Sole Proprietorship

Simplest and a very popular form of Company Registration in India. Prices Starting from INR 1599/- only.

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  • Udyam Registration
  • TAN
  • Shop-act License
  • GST Registration
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  • Accounting for 1st Financial Year - Excluding Audit Fees and entries up 300
  • Income Tax Return for 1st Financial Year


Sole Proprietorship in India

Sole Proprietorship Registration is a perfect option for individual entrepreneur, sole trader or someone who does not want to get into the long process of forming a company. In addition, setting up a new company requires an initial expenditure for of fees which is not the case with sole proprietorship. First step starts with just taking permission from local authorities by way of Shop Act License / Intimation and opening a current account to ensure safe payments in the proprietorship's name. Hence, obtaining a shop act license and opening a current account is considered to be the groundwork for starting this type of business. Sole Proprietorship is one of the most common structures of business in India. Sole Proprietorship is a single person establishment where the individual manages and controls their business on their own. Accordingly, it is cost-effective as there no fees to pay during the initiation of the process.

Few Other Benefits of Starting a Sole Proprietorship Firm
- The owner has overall control over business and finances
- Quick decision and prompt action
- Requires no minimum capital investment
- The profit solely belongs to the proprietor
- Benefit of minimum threshold limit in Income Tax and exemptions
- Require to file an annual income tax return and pay tax as an individual. No separate tax for the firm
- More tax saving compared to other business structures in India
- Very easy to start and wind up
- Process is very time saving
- Suitable for small scale operations

Mandatory Requirements to Start a Sole Proprietorship
The four necessities to start the business are
- Aadhar card
- PAN card
- Bank account (Current account is advised)
- Registered office proof (Rent Agreement or Property Documents etc)

Starting the Business
The process of registration is mainly to mark the existence of the establishments. In the case of registration, the corporation is brought into being through the eyes of the government. On the other hand, staring the business is bringing it into reality and thereby attaining functionality. In India, a sole proprietorship can be established with only two things:
- Choosing an apt name for the business
- Choosing the location of the business

Registration of Sole Proprietorship
There is no rigid protocol to register a Sole Proprietorship. Because this is an extension of the proprietor. Nonetheless, its existence is established by generating a bank account in the name of the proprietorship. Otherwise, it can be through attaining the licenses necessary to conduct business such as license under Shop and Establishment Act

By Opening an Bank Account
The most important step in opening an account is the submission of correct documents. Thereupon, any of documents from the list below can be used for this purpose as per requirements of banks:
- PAN Card of proprietor
- Aadhaar Card of proprietor
- License or certificate from Municipal Officials under Shop and Establishment act
- Property Registration document
- Rent Agreement along with utility bill
- License from registering Authority
- License for the concerned individual from central or state government
- IEC code
- Income Tax return of the proprietor (Complete)
- Utility Bills
- Depending on the type of business, the license issued for registration varies. Few of them are:

GST Registration - For manufacturing and trading businesses in India with expected turnover over Rs 40 Lakhs and Rs 20 Lakhs for special category states should get GST registration done. Further, all the businesses related to goods and services must possess a GST registration. Thereby, to attaining GST is a good license while trying to start a Sole Proprietorship.

Shop and Establishment Act license - this acts as a proof of existence. Additionally, most businesses dealing with shops and factories issue this license

MSME registration - easily attainable in most of the states in our country if the firm is acceptable under the MSME sector. Obtain Udyog Adhaar Certificate.