Sole Proprietorship Registration 100% Easy Online Process & Transparent pricing

For a single owner, the Sole proprietorship is the simplest form of business and the easiest to create that involve less costing and compliances. This type of business can be formed within 1-3 days. Register your Business as Sole Proprietorship at Rs 1770/- Only.  To Start the process of Proprietorship Registration Chat with our Startup Team.

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Proprietorship Registration Fee

₹1999 1770
  • GST Registration
  • MSME Registration

Documents required for Proprietorship Registration

Documents of Proprietor

  1. Self attested copy of Pan Card
  2. Self attested copy of Adhar Card
  3. Photograph of Applicant
  4. Cancel cheque of Proprietor 

Business Address Proof

  1. Electricity Bill, Property tax receipt, Sale Deed, Rent Agreement
  2. NOC from Owner of Premises
  3. Electricity bill would not be older then 2 month

Looking to start the Process? Contact our Startup Experts

Advantage of Proprietorship Registration

Easy to Establish

A sole proprietorship business does not have any specific registration requirements and the proprietor’s legal identity is used by the business. Hence, a proprietorship can be started without any registration. Using the PAN and Aadhaar of the promoter, Udyog Aadhaar registration and Trademark Registration can be obtained optionally to create and protect the identity of the business.

Easier to Operate

As a single person is at the helm of affairs, it is easier to operate as the particular person will be the sole decision maker and he need not consider a plethora of opinions. There is no concept of a board meeting or approval from other persons in a proprietorship firm.

Sole Beneficiary of Profits

No other business, other than that of a sole proprietorship and one person company, entitles the owner as the sole beneficiary of profits. In all other types of an entity like a partnership, LLP or company, a minimum of atleast two persons are involved.

Compliance & Taxation

Since a proprietorship firm is not registered with any Government authority like the Ministry of Corporate Affairs, the compliance requirements are minimal. Further, the proprietor would only have to file income tax returns.

Disadvantages of Proprietorship Registration

UNLIMITED LIABILITY OF THE OWNER

Since a sole proprietorship does not create a separate legal entity, the business owner faces unlimited personal liability for all debts incurred by the entity. In other words, if a business cannot meet its financial obligations, creditors can seek repayment from the entity’s owner, who must use his or her personal assets to repay outstanding debts or other financial obligations.

LIMITATIONS ON CAPITAL RAISING

Unlike partnerships and corporations, sole proprietorships generally enjoy fewer options to raise capital. For example, the owner cannot sell an equity stake to obtain new funds. In addition, the ability to obtain loans depends on the owner’s personal credit history.

Sole Proprietorship Registration Process

Start your business as a proprietorship quickly within one day. The process begins with the online order at setupfiling.com. Once the order for proprietorship setup is processed, we will initiate the documentation and further process. As said earlier, the process is entirely online, and there is no need for you to visit our office. Please do contact us for any clarification.

Step - 1 Documentation

The process starts with documentation of the proprietor and the place of business where the firm shall carry out its business, ensuring that the documents are updated and correct. Please share all Documents on info@setupfiling.com.

Step - 2 - Finding out Unique name

The first thing is to select a unique name for your proprietorship business. The starting point should be to search the business’s proposed name in the trademark register to avoid infringement on someone else’s trademark. Click here to learn more about Trademark.

For opening a bank account, there is a need for two documents in the proprietorship name. One of the registrations could be Udyog Aadhar, enabling an entrepreneur to seek online services offered by Government Departments apart from various other benefits under the MSME Act. Click here to learn more on MSME.

You may not supply goods or services all over India unless the proprietorship firm obtains GST Registration. However, if you are doing business only within the state, GST is not required until the turnover of Rs 40 lakh in case of Goods and Rs 20 Lakh in case of services is reached. Click here to learn more about GST.

Step -5 Other Tax Registration

Based on the business, the proprietorship firm may obtain TAN, IEC and PT Registration. The TAN is required to comply with TDS provisions; IEC Cose is necessary for import and export business. Some states impose a professional tax, and thus, PT enrollment and registration may be required.

Difference between Sole Proprietorship and One Person Company

Looking to start a Business, all by yourself? You have two options: opening a sole proprietorship or a one-person company. Read this article to make the right decision. Until a few years ago, a sole proprietorship was the only option for a person who wants to start a business by themselves. Now you have an alternative option: a one-person company. The concept of the one person company (OPC) allows a single person to run a company limited by shares. A sole proprietorship is an entity that is run and owned by one individual where there is no distinction between the owner and the business. In this articale we are going to discuss about difference between OPC and Sole Proprietorship. Learn More>>

Comparison among different type of Business Registration Options in India

Features Private Limited Company OPC LLP Partnership Sole Proprietorship

Applicable Law

Companies Act, 2013

Companies Act, 2013

LLP Act, 2008

Partnership Act 1932

No Law Applicable

Number of members

2 - 200

1

2 - Unlimited

2 - 20

1

Number of Directors /DP

2 - 15

1-15

2 - Unlimited

1-20

1

Formation

Through ROC

Through ROC

Through ROC

Agreement

Easy

Tax Benefits

The income tax rate for companies engaged in manufacturing activities is only 15%, while for all other newly set up companies it is 22%

The income tax rate for companies engaged in manufacturing activities is only 15%, while for all other newly set up companies it is 22%

LLP Income Tax Rate is 30% on its profits

Partnership firms are taxed at 30% on its profits

For a small business with low turnover, there is the benefit of individual tax slabs.

Statutory Compliance

High

High

Low

Low

Minimum

Foreign Investment (FDI)

Foreign Direct Investment in case of a Private Limited Company is available under the automatic route.

FDI is not allowed in One Person Company

FDI in LLP Is permitted at par with the companies

FDI not Allowed 

FDI not Allowed 

Separate Legal Entity

A Company is a separate legal entity separate from its promoters

An OPC is a separate legal entity separate from its promoters

An LLP is a separate legal entity separate from its promoters

A Partnership is a legal entity but not different from partners

The proprietor and the proprietorship business is the same thing

Limited Liability

Liability Limited - Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company.

Liability Limited - In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital

Liability Limited - The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to.

Liability Not Limited - There is no protection of limited liability, even the personal properties of partners are at risk for losses of business

Liability Not Limited - The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited.

Ownership Transferability

The shareholding of a Pvt Ltd Company is easily transferable

OPC Shares can be transferred to new shareholder along with the nominee

In LLP contribution/share of a partner can be transferred with the consent of all other partners.

Not Possible, every admission or removal of a partner amounts to the new firm.

Not Applicable

Perpetual Existence

A Company exists beyond the life of its owners /shareholders. After the death, the shares transmits to legal heirs

OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee.

The LLP also have perpetual existence and exists beyond the life of the designated partner

No perpetual existence, with the death of a partner, the partnership ends.

No perpetual existence, with the death of the proprietor, it ends.

FAQs on Sole Proprietorship

Please Refer following Link - click here 

Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.

A Sole Proprietorship business does not take more than 15 days to set-up and start functioning. This simplicity makes it popular among small traders and merchants. It's also much cheaper, of course. This is the other reason why it's the most widely used business structure.

Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.

This depends on the business you're in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under Shops and Establishments Act.

The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.

As there is no difference between the business and its owner in the case of proprietorship, Unlike corporations, sole proprietorships are not treated separately for income tax purposes. This means that any profit derived from your sole proprietorship is treated as your income and is accounted for on your tax return. Any such income is taxed to you in the year it was received or accrued to you. The business income shall be shown as separate income in the income tax return of the proprietor.

yes, a proprietor is an individual and can be appointed as a director of a private limited company without any problem