Easily Register a Proprietorship

Proprietorship is an alias for the Proprietor or an unregistered business entity ideal for very small businesses in the unorganised sector.

About Proprietorship

Proprietorship is a business entity it is also known as a sole trader.  A sole proprietorship can best be summed up by the phrase, "You are the business”.  That is run by natural person with own funds, skill, knowledge. In this type of entity no more legal compliance required. It is not a company, simply a firm. Sole Proprietorships allow persons to report business income and expenses on their individual tax returns. Proprietorship is not required to be registered. Proprietorship is small business in organization sector. Sole proprietorships are attractive to small investors because they are relatively easy to start up. Also, the owner is entitled to all the profit that the sole proprietorship collects. On the other hand, sole proprietorships can be risky because there is no separation between the owner and the business.

In comparisons of other business entities, the proprietorship can work in multiple objects and there are no extra compliances. In India there is no such compulsion on the registration of the proprietorship firm with the department of the Government like other entities have to. Start In India advice to the proprietor to go for the registration of the firm under Micro, Small and Medium Enterprises (MSME) in Udyog Aaadhar Scheme for benefits granted by the State Government from time to time to the enterprises for their growth. This registration also helps the firm to open the Bank Account in the name of the firm, get other department registration like Sales tax and Service Tax.

Process to Register Proprietorship

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    CHOOSE A SERVICE YOU REQUIRE

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    FILL THE ENQUIRY FORM

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    OUR EXECUTIVES WILL CONTACT YOU

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    PROVIDE US WITH THE REQUIRED DOCUMENTS

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Advantages of a Proprietorship

Formation

A Proprietorship is one of the most common forms of business in India. It requires less formation formalities. In Proprietorship very small fee is required for completing the paperwork to get the registration completed.

Easy start business

A Proprietorship business needs no registration. Therefore, it is one of the easiest to start with no formalities. Only a bank account is required.

Distribution of profit

In a proprietorship no required to split profit with other owner. Owner can reinvest the many back into the business or use it for personal reasons.

Taxation

The owner of the Proprietorship is not required to separate tax return income made from the business is counted as personal income and owner pay tax according individual tax rates.

Lower cost

For start a proprietorship overall cost is very low. No need more amounts to spend and business will run in proper way.

Features of Proprietorship

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Owner must be a natural person.

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Minimum legal compliance.

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Registration is Optional.

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Own fund, skill, knowledge is required.

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Tax filling is required.

Disadvantages of a Proprietorship

Unlimited personal liability for debts, loss other business liability.

Capacity to raise capital is limited.

The business life is limited.

Investors won’t usually invest in sole proprietorships.

All the responsibility for making day-to-day business decisions is at owner.

Owner taxed as a single person.

FREQUENTLY ASKED QUESTIONS (FAQS)

A sole proprietorship is a simple type of business structure that is owned and operated by the same person. It does not involve many of the complex filing requirements associated with other types of business structures such as corporations. Sole proprietorships allow persons to report business income and expenses on their individual tax returns. Also, the owner is entitled to all the profit that the sole proprietorship collects. On the other hand, sole proprietorships can be risky because there is no separation between the owner and the business. 

In other words, the owner remains personally liable for any losses or debts that the sole proprietorship incurs. They can also be held legally responsible for violations committed by the business or its employees

Sole Proprietorship Firm has following advantages :-
  • A. Less Costing:-
    If we talk about the service based firm then it’s can be easily start with less than 5000 Rupees through service tax registration.
    If we talk about the product based firm then its depend on the type of tax registration or license as VAT/CST, Shop Act Licenses or MSME Registration.
  • B. Lower Compliance:-
    You have to just file the income tax return as individual at the end of year. You have to maintain basic invoices of income and expenses of the firm.
  • C. Lower Income Tax:-
    You have pay income tax to the government when your total real income is more than limit According to income tax. So it’s give you tax advantages on slab basis.
A sole proprietorship differs from other forms of business in several ways. The chief ways a sole proprietorship is different include:
  • Sole proprietorships are the least complex and cheapest form of doing business.
  • Sole proprietorships require no formal paperwork to set up and don't need to be registered with the state.
  • Sole proprietorships are treated as simple income for tax purposes, and do not need to have separate taxes prepared

No, proprietorship registration is not required. But registration is required for getting the bank account open in the name of firm for your Business transition.

For the registration of proprietorship in MSME following documentary is required:-
  • PAN Card of Proprietor
  • Address Proof Of Proprietor
  • Bank Account Statement Of Proprietor
  • 2 Passport size photos
  • Aadhar Card is Must.
Until and unless you have valid registration in the name of proprietorship firm, no bank wills going to open account in the name of the firm. A Proprietorship can go for registration under MSME Udyog Aadhaar registration and after then you can open your bank account in the name of proprietorship firm.
Proprietorship Firm Can opt for following registration on the basis of the activities of the firm:
  1. MSME Udyog Aadhar
  2. VAT/CST/Sales Tax Registration – For Trading Based Firm.
  3. Service Tax Registration – For Service Provider.
Service tax Registration at formation of the firm is not mandatory it’s optional on the part of the Firm. It’s become mandatory if the total income/turnover of the firm crossed Rs. 10 Laces in a year.
NO, there is not provided any mechanism by government for proprietorship firm in compulsory format but proprietor can registered proprietorship firm in MSME/SSI under Udyog Aadhar.
No, Only an Indian resident person can establish proprietorship firm.

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SIMPLE & TRANSPARENT PRICING

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Basic
Rs.2100/-
all inclusive fees

Proprietorship registration with TAN registration, MSME under Udyog Aadhaar .

Standard
Rs.6500/-
all inclusive fees

Proprietorship registration with TAN registration, MSME under Udyog Aadhaar, service tax registration .

Premium
Rs.13000/-
all inclusive fees

Proprietorship registration with TAN registration, MSME under Udyog Aadhaar , service tax and trademark registration.

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