required to obtain TAN, IEC and PT Registrations. TAN is required to comply with TDS laws while the IEC Code is required for businesses involved in import and export of goods or services. Proprietorships are required to obtain PT registrations in certain states where Professional Tax is mandatorily imposed on professionals. Documents Required for Sole Proprietorship Registration
Although, proprietorship registration in India is not required under any specified law, it does require several other tax and legal registrations like any other form of business would. These include opening a bank account, finalising a registered office address, GST registration, Professional tax registration (if applicable), Shops and Establishment Registration, and MSME registration. The list of documents required for all the above mentioned registration to complete proprietorship registration in India, have been mentioned in the table below
| A. DOCUMENTS OF THE PROPRIETOR | B.DOCUMENTS OF THE REGISTERED ADDRESS FOR PROPRIETORSHIP REGISTRATION |
|---|---|
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After successful payment, please download the questionnaire, fill it out and send it to us at help@setindiabiz.com along with the above mentioned list of documents for further processing. |
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Frequently Asked Questions About Sole Proprietorship Registration
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A sole proprietorship firm is the simplest form of business owned and controlled by a single individual. The owner of the proprietorship firm is known as the proprietor. The proprietor alone invests the entire capital and is thus entitled to all the income of the sole proprietorship. The liability of the sole proprietor is unlimited to its business, meaning that the proprietor is liable to pay all its losses and debts from his personal pocket, if such a need arises.
A sole proprietor is the only owner of a Sole Proprietorship business. Any person who is above 18 years of age and who is otherwise capable of entering into a lawful contract is eligible to start a business as a proprietorship. The option to own a proprietorship is available to Indian Citizens only. However, NRIs and OCIs are permitted to establish proprietorship firms and invest only on a non-repatriation basis, otherwise seek a prior approval of the Central Government.
Proprietorship registration is extremely easy and simple as there is no requirement for its registration under any law. No agreement, deed, or documents are required to be prepared for proprietorship registration in India.
A proprietorship is a single owner business, with no separate legal and financial identity from that of its owner. Proprietorship Registration is not required under any specific law. Apart from a few basic tax and legal compliances, a proprietorship is free from the burden of compliances when compared to other forms of businesses. It enjoys the benefits of low tax rates categorised into individual tax slabs based on the income of the business. Besides, most proprietorships are small businesses, and are thus entitled to benefits of the MSME scheme, provided they are registered under the scheme. To learn more, check out our comparison table for different forms of business in India, including proprietorships. Compare Forms of Business
The opening of bank accounts of proprietorship businesses is regulated by the Reserve Bank of India. It has prescribed the submission of at least two identity proofs of the proprietorship in order to open its bank account. To open the bank account for the business, you can approach any bank near you, and submit the prescribed application form along with the prescribed documents. Please click here to read our article on the List of required documents for the proprietorship firms’ opening bank account.
Yes, the proprietorship businesses can be converted to LLPs or Private Limited Companies. However, the conversion process is complicated, and unless it is not necessary, we do not recommend conversion of your proprietorship business into any other form.
Proprietorships do not have a separate legal identity and hence, are not treated separately for income tax purposes. This means that any profit derived from a sole proprietorship is treated as the income of the proprietor, and is accounted for on the returns filed by the proprietor. The business income shall be shown as separate income in the income tax return of the proprietor.
The sole proprietorship is established at the proprietor’s will and to establish it, all you need is the PAN Number of the proprietors, which shall also be treated as the PAN of the proprietorship. Open a current bank account in the name of the proprietor, following which the business can commence its operations. We recommend the protection of the Trademarks related to the proprietorship firm. Based on the turnover of the business, GST may be applicable.
Yes. Unlike other incorporated business forms, the liability of the proprietor towards his sole proprietorship is unlimited. This means that debts and losses accumulated by the business shall be paid off using the personal income, assets, or properties of the proprietor.
We strongly recommend a consultation with our experts on business formation before you plan for proprietorship registration. Our consultation services are free of cost and are available without any obligation to avail of our services. As each form of business is unique, there may be circumstances where a partnership, Limited Liability Partnership (LLP), Private Limited Company or any other kind of business structure fits the needs of your business, better than a proprietorship. Our experts will guide you and help you in making an informed decision while choosing the appropriate structure for your business. You also may want to get more insight into the specific liabilities your sole proprietorship may face, before initiating the process of setting it up.
Yes. A proprietorship firm is a legal form of business that is fully recognised by e-commerce platforms in India. You can very well enlist your proprietorship firms with the e-commerce businesses and marketplaces like Amazon and Flipkart.
Yes, a proprietor can be appointed as a director of a private limited company without any problem.
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Registration no more a tedious task with setindibiz.All process are simplified.Just sign some documents and get you establishment registered.
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Applied for startup recognition certificate, work done in scheduled time with good coordination of teamThank u
Shubendu was good, in explaining what would work well for us in terms of company registration and overall process was smooth.Giving 4 star as i had to followup on a couple of occasions , otherwise all good.
I'm very happy to apply my Company Registration with Setindiabiz.Below are the reasons:Very ProfessionalEverything was done as per committedYou get every help when you need.All the coordinator was very proactiveAll my appreciation and a big thank you to the team from Setindiabiz.
I have interacted with Mr. Sushant on our day-to-day work with SETINDIABIZ and he is amazing gentleman. Quick response and soft spoken are his great strengths. I enjoy interacting with him.
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Timely Service and reminders provided along with proactive assistance in all matters of financial accounting.
Extremely responsive great team. I had a wonderful experience. The team kept me updated of every action and executed the task expeditiously. I wish Ms Misba from SetIndiaBiz and her team all the very best in every future endeavours of theirs.
Great services for filing for income tax, GST registration and company registration. Have been using their services for the last 5 years. No need to visit any of their offices as everything happens on the phone and online.
