Sole Proprietorship Firm in India

A sole proprietorship firm is ideal for those, who want to start a business with the lowest capital and it can be started with a single natural person. It has a very short registration procedure because it does not have any special Act or law.

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OVERVIEW

Register a Sole Proprietorship Firm

A sole proprietorship firm is ideal for those, who want to start a business with the lowest capital and it can be started with a single natural person. It has a very short registration procedure because it does not have any special Act or law.
Proprietorship firm consists only single person as to its owner and it is very small in nature and with fewer legalities. Similarly, Capital Requirements also have no criteria to start the business as it is not a legal entity. Proprietorship firm was also known as its full name “SOLE PROPRIETORSHIP FIRM”.
When one wants to start out-up small businesses, varying from establishing local studios, shops, etc, where one person invests within the sort of capital and avails profit and loss. This kinds of business require a very simple process with minimal legal compliance and formation costs. This follows the easy registration process, under various laws, such as Micro, Small and Medium Enterprises (MSME), Tax Laws, this also includes, different acts, like Shop Act, Labor Act.
Being registered under a ''Proprietorship firm'', does not require any specific legal certificate, which enables a small businessman to easily afford the expenditure. If you are looking for a new venture then this Proprietorship firm is the best option with small capital in a short time frame.

Registration of Company is Simple with Vakilkaro

VAKIL KARO legal experts help to register the proprietorship firm and its time to time compliance. VAKILKARO has the legal expertise in other Registrations, Legal Compliance, PAN card &TAN card of the firms or company, ESI & EPF of firms or companies as well as like OPC, private limited company, limited liability partnerships.

BENEFITS

Advantages of Proprietorship Firm

Sole Proprietorship firm has no legal existence, therefore Individual Income tax slab rates are applicable on the proprietorship firm as ITR filed on the Proprietor’s PAN Card basis.

Except Regular GST, Sole Proprietorship firm has no need to file any monthly Compliances.

As Compared to other business registrations like private limited company, Sole Proprietorship is less expensive.

Sole Proprietorship firm can easily be converted in to One Person Company, Private Limited Company, Limited Liability Partnership etc.

Sole Proprietorship firm has less Compliances unlike Private Limited Company or Limited Liability Partnership etc.

REQUIRED DOCUMENTS

Documents required to register a Private Limited Company

PAN Card

PAN CARD of proprietor is mandatorily required

Proof of Identity

Any proof of identity like Aadhaar Card/ voter id card/driving license of proprietor is mandatory required

Firm Trade Name

The client has to be provided at least one Trade name.

Photo/Mobile Numbers/ Email IDs/ Bank Statements

Proprietor must have their photos, mobile number, valid emails.

Office Address Proof

The client has to provide Office Address proof like Rent Agreement/Property papers with latest electricity bill.

*In case of NRI or Foreign National, documents of director (s) must be notarized.

process

Process to Register Sole Proprietorship Firm

Collection of Documents (1 Day)

  • Client has to provide all specified complete documents, so that the work will not stop in middle.

Confirmation of Payment (1 Day)

  • After completion of all the documents, the all fee should be completed with.

Apply to Authority (1-2 Days)

  • Complete File has to be submitted with appropriate authority. It is totally online process.

Congratulation!

  • Task Done! And Certificate and related documents sent on your email.
COMPARE RELATED SERVICES

Compare different business structures to choose the right entity type

  • Registration Required
  • Number of members
  • Legal Entity
  • Liability Protection
  • Statutory Audit
  • Ownership Transferability
  • Uninterrupted Existence
  • Foreign Participation
  • Tax Rates
  • Statutory Compliances
  • Private Limited Company
  • 2 – 200
  • Yes
  • Limited Liability
  • Mandatory
  • Yes
  • Yes
  • Allowed
  • Moderate
  • High
  • get started
  • OPC
  • Only 1 Member
  • Yes
  • Limited Liability
  • Mandatory
  • No
  • Yes
  • Not Allowed
  • Moderate
  • Moderate
  • get started
  • LLP
  • 2 – Unlimited
  • Yes
  • Limited Liability
  • Dependent
  • Yes
  • Yes
  • Allowed
  • High
  • Moderate
  • get started
  • Partnership Firm
  • 2 – 50
  • No
  • Unlimited
  • Not mandatory
  • No
  • No
  • Not Allowed
  • High
  • Low
  • get started
  • Proprietorship Firm
  • Only One
  • No
  • Unlimited
  • Not mandatory
  • No
  • No
  • Not Allowed
  • Low
  • Low
  • get started
FREQUENTLY ASKED QUESTIONS

Explore Sole Proprietorship Firm Registration

Can a Company Start Sole Proprietorship Firm?

Sole Proprietorship firm can only be Started by a “Natural Persons” like Ram, Shyam etc. and an Artificial like a Company can not start the Sole Proprietorship firms, hence Sole Proprietorship firm can only be registered by the natural Person.

Is it Mandatory to open a Current Account of Sole Proprietorship Firm?

All Business has its own Separate Current Account, no any business can be operated by saving accounts, hence sole proprietorship firm should also be operated by the separate current bank account to maintain its daily routine transaction and good keeping of business records.
VAKIL KARO also supports to opening a bank account a free of cost.

How Long is the Sole proprietorship firm Valid For?

The Firm’s life is unlimited until you surrender its certificate. There are some renewal requirement of licenses like FSSAI, SHOP ACT etc.

Can a Sole Proprietorship be converted into Private Limited Company?

Yes, any time it can be converted in to private limited or one person company by the legal provisions.

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