WHAT IS PROPRIETORSHIP REGISTRATION?
A Sole proprietorship is a business which is owned, managed and controlled by a single person. It is one of the most common form of business in India, utilized by small businesses operating in the unorganized sectors. Proprietorship is recognized by other registrations, such as a service or sales tax registration. It has too many shortcomings, such as unlimited liability of proprietor, and it does not have continuous existence. For these reasons it is considered by small merchants and traders as a business structure.
ADVANTAGES:-
- Minimal Compliance: Sole Proprietorships are only recognized via their government and tax registrations, so the extent of their compliance is limited to the annual filing of their service, professional or sales taxes.
- Easy to Start: It takes 15 days to start if all you need is a Service Tax Registration, but this would stretch to even 45 days if you need Sales Tax Registration. But the process is uncomplicated. PAN card and identity and address proofs are enough to get them done.
- Relatively Inexpensive: A Sole Proprietorship is inexpensive as compared to a One Person Company (OPC) and has minimal compliance requirements. This is why, despite its severe shortcoming (unlimited liability), small merchants and traders opt for it.
DOCUMENTS REQUIRED TO REGISTER SOLE PROPRIETORSHIP FIRM
- PAN Card copy of proprietor
2. Electricity/ Water bill (Business Place)
3. Copy of Aadhaar Card/Voter identity card
FAQ
Who can start a sole proprietor firm?
Sole Proprietor Firm is owned, manage and controlled by the single individual. Any Indian resident can start sole proprietor business by simply getting various government license like Shops & Establishment license, Service Tax, VAT, IEC, PAN, Importer Exporter Code, ESI, Professional Tax, Central Excise Duty, CST Registration, Employee Provident Fund Registration and approach to bank to open current account under business name.
How much do I need to invest start an sole proprietor firm?
For sole proprietor firm, no minimum capital is required to invest unlike in other company formation. Sole Proprietor firm can be start with a very low investment.
For which business/service category, sole proprietor firm can be opted?
Generally, local vendors doing small scale business opt for sole proprietor firm. For example: general provision store, grocer, medical shops, bakery shops, restaurant etc.
Does a sole proprietor firm have continuous existence?
The existence of a sole proprietorship business is dependent on the life of the proprietor and illness, death etc. of the owner brings an end to the business. The continuity of business operation is therefore uncertain.
How long does it take to establish a business with Sole Proprietorship?
It will not take more then a days to start up a business as Sole Proprietorship.
Start Your Own Business – Sole Proprietorship Firm Registration in India
How to Start and Register Sole Proprietorship Business in India
To get your proprietorship firm regsistered click here.
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