The word ‘Sole’ which means single and the word ‘Proprietorship’ which means ownership. In other words, the legal business activities which are owned and controlled by an Individual is called “Sole Proprietorship”
It is the simplest way of running a business. Proprietorship firm registration is popular in India with many of the small types of organisations, as the tax compliances involved is minimal.
In this kind of business structure, it is only the sole proprietor liable for the assets and liabilities. In a sole proprietorship business, the owner can either run the business in his own name or under an imaginary name.
Who is the proprietor?
A proprietor is a person who is an owner of a business entity who is actively engaged in the establishment of a business. A Proprietor should be a living person and cannot be a corporate or a Legal entity.
The basic documents of the Proprietor are the basis for obtaining business registration and license. The owner and the entity are not separate, In case of any issues or any liability, the owner of the business is held responsible.
- A proprietorship firm is started by a resident of India
- Choose a business name
- Set a business location to start the business
- No capital amount required
- Only a minimum investment is needed
- NRI cannot start a Proprietorship firm
Top-Class Sole Proprietorship Registration Services
When you choose Aavana for your proprietorship firm registration, you’re sure to get top-class services. Our knowledgeable experts will answer all your questions and make your registration process a feasible one.
Aavana Corporate Solutions being one of the well-known business registration and advisory services provide you with complete assistance and also help you understand the procedure to get a sole proprietorship firm registration done smoothly.
Offering a gamut of registrations, be it private limited,one person company, limited liability partnership or partnership and also various other services assisting you throughout the year is done seamlessly by our experts. Get in touch with our professionals to find out more!
We also offer a FREE consultation!
- Single Ownership -Only one person will be the owner of the business. No other person will be involved as an owner.
- Easy of Formation -The formation of Business is very easy as it requires very few documents.
- Investment of Low Capital - the Only the owner can invest capital.
- Self Management -Each and every task will be conducted by the owner.
- Personal Risk -The whole risk of the entity is liable by the owner.
- Profit & Loss - Full amount of profit or loss will be entitled by the owner.
- No Separate Entity -Owner is not separate from the business activities.
- Uncertain stability -The stability of the Proprietorship is not certain because any time the business might wind up for the reasons of loss or death of the owner.
- Lack of Legal formalities -A Sole proprietorship does not have a separate law to govern it.
- PAN of the Proprietor and Proprietorship are one and the same.
- A Proprietorship cannot raise equity funds from Angel Investors, Venture capital and private equity funds.
- In case of Loans from the Banks the Proprietor needs to pledge his own property.
- Banks do have a restriction on the amount of money that they can lend to Sole Proprietorship business.
Different Ways to register your Sole Proprietorship Registration
There is no such hard and fast rule laid by the government of India to register a sole proprietorship firm. It must be formulated through tax registrations or business registrations in the name of the owner or Proprietor to confirm that he/she is operating the business.
This would make the Proprietor liable for all the liabilities of Proprietorship firm registration. As the owner and sole proprietorship are the same, taxation rules are simple and the income earned by this business is that of the owner and taxes are paid on the profits earned by the sole proprietorship.
Here are a few ways for the registration to be done:
- MSME registration certificate
- GST registration as a proprietorship entity
- Shops & Establishment Registration Act
- Import Export Code
- FSSAI Registration
- Easy to form
- Less expensive
- Sole ownership
- Less Tax compliance
- No restriction for Business Name
- Easy closure
Get your Sole proprietorship firm registration done promptly
Sole Proprietorship firm registration can be done on your own through the portal, but you need to have the right kind of information on matters regarding the documents, how to get the GST done. Instead, seeking the help of our professional experts will save you time and energy. This price at which we get your registration services done is affordable with good quality of work.
Basic documents required for the registration are as follows
Documents required for the proprietor:
- Aadhaar card
- PAN card is mandatory
- Driving Licence / Voter ID / Passport
- Electricity bill / Bank Statement / Phone Bill / Gas Bill of not old than 2 months has to be submitted
- Passport Size Photograph
- Registered office proof of the company stating if the property is rented/ leased,
- Copy of the rental agreement or lease agreement.
- Copy of electricity/water bill (business place)
- In case of own property, copy of sale deed and electricity bill is sufficient
- Copy of no objection certificate from the owner of the property
Proof of registered office
Here’s how we help
When you want to establish a sole proprietorship firm, all you need to do is get in touch with our professional staff who will perfectly guide you through the process. Choose the services you require, be it a proprietorship, or with MSME, or GST
From collecting your documents and applying for a PAN card if you do not own one to applying for GST, we’ve got your needs covered.
We also have the knowledge and expertise to handle all your online proprietorship registration as well.
Trust our dedicated professionals to get your pvt ltd registration done on time. Get in touch with us today and get a FREE consultation!