A sole proprietorship is a common type of business in India and other countries. It’s like a one-person show where one individual owns, manages, and runs the whole business. In India, these businesses are the most straightforward and oldest way of operating small businesses in less organized sectors.
The best thing about a proprietorship business is that you don’t need to register it to get started. It’s easy, and there are very few formalities. However, if you want to open a bank account or set up a payment gateway in your business’s name, you’ll need to get MSME (Udyog Aadhaar) or GST registration. Because there’s no separate legal entity, your personal PAN (Permanent Account Number) is used for all registrations and following the rules.
Note:
We recommend you send soft copies of the documents. Also, complete the survey that our startup advisors will give you. We'll check the information and legal papers you send. If you have any questions, feel free to reach out to us.
Your proof of address should be recent, not older than two months.
1. Proprietor’s Pan card and Aadhaar card.
2. Latest utility bill of registered office address.
3. Signed consent letter from owner for using premises as registered office.
4. In case of rented space- rent agreement.
5. In case of ownership- purchase agreement or property tax receipt.
Starting your own proprietorship firm doesn't need a lot of legal stuff It's pretty easy to set up with just a little work, but you can get a lot of rewards from it.
As a business owner, you can choose any name for your sole proprietorship since it doesn't need to be officially registered Just make sure the name you pick doesn't violate any existing trademarks.
If you have a sole proprietorship, it means the government knows about your business and you've completed the necessary tax registrations The only things you really have to do are file GST returns every year and submit your annual income tax and professional tax returns.
If you own a sole proprietorship, you don't need to file a separate business tax return Instead, you include your business information and earnings in your personal tax return Your business won't be taxed like a big corporation; instead, it will be taxed based on your personal income tax rates This means you can take advantage of the same tax deductions available to individual taxpayers.
If you run your own business as a sole proprietor, you can make decisions quickly without waiting for approval from others You have the freedom to carry out your ideas and choices independently in all aspects of your business.
If you're a sole trader, you're the only one who knows all the secrets that make your business successful This means you can keep everything about your business private.
In a sole proprietorship, the business and the owner are seen as one, not separate This means there's no specific process to close the business, unlike other types of businesses The winding up of the business is very easy and the only requirement is cancellation of tax registrations and licenses obtained by the proprietorship business.
The money made from a sole proprietorship business belongs only to the person who owns it The profits and losses of the business are not shared with anyone else.
From our packages, you can select your desired plan and fill an inquiry form for the same can select your desired plan and fill an inquiry form for the same
Once we collect your documents, we will verify them for the proprietorship registration
After verifying your documents we will be further submitting them to the concerned authority for consent
You can start your business operations immediately after you receive the required approval
To be a proprietor, an individual must be an Indian citizen and a resident of India A corporate legal entity cannot be a proprietor.
You can use any amount of minimum capital to start a proprietorship since there is no fixed limit to the minimum capital required to start a proprietorship.
An NRI or Person of Indian Origin can invest in proprietorship firm provided the amount invested are not repatriated outside India.
If you have a proprietorship, you don't have to do a mandatory audit every year However, depending on your business income and other factors, you might need to do a tax audit.
Yes, a proprietorship can be converted into a company or an LLP by following certain procedures. But converting a proprietorship business into a company or an LLP involves a lengthy procedure that can be expensive and time-consuming So it is always advisable for an entrepreneur to consider the options of starting an LLP or a company rather than a proprietorship.
