A Summary of Online Sole Proprietorship Registration in India

Single Person Firm Registration is also known as Sole Proprietorship Firm Registration. There are no requirements or registrations needed to register a proprietorship business in India. On paper, there is no such thing as proprietorship registration. Documents Required for the Registration of a Sole Proprietorship in India.

Use Complynest to quickly and easily register a single proprietorship online.

A firm is referred to as a sole proprietorship if it is run and owned by only one individual. This kind of company structure is one of the most popular ones to launch in the unsystematic sector, especially among small dealers and merchants, because it may be incorporated in fifteen days. A proprietorship company business is typically exempt from registration requirements since it may be identified through other government business-related registrations, such as GST registrations. Additionally, because of its unlimited responsibility, it is not eternally existing.

There is no legal distinction made between the business and the owner in a single proprietorship business structure. A sole proprietorship is not a legal entity, just to be clear. The business owner is solely responsible for paying off all of the company's obligations and loans. A preferred and well-liked company structure in India is the sole proprietorship registration. Starting it is straightforward and inexpensive.

In India, establishing a single proprietorship is the easiest and most practical course of action. The business is owned and managed by a single person who also serves as the proposed entity's owner, director, member, and shareholder. It is not regarded as a company or a corporation. Shops like grocery stores, pharmacies, saloons, and so on are some typical instances of proprietorship businesses.

A person who wishes to create their own firm can organise it as a sole proprietorship, manage it, and exercise all of its legal rights and obligations. According to the Revenue Tax Act, the sole proprietorship's loss or profit is seen as the owner's loss or profit, and the income earned by the sole proprietorship is regarded as the owner's income. The majority of company owners have formed their companies as sole proprietorships because they view them as the most desirable type of business structure.

With the aid of a professional like us, you may register a sole proprietorship firm entirely online.However, there are several fundamental conditions that must be met in order to register as a sole proprietorship, such as creating a bank account in the entity's name.

Documents required for Proprietorship Firm Registration in India

Checklist requirements for conversion of a Private Limited Company to a Public Limited Company
The scanned copy of the aadhar card of the proposed proprietor of the sole proprietorship accounting. Aadhar card is necessary to register any business structure in India
In addition to the Aadhar card, the PAN card of the proposed proprietor is also a mandatory document for a proprietorship business registration in India.
With a PAN card and Aadhar card, the proprietor of the business entity is liable to open a bank account in the name of his sole proprietorship firm.
Along with the above-mentioned documents, the individual would require identity proof and address proof for the registration process.
Documents needed for GST registration are also required to open a current bank account in the name of the company.
A proprietor of the sole tradership firm can run his business activities at any rented place or owner place. The individual has to submit some of the proof of his registered office, documents such as:
If the registered office is owned property, any utility bill is required such as electricity bill, water bill, gas bill, etc. with the No Objection Certificate. The bill submitted should not be older than two months
If the registered office is rented property, then a lease/ rent agreement of the rented property along with the NOC from the owner is required.

Registration Procedure of Sole Proprietorship Firmin India

A proposed person can choose any of the below mentioned options for the sole proprietorship registration online in India process:

SME Registration process
GST registration process
Registration as per the Shop and Establishment Act under the rules and regulations of that particular state

SME Registration Process for Sole Proprietorship Firm

As per the provisions of the MSME Act, any person requires registering as an SME (small and medium enterprise) to start a business. To complete setting up a sole proprietorship, the individual has to submit an online application. However, this is compulsory but is good for the company, as it can be used during the need of loan requirement at a low-interest rate. The government has also introduced many schemes for the improvisation of SMEs registered as per the MSME act.

Shop And Establishment Registration

To register in the Shop and Establishment registration process, the person must own a shop and it is issued by the municipal parties depending on the number of workers or employees in the firm.

GST Registration

Getting a GST registration is mandatory to run any type of business activities in India. GST number is necessary even if the individual is doing online business. GST registration takes about 5 working days and it requires the following documents:

PAN Card and Aadhar Card of the proprietor
Passport size photographs of the proprietor
Office proof
Bank Statement copy with the bank account number, branch address and IFSC code

Post Compliances

Should file annual Income Tax returns within the due date.
Should file GST if the business is registered under GST registration
If the sole trader firm is liable for TAX audits, then the proprietor should deduct TDS (tax deducted at source) from workers income and should file TDS returns

TYPE	PARTNERSHIP	PROPRIETORSHIP	LLP	PVT	OPC
Members	2-20	Maximum 1	2- Unlimited	2-200	1
Legal Status of Entity	Not Considered as separate Legal entity	Not Considered as separate Legal entity	Considered as separate Legal entity	Considered as separate Legal entity	Considered as separate Legal entity
Members Liability	Unlimited Liability	Unlimited Liability	Liability of its members is limited	Limited to the extent of share capital	Limited to the extent of share capital
Registration	Optional/ Can be Registered under partnership Act 1932	Not Compulsory	Registered Under MCA	Registered Under MCA	Registered Under MCA and Companies Act 2013
Transferability Option	Not Allowed	Not Allowed	Can Be Transferred	Can Be Transferred	Allowed to only one person
Taxation	30% of Company Profit	As in Individual	30% of Profit Plus CESS and Surcharges applicable	30% of Profit Plus CESS and Surcharges applicable	30% of Profit Plus CESS and Surcharges applicable
Annual Filings	Income Tax Returns with the Registrar of companies	Income Tax Returns with the Registrar of companies	Filed with the registrar of the company	Filed with the registrar of the company	Filed with the registrar of the company
	Link to Partnership Page	Link to Proprietorship Page	Link to LLP Page	Link to Pvt. Ltd. Page	Link to OPCPage

Frequently Asked Questions

Who can start a sole proprietorship business structure?

Any Individual who is a resident of India can form a sole proprietorship. All the person needs is to open a current bank account in the name of your business. The procedure of Registration depends on the type of a business you are going to start up.

How long will it take to form a proprietorship?

Usually, it takes about 15 days, not more than that. This is one of the main reasons for the popularity of proprietorship business form among traders and merchants.

What kind of business can be sole proprietorships?

Businesses such as grocery stores, small traders, manufacturing businesses and fast food vendors are some of the common sole proprietorships. Even though, bigger businesses can also be sole proprietorship but it is not recommendable as it holds unlimited liability and single had business.

What sort of papers does a person need to open a current account in the proprietorship name?

Copy of Shops & Establishment Act Registrations along with PAN card, identity proofs, proof of your company's existence and address.

Are any of these registrations can be done online?

Registrations such as Service Tax and any of the registrations regulated by the central government are done online. Nevertheless, state-government registrations might not be usable online.

What are the benefits of a sole proprietorship firm?

Least complex and the cheapest form of the business form are some of the main advantages of this kind of firm.

What are the other requirements needed along with a current bank account?

Along with a current bank account, you need GST Registration if your business turnover exceeds the limit as dictated by the government.

Can I convert Sole Proprietorship Firm business to a Private Limited Company?

Yes, you can convert the Sole Proprietorship Firm to a Private Limited Company anytime you want as per the rules and regulations of the government.

What are the requirements needed to start a Sole Proprietorship Firm?

Name and a place for your business are only two basic requirements to start a Sole Proprietorship Firm.

Sole Proprietorship

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A Summary of Online Sole Proprietorship Registration in India

Documents required for Proprietorship Firm Registration in India

Registration Procedure of Sole Proprietorship Firmin India

Frequently Asked Questions