Proprietorship Registration Online

Apply for sole proprietorship firm registration in India online with BizRegistro.

  • Cost-effective
  • Minimal paperwork
  • low set-up costs
  • Flexible Business Decisions
  • Minimal Compliance
  • Control Over Finances
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Proprietorship Registration

One of the earliest and simplest business structures to establish in India is the sole proprietorship. An enterprise known as a proprietorship is one in which the proprietor is the only person with ownership, management, and control. There are relatively few criteria for compliance, and it is quite simple to start up because the proprietorship and proprietor are equivalent.

A proprietorship is not able to have other partners or shareholders because the proprietor and the business are one and the same. Furthermore, the owner of a sole proprietorship is not protected from limited responsibility by the commercial operations carried out in that capacity. Therefore, small enterprises with no more than five employees are the greatest candidates for this sort of corporate structure.

The sole ownership is a straightforward and effective business form that is perfect for single proprietors, and BizRegistro will help you register one. Your proprietorship can get up and running quickly and easily with our professional advice and simplified approach. With our help, launch your sole proprietorship and realize the full potential of your business concepts.

Essential Licenses & Registrations for Proprietorships

In India, a proprietorship requires a number of licenses and registrations, such as:

  • Obtain an Aadhar card and a Permanent Account Number (PAN) for business identity
  • Enroll in UDYAM to receive government advantages and have your company recognized as a Micro, Small, or Medium Enterprise (MSME).
  • To collect and pay Goods and Services Tax (GST), you must register your business if it exceeds certain levels.
  • To ensure easy financial management, open a separate bank account for your company.
  • To comply with local labor laws, register your business under the Shops and Establishment Act of your state, depending on where it is located.

Advantages of Proprietorship

  • Simple registration:

    Since a sole proprietorship is the same as a proprietorship, there is no formal incorporation or dissolution procedure. For compliance with Indian rules and regulations, the owner of a business may need to secure specific licenses and registrations in order to operate.

  • Reduced compliance:

    Since most proprietorships simply register with government agencies such as GST and Income Tax, there would be less work to be done in terms of registration. However, organizations such as LLPs and companies must register with the Ministry of Corporate Affairs, file a number of statutory returns, and undergo an annual audit by a chartered accountant.

  • Simplicity:

    The owner can run this company with less paperwork and permission needs because it doesn't have shareholders, partners, or directors. Hence, this type of business structure is best suited for very small businesses.

  • Business decision:

    The owner of a proprietorship makes all business choices. No other person's consent or approval is necessary. As a result, an owner is typically able to make judgments about his business matters quickly.

  • Complete control:

    The solo proprietor is the only owner of a sole proprietorship. He or she is in total charge of the company's resources, earnings, expenses, and daily activities.

PAN Card for Proprietorship Firm

A proprietorship is not an independent company. Therefore, there is no process for obtaining a PAN card for a proprietorship. For a proprietorship, the business owner's PAN card is utilized.

Obtaining GST Registration for Proprietorship

BizRegistro will arrange GST registration for a proprietorship as part of the service. The above-mentioned documentation is needed in order to register for GST:

  • The proprietor's Permanent Account Number (PAN)
  • the authorized signatory's digital signature certificate
  • the proprietor's consent to get GST registration
  • A picture of the proprietor and a designated signatory
  • Details of the bank account: an image of a cancelled check that contains the name, bank account number, MICR, IFSC, and branch details of the corporate entity.
  • Declaration / Permission to Appointed Signatory
  • The rent or lease agreement should be under the owner's name for business purposes.
  • If the address on the ownership document (Property Tax Receipt, Municipal khata copy, or copy of Electricity Bill) is incomplete, then additional documents in the name of the owner, such as an Aadhaar Card, Driver's License, Passport, or Voter ID, should also be provided.

Obtaining UDYAM Registration for Proprietorship

Udyam Registration can be obtained online to avail various benefits available for small and medium sized businesses. Once the GST registration is obtained, the BizRegistro team would help obtain UDYAM registration by submitting Aadhaar card, PAN card and GST certificate to Government.

Bank Account for Proprietorship

A proprietorship's bank current account will be opened in the owner's name using his or her PAN. Proof of conducting business will need to be submitted by the business owner. To open a current account in the proprietorship's name rather than a savings account, any two of these documents may be sent:

  1. Certificate of GST Registration
  2. The Shop & Establishment Act license
  3. license is granted by the registering authority, such as the Indian Medical Council, Food and Drug Control Authorities, Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, and Certificate of Practice.
  4. In order to open a bank account, banks may also accept the Importer Exporter Code (IEC) that the DGFT office issues to the private firm as identification.

Obtaining Shops & Establishment Act License for Proprietorship

The procedure for obtaining a Shop and Establishment registration certificate varies from state to state. It can be found both offline and online. Shop and Establishment Act registration can be achieved in two to three weeks in the majority of states.

Timelines for Sole Proprietorship Registration

With BizRegistro, a sole proprietorship can typically be registered in fewer than 15 days in India. However, registration deadlines will differ from instance to instance based on bank and government processing schedules.

Proprietorship Business Activities

Any kind of economic activity that an Indian individual can engage in, across the majority of sectors and industries, can be carried out by a proprietorship. Nonetheless, specific approval is needed for particular activities, such as those in banking, insurance, financial services, lending, defense, and telecommunication. In these situations, it becomes mandatory for a corporation to secure a number of government approvals. Therefore, proprietorship business structures are only effective for small-scale commercial operations.

Compliances for Proprietorship

Some of the regulations that apply to a sole proprietorship are as follows:

  • Income Tax Return Filing:

    A proprietorship's business owner must use form ITR-3 or ITR-4 to file their personal income tax return.

  • Business Income:

    You can only declare business income on income tax forms ITR-3 and ITR-4. Thus, in order to comply with income tax laws, proprietorships must file form ITR-3 or ITR-4.

  • GST Return Filing:

    In accordance with the plan under which the firm is established, a proprietorship that has opted for GST registration is required to file a GST return on a monthly and quarterly basis.

  • TDS Returns:

    Tax has to be withheld at source and TDS returns have to be submitted if the proprietorship employs people or makes purchases of goods or services that exceed a specific level.

In addition to the above, various other compliance requirements maybe applicable to the proprietorship based on industry and location.

Documents Required For Proprietorship

  • PAN Card
  • PAN card of the Proprietor.
  • Aadhaar Card
  • Aadhaar card of the Proprietor.

Proprietorship FAQ's

A proprietorship firm is a form of corporate structure in which the business is fully owned and operated by one person. All of the company's duties and debts are directly owed by the owner. In India, proprietorship firms are a popular option for small businesses and startups due to their ease of setup and operation.

In India, there are primarily four varieties of proprietorship:

  • Ownership by Oneself
  • Individual Firm/ One Person Company (OPC)
  • Licensed Ownership
  • Unregistered Business Ownership

Every kind of proprietorship has benefits and drawbacks, and the needs, objectives, and available resources of the owner will determine which business structure is best.

Proprietorship and firm are often used interchangeably, but there is a subtle difference between the two. Proprietorship refers to a type of business structure where a single individual owns and manages the entire business, while a firm refers to a group of individuals who come together to carry out a business activity. In a firm, the ownership is shared among the partners, and the profits and losses are also shared among them. In contrast, in proprietorship, the proprietor has complete control over the business, and all the profits and losses belong to the proprietor alone.

No, there is no certificate of Incorporation given.

As the sole proprietorship and the proprietor are the same the individual has to just file the Income-tax returns and GST returns filing for the proprietorship firm.

No, there is no minimum requirement to start a sole proprietorship in India.

The sole proprietorships exist as long as the proprietor is alive and is desiring to run the business.

Yes, a sole proprietor is considered to be the same as the sole proprietor.

It generally differs from state to state as in Maharashtra a Shop and Act license is required and for West Bengal, the trade license is required.

Sole proprietorships are owned, run, and controlled by its proprietor. He is in total control of the business.

No, a proprietorship cannot receive a PAN card. The proprietor PAN card and the proprietorship PAN card are identical. A separate PAN card is not required for sole proprietorship businesses.

It is possible to open a proprietorship current account under the business's name. However, the proprietor's PAN card will be used for all official and legal purposes. Therefore, the proprietor will be the ultimate owner and user of the proprietorship bank account.

Yes, provided that it conforms with any additional regulations that may be relevant to your business, you may run a proprietorship out of your home.

Any official document, such as a passport or driver's license, bearing the proprietor's name, photo, and address can be used as evidence of address for proprietorship. A utility or EB bill in the proprietor's name may be supplied in addition to the abovementioned documents.

Depending on the kind of business activity, a sole proprietorship will require different permits and registrations.

No, a proprietorship is not required to register for GST. To conduct a variety of commercial operations, it is advised that proprietorships be registered with the UDYAM and under the GST.

One individual owns, manages, and controls proprietorships, an unregistered business entity in India. Operating in the unorganized sector, micro and tiny companies prefer to register as sole proprietorships.

One can register as a sole proprietorship if they are an Indian citizen and have a current account in the name of their business.

It takes about 8 to 10 days, depending on how the government processes the paperwork.

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