Proprietorship Firm |

Proprietorship Firm

A sole proprietor is also referred to as a sole trader. A single individual manages the business hence, the name sole proprietor. The process of sole proprietorship registration can either be offline or online

Sole Proprietorship Registration Online – Benefits, Process, Documents, Fees

Sole Proprietorship firm is the simplest form of business entity in India which is owned and managed by a single person. It is the easiest way of registering and starting a business.

Benefits of Proprietorship Firm Registration

Minimal Compliances: A proprietorship firm has very minimal compliance requirements which makes it much more preferable option than One Person Company.

Easy to Start: Sole Proprietorship is not governed by any law and does not require any mandatory registration. Hence, it is the easiest way of starting a business entity.

Lower cost: As there are minimal compliances, there is no need to hire an auditor for meeting the legal compliance requirements.

Complete control: As a proprietorship firm is owned by a single person, he has the complete control over the business decisions and there are no interventions of any kind.

Sole Proprietorship Firm Advantages

No Compulsory Registration

Shops and Establishments Act

MSMED Act

Goods and Services Act, 2017

Shops and Establishments Act

MSMED Act

Goods and Services Act, 2017

Limited Capital Requirements

Minimum Compliance

Single Individual

No Sharing of Profits

Easy to Register and Form

Sole Decision Making

Sole Authority

Profit Making Power on Sole Owner

Low tax liabilities

Easy to control as managed by single promoter

Freedom to choose any business name but not registered by a company

Easy to start with the minimal registration process

Easy to shut down the company with very less compliances

Taxes – All business profits are personal income for a proprietor and pay self-employment tax on those profits

Procedure of Sole Proprietorship Firm Registration

Application for GST Registration

MSME Registration

Application for Shop and Establishment License

Bank Account Opening

Post Compliance requirements for Sole Trader

The following post compliance requirements have to be considered by a Sole Trader

GST Registration- If required-

20 Lakhs in the case for services

40 Lakhs in case of trading activities.

GST returns have to be made quarterly

Intellectual Property Registration- if required-

Trademarks

Copyrights

Designs

Income Tax Filings

Income Tax Returns Filings

Tax auditing requirements and compliance

Documentation of invoices for filing GST tax

Financial Statements

Documents Required for Sole Proprietorship Registration

Respective documents for registering with the municipal authorities

GST Registration Certificate

IEC Certificate

Licenses granted by medical authorities, pharmaceutical and other authorities to carry out the business.

FSSAI Registration and License Certificate

Utility Bills- Such as electricity and water

Rental Documents- in case the place is leased out, then NOC (no objection certificate) is required.

PAN- Permanent Account Number

Address Proof

Bank Account information

Aadhaar Card

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