Sole Proprietorship Registration

A sole proprietorship is a type of entity which is owned, controlled and runned by one person. There is no requirement to register sole proprietorship firm. The sole proprietorship firm has no separate legal entity and hence sole proprietor (person) is personally liable for all activity done by sole proprietorship firm. Proprietorship firm is most common type of entity for doing business in India and is best suited for small business setup as it has least compliance to be complied with.

 

The average time to complete process for sole proprietorship registration is 5 – 7 days. A sole proprietor may use a trade name or business name other than his/ her name. They may also apply for trade mark for name being used for doing business.

 

 

Benefits of Sole proprietorship registration


 

  • Easy to establish
  • Lesser statutory compliances
  • Full control of owner
  • Complete owner control
  • Easy to close/windup

PROCESS FOR SOLE PROPRIETORSHIP REGISTRATION


 

There is no legal requirement for registration of sole proprietorship firm however for opening bank account we require at least one local registration certificate from government i.e. Shop Establishment/ MSME registration etc.

Further following will be steps involved in forming sole proprietorship firm: –

  • Finalizing name of sole proprietorship firm
  • Getting shop Establishment/ MSME registration
  • Applying for PAN and TAN registration
  • Applying to Bank for opening bank account
  • Getting GST registration (if turnover more than 20 lakhs)
  • Applying for trade mark registration (not mandatory however advisable)

DOCUMENTS REQUIRED FOR SOLE PROPRIETORSHIP REGISTRATION


 

  • ID and address proof of owner (PAN and Aadhaar card)
  • Address proof of place of business (Electricity bill and ownership proof)
  • Government registration certificate specifying name and address of sole proprietorship firm i.e. Shop Establishment registration, MSME registration, Trade license registration etc.
  • Basic Plan

  • INR3000/mo
    • Sole proprietorship firm registration

Best In The Market
  • STANDARD Plan

  • INR4000/mo
    • Sole Proprietorship Firm
    • PAN Registration
    • Shop & GST Registration

  • PREMIUM Plan

  • INR7500/mo
    • Sole Proprietorship Firm
    • PAN Registration
    • Shop  & GST Registration
    • Trade Mark Registration

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