Set up a sole proprietorship Firm

  • Easily register Sole proprietorship firm with our expert team and proper support
  • Paperless Complete documentation and filing support done
  • During business registration End-to-end support for making company and compliance<

10K+ Proprietorship Firms Registered Since 2020

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Register Proprietorship Firm Online through Compliance Gurukul

You can easily complete proprietorship firm registration online through Compliance Gurukul. For a sole proprietorship registration, only the PAN & Aadhaar card of the business owner is required. We can help you obtain the following registrations in less than 15 days:

  • GST Registration
  • Zero-Balance Business Current Account with Compliance Gurukul Software

Once, you have registered for the proprietorship firm registration online on Compliance Gurukul, please follow the steps below and upload the following documents by logging into Compliance Gurukul Software.

  • Step 1: Login to LEDGERS using the email address for payment.
  • Step 2: Go to Services Tab & Select Proprietorship Engagement
  • Step 3: Upload your PAN & Aadhar Card Copy
  • Step 4: An Compliance Gurukul Registration Expert will file the registration application with GST Department and Bank for Current Account.
  • Step 5: Access to Compliance Gurukul Software is for GST invoicing, GST filing and other services.

Proprietorship Registration

Sole proprietorship is one of the oldest and easiest Business Structure to start in India. A proprietorship is a type of business that is owned, managed, and controlled by one person - who is the proprietor. As the proprietorship and proprietor are one and the same, it is very easy to start and there are very minimal compliance requirements.

As the proprietor and the business are one and the same, a proprietorship cannot have other partners or shareholders. Further, there is no limited liability protection for the proprietor from the business activities conducted in the sole proprietorship. Hence, this type of business entity is best suited for every small businesses with no more than 5 employees.

Compliance Gurukul can assist you to register proprietorship firm online, a simple and efficient business structure that is ideal for solo entrepreneurs. With our expert guidance and streamlined process, you can start your proprietorship firm registration online quickly and hassle-free. Start your Sole Proprietorship registration online with us and unlock the potential of your business ideas.

Sole Proprietorship Registration in India

Sole Proprietorship registration in India follows a unique approach, as there isn't a dedicated government-established registration process for this business structure. Instead, a proprietorship firm registration online gains recognition through tax registrations mandated by relevant laws and regulations. One pivotal tax registration is the GST (Goods and Services Tax) Registration, which must be secured under the proprietor's name to formalize the business's proprietorship status. This sole proprietorship registration online signifies that the proprietor is conducting business within the framework of a proprietorship. Compliance Gurukul helps you to register proprietorship firm online easily and effortlessly.

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Advantages of Register a Sole Proprietorship Online

Below are the main advantages of sole proprietorship registration in India:

Easy to registration

Sole proprietorship registration does not have any formal incorporation or dissolution process - as its the same as the Proprietor. However, to operate a business, the proprietor may have to obtain certain registrations and licenses to be compliant with the laws and regulations of India.

Minimal compliance

When compared to other business entities, establishing a sole proprietorship is much easier. It requires very little paperwork from the government end and can be set up easily. Post-registration compliance is also much simpler when compared to other business entities.

Simplicity

As there are no partners, shareholders, or directors, the proprietor can easily operate this business with minimal documents and consent requirements. Hence, this type of business structure is best suited for very small businesses.

Business decision

In a proprietorship, the business owner takes all business decisions. There is no consent or approval required from any other person. Hence, a proprietor can normally take quick decisions regarding his business affairs.

Better Tax Benefits

The income generated by the firm directly passes through a single layer of income tax. In some cases, it is also eligible for up to a 20% tax deduction. These deductions can help the owners save a lot of money.

Complete control

In a sole proprietorship, the individual has better opportunities to directly interact with their clients.As sole proprietorship is owned only by the proprietor. He/she has complete control over the assets, revenue, expenses and all business operations.

Checklist for Sole Firm Proprietorship Registration in India

  • Choose a perfect company name for your sole proprietorship business
  • Get a Permanent Account Number (PAN) and an Aadhaar card for your business identification.
  • Open a separate bank account for your business to manage finances smoothly.
  • Register under UDYAM, which recognizes your business as a Micro, Small, or Medium Enterprise (MSME) and offers government benefits
  • Procure required license including FSSAI license or shop and establishment Act license
  • Based on the business requirement you can register for ESIC or EPFO
  • Obtain all the required certification under Shop and Establishment Act of 1947 ( if applicable).

Eligibility Criteria for Sole Firm Proprietorship Registration

  • The applicant should be above 18 years
  • The applicant should be an Indian Citizen
  • They should have the legal capacity to enter into a contract
  • The proprietor should not have any legal disabilities
  • Applicant should not be declared bankrupt or convicted for felony previously
  • The purpose of the business should be clearly outlined while starting a sole proprietorship
  • The business should be a lawful activity and should prevent selling illegal goods and services
  • The business should have a unique name that was not registered previously.

Document requirement for Sole Firm Proprietorship Registration

  • Aadhaar card, Permanent Account Number (PAN) card or any other identity proof of the sole proprietor
  • Digital Signature Certificate of the Authorized Signatory
  • Photograph of Proprietor and Authorized Signatory
  • Bank Account Details: A scanned copy of a cancelled cheque with the business entity's name, bank account number, MICR, IFSC, and branch information.
  • Declaration / Authorization to Authorized Signatory
  • Address proof of the business, Rental agreement of the registered office address, NOC from the landlord
  • Consent by Proprietor for obtaining GST Registration
  • Additional documents such as Aadhaar Card, Driving Licence, Passport, or Voter ID in the name of the Owner with the complete address of the premises should also be provided.
  • if the address on the ownership (self owned property) document (Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill) is incomplete.

Timelines

A sole proprietorship firm registration can normally be done in India through Compliance Gurukul in max 2 weeks. However, the timelines for registration will vary from case to case, depending on the government and bank processing timelines.

Proprietorship FAQ's

A proprietorship firm is a type of business structure where a single individual owns and manages the entire business. The proprietor is personally liable for all the debts and obligations of the firm. Proprietorship firms are easy to set up and operate, making them a popular choice for small businesses and startups in India.

There are mainly four types of proprietorship in India:
Sole Proprietorship
One Person Company (OPC)
Registered Proprietorship
Unregistered Proprietorship
Each type of proprietorship has its advantages and disadvantages, and the choice of business structure depends on the proprietor's needs, goals, and resources.

The cost of registering a sole proprietorship starts from ₹699, covering the basic registration process. Additional fees may apply based on location, legal requirements, and any extra services selected. For a detailed cost estimate tailored to your needs, please consult with our registration experts.

GST registration is mandatory for sole proprietorships if annual turnover exceeds ₹20 lakh (₹10 lakh for certain states) or if the business engages in interstate transactions.

Typically, registration can take 9-10 business days. At Vakilsearch, we aim to complete the process within 2 Weeks.

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.

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