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Business Registration - Sole Proprietorship

PACKAGES

Basic

This package includes:

Shops and establishment registration.


Rs. 3899
+18% GST applicable

Standard

This package includes:

Shops and establishment registration.

MSME under Udyog Aadhaar.


Rs. 5899
+18% GST applicable

Premium

This package includes:

Proprietorship registration.

TAN registration.

MSME under Udyog Aadhaar.

Trademark filing. 


Rs. 14899
+18% GST applicable

Proprietorship

A Proprietorship is intended for the Proprietor to conduct business. Proprietorships are suitable for very small businesses in the unorganized sector. Eazy startup offers proprietorship registration from Rs.3899 

A sole proprietorship is an unregistered business entity, owned, operated, and controlled by a single person. In India, the Sole proprietorships are the most popular forms of business setup my most micro and very small businesses operating in the unorganized sector. Proprietorships are very easy to establish and have minimal regulatory compliance requirements to incorporate and operate. However, sole proprietorships have its limitations, restricting corporate status, separate legal entity, independent existence, transferability, perpetual existence, and other features that a limited liability proprietorship would award which are desirable for any business. Therefore, small businesses in the unorganized sector, without the intent to grow, and / or have a limited duration of existence would find the Sole Proprietorship setup suitable. The establishment of a Sole Proprietorship is conducted by tax registrations and similar business registrations that is required for a business to have as per government compliance. Shops and Establishment Registration and GST Registration, for instance, can be obtained in the name of the Proprietor to distinguish that the Proprietor is operating the business as a sole proprietorship. Hence, the Proprietor would be personally liable for liabilities of the Proprietorship as all registrations would be in the name of the Proprietor.

ADVANTAGES

Easy to Start

Since a Proprietorship needs minimal registration, it is one of the easiest forms of businesses to register with the least amount of formalities. However, to acquire a bank account and payment gateway, other registrations like GST and Shops and Establishment Registration may be required making formalization processes more difficult.

Business Name

As an unregistered name in the unorganized sector, a proprietorship may choose to have any name for as long as it does not infringe on a registered trademark. This lack of protection leaves it open for any other person to use the same business name unless a registered trademark has been obtained.

Single Promoter

The only type of business entity that can be registered and operated by one person is a Proprietorship. For other types of entities like company or LLP or partnership firm, two or more promoters are required, whereas to register a sole proprietorship company, only a nominee Director is required.

Lower Taxes

If the Proprietorship earns less than Rs.5 lakhs of income, it is not required to pay any income tax, as proprietorships are taxed as an individual owing the business. This comes at a disadvantage as the Proprietorship may incur tax liability and not enjoy tax deductions as with a company or LLP.

Easy to Close

For legal intents and purposes, the Proprietor and the proprietorship are considered one and the same, therefore there is no formality for winding up or closing a proprietorship. Therefore, in most cases, just the cancellation of obtained tax registrations closes the proprietorship.

Startup Consultation

Our Business Advisors will guide you with best methods for establishing the identity of your proprietorship firm and also to open a bank account depending on the case as there is no particular procedure involved in incorporating Proprietorship.


FAQ'S

Q: What are the requirements to be a proprietor?

A: As there is only one person in a proprietorship firm, only an Indian national who is resident in India can start a proprietorship business. Investment can be done by Non-Indian residents or individuals with Indian origin only with prior sanction of government of India.

Q: Can other people invest in a proprietorship?

A: Proprietorship firm cannot issue shares nor cannot get investments from others, since it is an entity which is possessed, managed and coordinated by one individual only.

Q: Documents required for getting registered for proprietorship

A: Identity and address proof of the proprietor and address proof of office where the registered firm is going to operate. Pan card, Aadhar card and photographs of the proprietor mandatory.

Q: How long does it take to get registered for Proprietorship firm

A: We at Eazy Start-up will help you to complete the registration process within 8 - 10 days.

Q: Annual compliances required for a proprietorship firm

A: Annual tax returns are to be filed with income tax department by proprietorship, whereas there is no requirement for filling annual reports or accounts with the Ministry of corporate affairs.

Q: What is the minimum capital required to start a proprietorship?

A: Proprietorship can start its business with any amount of capital and there in need of showing a proof on how much capital was invested during the registration process.

Q: Can I transfer my business to another person?

A: No, a proprietor cannot transfer his business to other individuals as any other company or firm can do. He can only transfer those assets which are tangible other than government approvals, registrations, etc., by selling them to others.