Proprietorship Registration
Assistance in setting up a sole proprietorship and related regulatory registrations.
A sole proprietorship is a business structure owned and managed by an individual. It does not require formal registration, but certain registrations such as GST and other regulatory requirements may be applicable based on the nature of business.
What is a Sole Proprietorship?
A proprietorship is a type of business owned and managed by one person. The entire capital is invested by the sole proprietor. As a result, he alone is entitled to the profits of the business. There is no requirement to register a sole proprietorship as such, and it starts at the will of the proprietor/owner without obtaining any certification.
However, registration with Goods and Services Tax (GST for Proprietorship Firm) and obtaining TAN number for complying with the TDS related provisions of the Income Tax Act is desirable and necessary. Bankers also insist on two KYC documents to open a Current Bank Account in the name of Proprietorship Firm. For these tasks, we provide assistance in obtaining required registrations such as GST and PAN/TAN, as applicable..
Features of Sole Proprietorship
1. Start Immediately
A sole proprietorship can be commenced by the proprietor with applicable registrations as required.
2. Taxation
Income of the proprietorship is taxed in the hands of the proprietor as per applicable slab rates.
3. No Foreign Funding
A proprietorship cannot be funded with foreign money, and it can be owned only by Indians & NRI with some conditions.
4. Easy to Close
The business can be discontinued by surrendering applicable registrations.
Procedure for Starting a Sole Proprietorship
1. Name Selection
First thing is to select a unique name of your proprietorship business, but ensure that the name does not infringe with someone else’s trademark.
2. MSME / Udyam
Registration under MSME (Udyam) may provide access to certain benefits as per government schemes, subject to eligibility.
3. GST Registration
You may not be able to supply goods or services all over India unless GST Registration is obtained. However for same state supply, the limit is 20 Lac.
4. TAN Number Allotment
You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.
Documents Required
1. Copy of PAN
2. Proof of Registered Office if Rented then Rent Agreement or NOC from Owner
3. Latest Address Proof of Proprietor
4. Valid Identity Proof like Aadhaar, Passport, Voter ID etc.
5. Passport Size Photo
6. Cancel Cheque / Bank Statement