Proprietorship Registration

A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship’s are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating. However, after the startup phase, proprietorship’s do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence – which are desirable 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 mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations. For instance, GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.

India Filings is the market leader in company registration services in India, offering a variety of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration , Producer Company Registration and Indian Subsidiary registration. The average time taken to complete a proprietorship registration is 3 – 5 working days, subject to government processing time and client document submission. Get a free consultation for proprietorship registration and business setup in India by scheduling an appointment with an India Filings Advisor.

Compliance

Payment of periodic dues (GST Liability, TDS & TCS payment).

Non-Registrar compliance of periodic returns – (Monthly, quarterly, annual returns- GST, TDS, etc).

Monthly/Quarterly GST Returns.

Quarterly TDS Returns.

Filing of Tax Audit Report.

Assessment of advance tax liability and payment of advance tax periodically

Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)

Regulatory Assessment of business under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act, etc.

Check List

PAN copy of all the Members/Directors/Proprietor/Partner

AADHAR copy of all the Members/Directors/Proprietor/Partner

Passport copy of the Members/Directors in case of NRI

Mobile No. & Mail Id of all the Proprietor/Partner

Two passport size photo of all the Proprietor/Partner

Business Address Proof (Rental Agreement & Electricity Bill)