PROPRIETORSHIP REG
A sole proprietorship is the most common form of business used by micro small businesses in the unorganized sector. A proprietorship business is easy to start has minimal operating regulatory compliance. As its name suggests proprietorship business is owned, Controlled managed by one person. It is most suitable for unorganized small businesses because it does not provide benefits such as limited liability, Corporate status, And separate legal entity, Etc.
A sole proprietorship is the most common form of business used by micro & small businesses in the unorganized sector. A proprietorship business is easy to start & has minimal operating regulatory compliance. As its name suggests proprietorship business is owned, controlled & managed by one person. It is most suitable for unorganized & small businesses because it does not provide benefits such as limited liability, corporate status, and separate legal entity, etc. The proprietor is personally liable for all the liabilities of proprietorship. The government does not provide any framework for registration of a proprietorship. Hence, it exists through various tax registrations & business registrations in the name of proprietor like GST registration, etc. to establish that the proprietor is operating a business as a sole proprietorship.
Document Required
Copy of PAN and Aadhar card of Applicant
Address Proof of Applicant (Voter ID, Passport, Aadhar, Driving License)
Cancelled Check of Bank Account
Registered Office Address Proof Electricity Bill along with Rent Agreement plus NOC (if Rented)/ Ownership proof (if Owned)
Passport size photographs of Applicant
Process Involved
DOCUMENTS
Receipt of the required documents
SHOP AND ESTABLISHMENT LICENSE
Application for Shop and Establishment License
GST REGISTRATION
Application for GST Registration
Package Includes
Setting up consultancy for Proprietorship
GST Registration Certificate
Shop and Establishment License
Frequently Asked Questions
You need to be a Citizen and Resident of India having PAN Card and Valid Address Proof ( Voter ID, Passport , Driving License or Aadhar)
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business and There will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.
A business operated by proprietorship firm cannot be transferred to another person, Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person because PAN can not be changed
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Proprietorship firm.
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP expensive and time-consuming, PAN and all Relevant registration will be applied again and hence it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.