Sole Proprietorship Firm Registration

A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship’s are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating. However, after the startup phase, proprietorship’s do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence – which are desirable features for any business. Therefore, proprietorship registration is suited only for unorganised, small businesses that will remain small and/or have a limited period of existence.

There is no mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations. For instance, VAT or Service Tax or GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.

IndiaFilings is the market leader in company registration services in India, offering a variety of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration , Producer Company Registration and Indian Subsidiary registration. The average time taken to complete a proprietorship registration is 3 – 5 working days, subject to government processing time and client document submission. Get a free consultation for proprietorship registration and business setup in India by scheduling an appointment with an IndiaFilings Advisor.

Key Features of Proprietorship Firm

  • 1 Person Required as Single Entrepreneur.
  • Single Owner of the Business.
  • Easy to Start and Easy to Close.
  • Complete Control.
  • Lower Cost of Formation and Compliance.

Disadvantages of Proprietorship Firm

  • Lack of Resources.
  • Unlimited Liability.
  • Lack of Credibility.
  • Can not raise funds easily.
  • Can not add Partners.
Documents Required for Sole Proprietorship Firm :
#1 Pan Card Copy of the Proprietor.
#2 Adhar Card Copy of the Proprietor.
Alternative on Aadhar Card : Voter Id | Passport | Driving License.
#3 Firm Address Proof : Electricity Bills copy or gas bill or phone bill etc. (No issues if its on other name)
For the GST Additional :
#4 Passport Size Photograph
#5 Personal Bank Account Cancel Cheque or Bank Statement or Passbook Front Page anyone.

Legal Entity Proof for the Sole Proprietorship Firm in India

Option 1 :  MSME Registration Certificate + Chartered Accountant Business Certification. ( It’s accept by only some co operative and small banks. Confirm with your bank for the same).

Option 2 :  GST Registration which is required in below anyone conditions –
#1 deal inter state sales or services.
#2 Ecommerce or internet based business.
#3 Trader or Retailer or Mfg or Aggregator
#4 Within state have more than 20 lakh rupees turnover.

*Turnover limit of the GST is applicable only in within state.

Startup Friendly Pricing and Package

  • Option 1 GST Registration as Firm @ 2500/- INR (All Inclusive)
    • GST Registration Certification as a Firm with GSTIN
    • GST Invoice Formats with the HSN Code rate list.
    • GST official government software
    • Free Premium 10+ Legal Agreements Templates i.e Website terms | employment contract etc.
    • Free Premium Invoice Templates i.e to keep records of invoice.
  • Option 2 Basic Certification@  1500/- INR (All Inclusive)     
    • MSME Registration Certificate
    • Chartered Accountant Business Certificate
    • Free Premium 10+ Legal Agreements Templates i.e Website terms | employment contract etc.
    • Free Premium Invoice Templates i.e to keep records of invoice.
Timeline for the Sole Proprietorship Firm Registration :

#1 MSME + CA Certification | 2-6 days avg from working on the assignment.

#2 GST Registration | avg 7 days from working on the assignment.

FAQ Series on the Sole Proprietorship Firm ?
a) Does its required the commerical proeprty or office for the Registration ?
No, you can register on your residential property also, wheather its a rented or own property. you need just utility bills copy with permission from your landlord or owner of the premise.
b) NOC is required in rental or own property case ?
If the bill copy is on the another person name then yes No Objection Certificate is required & formated is shared by us on later stage.c) Can i keep any name of the Firm ?
Yes, you can keep any name of the Firm. its not realted to the private limited company or llp or opc etc. you have to keep name without any extension. for ex – myonlineca technologies.d) Can i register the firm on my family member name ?
Yes, you can register your firm on your family member name if you have any objection. its required the same docs which mentioned above.
How to Get Start Register a Sole Proprietorship Firm
Step 1 : Just Place a Request with your Requirements on below Form & fill up necessary details & Make the Payment.
Step 2 : You will get the proposal on your Email in seconds.
Step 3 : Reply back to us on email with your scanned copy or images documents and information.
Step 4 : Your Work is Done and Get the Certification as per our Email proposal.
Start Registration