Proprietorship is an alias for the Proprietor to do business. Proprietorships are ideal for very small businesses in the unorganised sector. IndiaFilings offers proprietorship registration from Rs.2899/-
From Rs.2899 /- all inclusive fees
EMI: Rs.259 for 12 months*
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.
Proprietorship needs minimal registration. Therefore, it is one of the easiest form of business entity to start with minimal formalities. However, after starting up a Proprietorship, it is relatively harder to open a bank account or obtain a payment gateway in the name of the business - since more registrations like VAT or Service Tax or GST Registration may be required.KNOW MORE
Since the name of a proprietorship is not registered, a proprietorship can choose to have any name - as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.
Proprietorship with less than Rs. 3 lakhs of income is not required to pay any income tax, as proprietorship's are taxed as the individual owing the business. However, unlike a company or LLP, a proprietorship cannot enjoy some of the tax deductions, which could potentially increase the tax liability.
Proprietorship is the only type of business entity that can be registered and operated by one person. To register a one person company, a nominee Director is required and for all other types of entities like company or LLP or partnership firm, two or more promoters are required.
The Proprietor and the proprietorship are one and the same for all legal purposes. Hence, there is no formality for winding up or closing a proprietorship. In most cases, to close a proprietorship, only the tax registrations obtained in the name of the proprietor must be cancelled.
Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Proprietorship registration with TAN registration, MSME under Udyog Aadhaar, iCFO compliance tracking and LEDGERS billing software. Inclusive of government fee and taxes.
From Rs.2899 /- all inclusive fees
EMI: Rs.259 for 12 months*
Proprietorship registration with TAN registration, GST registration, MSME under Udyog Aadhaar, 3 month GST return filing, iCFO compliance tracking and LEDGERS accounting software. Inclusive of government fee and taxes.
From Rs.5899 /- all inclusive fees
EMI: Rs.527 for 12 months*
Proprietorship registration with TAN registration, GST registration, MSME under Udyog Aadhaar, 1 year GST return filing or trademark filing and LEDGERS accounting software. Inclusive of government fee and taxes.
From Rs.10899 /- all inclusive fees
EMI: Rs.973 for 12 months*
IndiaFilings.com can help you register a proprietorship in 3 to 5 days, subject to government and client processing time.
Got questions? Request a call from an IndiaFilings Business Advisor.Let's talk!
Proprietorships do not have a specific process for incorporation. Hence, our Business Advisors will advice you on the way the best way for establishing the identity of the Proprietorship firm and opening a bank account, on a case by case basis.
The identity of a Proprietorship can be established through Tax Registrations like TAN or VAT registration or Service Tax registration of GST registration in the name of the proprietor. Hence, based on the type of business, the relevant tax registration is obtained for the business.
Udyog Aadhaar is a registration for all micro, small and medium sized businesses. Udyog Aadhaar registration along with a tax registration can be used for opening of bank account. Hence, Udyog Aadhaar registration is obtained for the business.
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