How to Register Sole Proprietorship in India?

One of the easiest forms of doing business is to start Sole Proprietorship in India in which the sole person being the owner invests the entire capital in the firm and is alone entitled to an entire profit, but also he bears the loss all by himself.

Proprietorship is not registered under any law or governing act, and one can start his business without obtaining any certificate. However, it is advisable to obtain the registration certificate as applies to get the legal structure. Also, the banks require the legal government certificate to open a current account in the name of the business. Fees applicable on Sole Proprietorship registration depend upon kind of registration the business takes along with professional fees that also varies.

Important features that make Sole Proprietorship most preferred and unique form of business structure:

• Proprietorship can be registered instantly without much wastage of time since there is no mandatory requirement to obtain any certificate.
• The income of the firm can be merged with that of Proprietor. Therefore, necessary exemptions and deduction can be availed provided it assures substantial tax benefits
• Foreign direct investment is not permissible in Proprietorship.
• Unlike other legal structure, it can be easily closed if Proprietorship wants to, by simply surrendering all the documents and licenses.

Proprietorship can be registered by obtaining any of these licenses which will be sufficient to provide it legal existence:

• GST Registration Certificate
• MSME Registration Certificate
• Import-Export Code
• Shop & Establishment Registration Certificate

Following is the list of basic documents that are needed irrespective of kind of certificate applied for:

• Self-attested copy of PAN and Aadhar of Proprietor
• Passport size photograph
• Address proof of applicant such as Bank statement/electricity bill/mobile bill/gas bill
• Identity proof such as passport/DL/voter id of sole owner
• Rent agreement in case of rented premise or registry if the premise is owned as supporting documents for registered address proof

Sole Proprietorship has several advantages that make it preferred the choice of business entity:

• It is easy to start since there is no compulsion to obtain any legal certificate that saves a huge amount of money and time
• Since no registration is required, Proprietorship involves no additional compliances that save its time and cost
• Since the Proprietor and firm are the same as they share the common PAN and thus Income Tax Return in Form ITR-3 must be filed annually for the firm
• The owner being the sole owner is responsible for taking every decision in his firm

Since the Sole Proprietorship being the only legal structure which can be started with no minimum cost, one can start his business and start selling his product to customer and issue invoices for the money received. We are available to assist in starting Sole Proprietorship along with its compliance in all over India. Contact us to get a sole proprietorship registration certificate by paying minimum professional fees.