Domiyance Finance Consultancy LLP

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Proprietorship Registration
@3499/- (Limited Offer)

Proprietorship registration in India is quite easy and simple as there is no need to incorporate it under any specified law. We offer free consultation, GST Registration, and Udyam Enrolment (MSME) in our packages to set up a proprietorship firm. Talk to our start-up experts today.

Proprietorship Business: Overview

Sole proprietorship is one of the oldest and easiest Business Structure to start in India. A proprietorship is a type of business that is owned, managed, and controlled by one person – who is the proprietor. As the proprietorship and proprietor are one and the same, it is very easy to start and there are very minimal compliance requirements.

As the proprietor and the business are one and the same, a proprietorship cannot have other partners or shareholders. Further, there is no limited liability protection for the proprietor from the business activities conducted in the sole proprietorship. Hence, this type of business entity is best suited for every small businesses with no more than 5 employees. The proprietor is 100% liable towards the business, and shall be required to pay off the liability from his personal pocket. The existence of a proprietorship cannot extend beyond the life of its proprietor.

Checklist for Proprietorship Registration

Proprietorship registration in India is quite easy and simple as there is no need to incorporate it under any specified law. All that you require is a single person to own, manage and control the business. However, there are certain provisions that place restrictions on a proprietor which have been mentioned below along with other minimum requirements for proprietorship firm registration. While proprietorship registration is not required, it must still undertake all necessary tax registrations like any other business operating in India.

  • An Investor who is an Indian citizen and above 18 years of age
  • Prior government approval if the investor is a NRI
  • Invest a certain amount of capital
  • A new unique and valid name
  • A registered address of the proprietorship

Proprietorship Registration Process

You can easily register a proprietorship online through Domiyance. To register a proprietorship, only the PAN & Aadhaar card of the business owner is required. We can help you obtain the following registrations in less than 15 days:

  • GST Registration
  • UDYAM Registration
  • Zero-Balance Business Current Account with LEDGERS Accounting Software

Once, you have registered for the proprietorship registration through Domiyance, please follow the steps below and upload the following documents by logging into LEDGERS.

  • Step 1: Login to LEDGERS using the email address for payment.
  • Step 2: Go to Services Tab & Select Proprietorship Engagement
  • Step 3: Upload your PAN & Aadhar Card Copy
  • Step 4: A Domiyance Registration Expert will file the registration application with GST Department, MSME Department and Bank for Current Account.
  • Step 5: Access to LEDGERS Accounting Software is provided for GST invoicing, GST filing and other services.

Documents Required for Sole Proprietorship Registration

Although, proprietorship registration in India is not required under any specified law, it does require several other tax and legal registrations like any other form of business would. These include opening a bank account, finalising a registered office address, GST registration, Professional tax registration (if applicable), Shops and Establishment Registration, and MSME registration. The list of documents required for all the above mentioned registration to complete proprietorship registration in India,  have been mentioned in the table below:
A. DOCUMENTS OF THE PROPRIETORB.DOCUMENTS OF THE REGISTERED ADDRESS FOR PROPRIETORSHIP REGISTRATION
  • Two Coloured Photographs
  • Aadhar Card
  • PAN card
  • Cancelled Cheque
  • Address Proof
    (Voter ID / Driving License / Passport / Bank Statement not older than 2 months / Electricity Bill not older than 2 months).
  1. Proof of address
    (Electricity Bill / Property tax receipt / Sale Deed / Stamped and notarised Rent Agreement. The bills and receipts must not be older than two months.)
  2. NOC from the Owner of Premises in the prescribed format.

Compliances for Proprietorship

The following are some of the compliances that are applicable for a sole proprietorship:

Income Tax Filing: The business owner of a proprietorship will have to file personal income tax return using form ITR-3 or ITR-4.

Business Income: Only income tax forms ITR-3 and ITR-4 allow for declaring business income. Hence, all proprietorships will have to file form ITR-3 or ITR-4 to be compliant with the income tax regulations.

GST Return Filing: If a proprietorship has GST registration, GST return must be filed every month and quarter as per the scheme under which the business is registered.

TDS Returns: In case the proprietorship is having employees or purchasing goods/services beyond a certain threshold – tax must be deducted at source and TDS returns must be filed every quarter.

In addition to the above, various other compliance requirements maybe applicable to the proprietorship based on industry and location.