Facebook
Startup Right

Startup with IndiaFilings

Get professional help for starting a business in India. Free consultation for anyone interested in starting a business.

Speak to Advisor Speak to Advisor
GST Compliance

Outsource GST Return Filing

Outsource your GST compliance and GST return filing to IndiaFilings. Our dedicated Tax Advisors can help you maintain tax compliance.

LEDGERS Accounting Software

LEDGERS Accounting Software

Build your business on the next generation, LEDGERS accounting software integrating all aspects of accounting like invoicing, banking and compliance.

New User Existing User

Income Tax Return Filing

Prepare your accounts and file your business income tax return with Tax Advisor assistance through IndiaFilings at just Rs.2899/-

Register for Income Tax eFiling

Proprietorships are ideal for very small businesses in the unorganised sector. IndiaFilings offers proprietorship registration from Rs.2899/-

loading...

Eligibility

Proprietorships can be started in India by an Indian Citizen. Since, there is no legal entity, the Proprietors PAN is used as the basis of all registrations and compliance

Proprietorship Registration

A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship's are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating. However, after the startup phase, proprietorship's do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence - which are desirable features for any business. Therefore, proprietorship registration is suited only for unorganised, small businesses that will remain small and/or have a limited period of existence.

There is no mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations. For instance, VAT or Service Tax or GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.

IndiaFilings is the market leader in company registration services in India, offering a variety of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration , Producer Company Registration and Indian Subsidiary registration. The average time taken to complete a proprietorship registration is 3 - 5 working days, subject to government processing time and client document submission. Get a free consultation for proprietorship registration and business setup in India by scheduling an appointment with an IndiaFilings Advisor.

Company Name Availability

Companies Act, 2013 does not permit registration of identical or similar names

9 Articles to Read Before Proprietorship Registration

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

2899

all inclusive fees

Standard

5899

all inclusive fees

Premium

15899

all inclusive fees

  • Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
  • Standard and premium package applicable only for proprietorship with less than Rs.15 lakh turnover per annum

Proprietorship Bank Account Opening


Bank Account Opening

The Reserve Bank of India has laid out Know Your Customer (KYC) norms for opening of current account in the name of a sole proprietorship and all Banks have procedure to open sole proprietorship current account in business name. GST registration is required in most banks to open a current account or business account for a proprietorship.

How many people are required to start a Proprietorship?
Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter.
What are the requirements to be a Proprietor?

The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.

What are the documents required to start a Proprietorship?

PAN Card for the Proprietor along with identity and address proof is sufficient to start a Proprietorship and obtain other registration, as applicable or required.

What is the capital required to start a Proprietorship?

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

How will IndiaFilings help me start a Proprietorship?

An IndiaFilings Associate will understand your business requirements and help you start a Proprietorship by obtaining the relevant registrations. IndiaFilings will help obtain the necessary registrations to help the Proprietor open a bank account in the name of the business, thereby proving an identity for the business.

How to open a bank account for a Proprietorship?

To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor provide two forms of registration for the Proprietorship along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, shop & establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.

Will my Proprietorship firm have a separate legal identity?

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.Therefore, 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.

Will my Proprietorship firm have a Certificate or Registration?

Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.

How to register the name of a Proprietorship?

There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there are no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.

How can I transfer my Proprietorship?

A business operated by proprietorship firm cannot be transferred to another person, unlike a Limited Liability Partnership or a Private Limited Company. Only the assets in the Proprietorship can be transferred to another person through sale. Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person.

Can other people invest in a Proprietorship?

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors.

What are the annual compliance requirements for a Proprietorship?

Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filign may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Is audit required for a Proprietorship?

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.

Can I later convert my Proprietorship into a Company or LLP?

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 are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.

LEDGERS Accounting Software

LEDGERS is the next-generation of GST platform, built on the AWS cloud with deep integrations to various other services. The platform is designed to be simple and intuitive. You can now maintain accounts for your business with no accounting knowledge or experience.

Signup for Free
Professional Tax Invoice

Professional Tax Invoice in Minutes

Quickly create, send and track GST compliant tax invoice in minutes with in-built GST rate calculator and GSTIN validity tool.

  • Send Whatsapp Invoices
  • Send SMS or Email Invoices
  • Track Invoice Opens
  • Track or Split Payments by Invoice
Track Payables

Track Payables and Claim Input Tax Credit

Manage vendors, split payments, track payables and maintain purchase register that syncs with GSTN to ensure accurate input tax credit claim.

  • Vendor Onboarding & Management
  • Track Payments & Payables by Vendor
  • Initiate Payments through NEFT/RTGS/IMPS
  • Automated Input Tax Credit Tracking
Automate Accounting

Automate Accounting & Integrate Banking

Automate accounting processes, integrate banking and supercharge your accounting department with next-generation accounting/banking tools.

  • Integrated Banking & Payments
  • Automate Receivables Management
  • Automate Input Tax Credit Tracking
  • Automate GST Return Preparation
One-click GST Return Preparation

One-click GST Return Preparation

Prepare your monthly or quarterly GST returns with one-click and upload the data to GSTN Portal. Seamless integration with GSTN Portal through APIs.

  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-9 Return Filing
  • GSTR-2A Fetch from GSTN
Improve Internal Controls

Improve Internal Controls & Get Deep Insights

Reconcile bank accounts, input tax credit, receivables, payable and more using our intuitive and easy to understand dashboards.

  • Bank Account Reconciliation
  • Input Tax Credit Reconciliation
  • Receivables Reconciliation
  • Payables Reconciliation
Create, Manage and Track GST eWay Bills

Create, Manage and Track GST eWay Bills

Create, manage and track thousands of GST eWay Bills with the GST eWay bill tool inbuilt and integrated with LEDGERS.

  • Create GST eWay Bill
  • Manage GST eWay Bill
  • Track GST eWay Bill
  • Bulk eWay Bill Generation

Integrate LEDGERS

LEDGERS is built to seamlessly sync and work with other online and offline applications you regularly use. Easily import or export data from LEDGERS to Excel or Tally.

Need some other integrations? Our dedicated team can help you simplify accounting by building custom connectors.

  • GSTN
    CloudFlare
    Excel
  • googlecloud
    gpay
    android
  • upi
    aws
    tally
X Need help with something?

Need help with something?

loading...
User

Hi there,

Online We are available online!