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Sole Proprietorship Firm

Documents & Information Required For Sole Proprietorship Firm Registration

Identity Proof of the Proprietor (Aadhar Card, Election Id, Passport)Pan CardAddress Proof (Electricity Bill or Rent Agreement)
Passport Size PhotographDetails of the no. Employees & ManagersMobile no. & Email Id

Benefits of Sole Proprietorship Firm as Business Form

Easy to Form

Unlike other business structures, starting a sole proprietorship requires less paperwork and time

Cost Effective

Sole proprietorships tend to be affordable models to start and maintain.

Tax Benefits

Sole proprietors claim businesses gains and losses on their own individual tax return instead of separately.

Lesser Compliances

As compared to other business forms, there are less legal compliance with respect to incorporation, operation and taxation.

Direct Control

As Sole Proprietor is the single owner of his business, he/she has complete and direct control over all decision making

Single Promoter & Income Owner

Being promoted by a single individual proprietors keep all the profits of the business to themselves

About Sole Proprietorship Firm

Sole Proprietorship is the most feasible business forms to kick-start your business if you have limited funds and resources. A sole proprietorship firm is a type of unregistered business entity that is owned, managed and controlled by one person known as proprietor.

In India, it is mostly used by MSME businesses operating in the various unorganised sectors. Proprietorship’s do not offer benefits such as limited liability, separate legal entity, independent existence, share transferability, perpetual existence - which are required 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 separate mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through either by tax registrations or other business registrations that a business is required to have as per the rules and regulations. For instance having GST Registration can be obtained in the name of the Proprietor or some other name as desired by the proprietor to establish that the Individual is operating a business as a sole proprietorship firm. Similarly all other registrations like MSME, State Shop & Establishment License also Known as Shopex, Trade License, Gumasta License, E-karmik in different states for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.

  • Standard Package
  • 3499 __
  • – TAN + GST+ MSME + DSC (Class 2 with 2year validity)
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  • Premium Package
  • 4499 __
  • TAN + GST+ MSME + DSC (Class 2 with 2year validity) + Shop and Establishment Registration.
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Frequently Asked Questions
What is the capital required to start a Proprietorship?

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

How much time does it take to establish a Sole Proprietorship firm?

The process of registration of a Sole Proprietorship firm can be completed in 2 to 20 business days, depending upon the type of registration. This takes further time in case there is any delay in government approval.

Will my Proprietorship firm have a Certificate or Registration?
Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.
How to register the name of a Proprietorship?
There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there is no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.
What are the annual compliance requirements for a Proprietorship?
Proprietors will have to file their annual tax return with the Income Tax Department. Other tax filings like GST may be necessary from time to time, based on the business activity performed.
Is audit required for a Proprietorship?
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
Can I later convert my Proprietorship into a Company or LLP?
Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship
Do I need to physically present for the process?

No, you don’t need to be physically present for the process, Vyapar Filings is an online catering platform all you need is an internet connection in your phone/computer and the required documents with you and we can get the job done no matters even if you are present at the remotest location of India