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Sole Proprietorship Registration

Get your Sole Proprietorship Company Registration at just Rs. 2499/-

In India, micro and small enterprises in the unorganised sector often choose to register themselves as a sole proprietorship firm. It is an unregistered business entity that is owned, managed, and controlled by a single individual known as the Sole Proprietor. Starting a sole proprietorship firm is fairly simple due to minimal regulatory requirements for operating a business. Proprietorship registration is ideal for entrepreneurs who are just starting out and have a modest number of clients. However, the liability in sole proprietorships is not restricted, and their existence is not independent of the owner.

The sole proprietor invests in the business and is solely responsible for all its profits and losses. They manage and control the business operations and may appoint others to assist in running the business, but retain full ownership and control.

As a registered sole proprietorship firm, you can start various local businesses such as grocery stores, parlours, boutiques, retail outlets, and more. A sole proprietorship is also suitable for small traders and producers.

Because it is not governed by any specific legal framework, the sole proprietorship is the simplest form of business to operate in India. The compliance requirements are minimal and easy to follow.

With Finca Work, setting up your sole proprietorship becomes even easier, faster, and hassle-free. Connect with our experts today to get started!

What is SOLE PROPRIETOR ?

SOLE PROPRIETORSHIP FIRM REGISTRATION ONLINE

A sole proprietor is the owner of a sole proprietorship firm. Since the sole proprietor owns the business, they are entitled to all the profits earned by the company. The proprietor holds complete control over the operations and is solely responsible for making all business decisions.

To operate as a sole proprietor, certain permits and licenses may be required, depending on the type of business, industry, state, and local regulations. A sole proprietorship firm registration online is a business structure where the owner and the business are legally the same entity. A sole proprietor is also commonly referred to as a sole trader, independent entrepreneur, or individual business owner.

Benefits of Proprietorship REGISTRATION

Why Sole proprietorship firm registration ?

Easy to Establish

The formation of proprietorship enterprises does not require a lengthy registration process. A proprietorship business operates under the owner’s legal name. This clause eliminates the need to register the company separately until it is absolutely necessary. This simple registration process makes it easy for business owners to register their businesses, which is a good thing.

Easy to Operate

It is easier to comprehend and operate a firm when you are the only proprietor. Only the owner has the authority to make decisions. As a result, the choice is taken more quickly and in the best interests of the organisation. Because there is only one individual to make and implement strategies for the business, one-owner businesses have more easy operational functioning.

Tax Advantages

If the profits of a sole proprietorship are less than Rs. 2.5 lakh per year, the sole owner is not required to pay income tax. Starting small and saving money on taxes is a huge benefit for the company. It is important to note, however, that once the profits exceed Rs. 2.5 lakh per year, the company must pay income taxes.

Sole Beneficiary of Profits

Because there is only one owner of a proprietorship, there are no fixed restrictions governing the money made by the business. The gains are accumulated by the owner, who then invests them in the market and other activities. Sole ownership eliminates the company’s benefit-related conflicts. Money is brought in to help the firm’s processes run smoothly.

Important Documents

Documents Required

The following general documents are necessary for the majority of the types of registrations that are advised for sole proprietorship firms. For some sorts of registrations, there may be some exceptions. Owners should visit the official website of the government organization issuing the registration to ensure that they have all of the relevant paperwork.

The following documents are required to register a sole proprietorship firm online:

1. Aadhar Card: The number on your Aadhar card is required for official registration. This is necessary to link the business with the other details associated with the Aadhar card.
2. PAN (Permanent Account Number) card: To file Income Tax Returns, a PAN card is required at the time of proprietorship registration. As a result, obtaining a GST registration number is also required (if applicable).
4. Bank account number: The bank account associated with office transactions must be given. If the applicant does not have a separate corporate bank account, this can also be his or her personal account.
4. Registered office proof: Any registration requires certified office proof.

SOLE PROPRIETORSHIP REGISTRATION PROCESS

Register proprietorship firm online in following steps

1- First step is to file the application of PAN Card.

2- After PAN Card allotment, the next step is to choose a unique name for your sole proprietorship firm registration process online.

3- The final step is to open up your sole proprietorship firm registration bank account. After this, you can start the business operations.

A sole proprietorship firm registration process does not require any specific incorporation approval from the department, however, the owner is advised to obtain some necessary registrations to ensure smooth operational functioning of his/her sole proprietorship firm registration online. The following are the pre-requisites to register sole proprietorship firm online:

1. Shops and establishment registration

The Shop and establishment licence applies to all types of businesses, including shops, restaurants, commercial establishments, retail trade/business, profit-making organisations, public amusements, and so on. Regardless of whether a business is fully operational or not, it is necessary to register the business. This licence is issued by the local municipal corporation and is based on the number of employees working in a sole proprietorship firm.

2. GST Registration Online

Many indirect taxes, including as service tax, value added tax, central sales tax, excise duties, and additional customs duties, have been replaced by GST. GST registration for sole proprietorship company is necessary for individuals who make inter-state supplies of goods and services and have an annual turnover of more than Rs.40 lakh.

Obtaining a GST registration establishes the sole proprietorship firm registration as a legal seller of services or goods. This has resulted in a significant reduction in taxation and compliance costs. If a sole proprietorship firm operates without a GST registration, fine or penalty apply, according to the GST Act.

3. Udyog Aadhar Registration (MSME Registration)

Under the Micro, Small, and Medium Enterprise Development Act, 2006, micro, small, and medium-sized businesses in India are eligible for Udyog Aadhar Registration.

Previously known as MSME registration, the Udyog Aadhar registration process is entirely online just like sole proprietorship registration process. The following are the primary goals of Udyog Aadhar registrations:

a) To enable micro, small, and medium-sized businesses to compete effectively with international competitors.
b) To effectively address the problems of unemployment and poverty by promoting the growth of micro, small, and medium enterprises on a large scale.
c) To make available to SSI units the benefits of various government schemes through a single point of contact.
d) To protect small-scale industries from financial exploitation at the hands of large corporations.

4. TAN Registration

The Tax Deduction Collection Number, or TAN, is a ten-digit number that is required for all individuals who are required to pay the Tax Deduction at Source, or TDS, on behalf of the government.

To quote the TAN number, the person deducting the tax at the source must deposit the deducted tax to the central government.

It is important to note that a salaried worker is exempted from obtaining a TAN or deducting tax at the source. While distributing salaries or making payments to the contractor or subcontractors, or paying the rent amount of above Rs.180,000 per year, a sole proprietorship firm registration and other entities must deduct tax at the source.

5. FSSAI Registration

If the sole proprietorship firm registration online is involved in the selling or handling of food goods, an FSSAI registration should be sought in his name from the Food Safety and Standard Authority of India.

The following is a list of documents that must be submitted in order to register with the FSSAI:

a) Photo of the food business owner or manage.
b) Ration card, voter ID card, Pan card, driving licence, passport, Aadhar card, Senior Citizen Card, Department Issued ID are all examples of identity proof documents.
c) Supporting Documents (if any): NOC by the Municipal council, Health NOC.

 

FAQs

Few doubts important to be resolved quickly

1 How much capital is required to start a sole proprietorship firm registration process?
There is no set minimum amount required to start a proprietorship firm registration process; once registered, you can start it with as little as Rs. 10,000 or as much as Rs. 1 crore.
2 How many people are needed to start a sole proprietorship?
As the name implies, sole proprietorship means that there is only one person who owns and manages the business.
3 Is it necessary to be the owner of the property where my sole proprietorship registration office is present?
No, a rented office space can also be used for the sole proprietorship registration online as well. The rental agreement and a letter of authorization from the landlord are required for the registration application.
4 How long does it take to establish a sole proprietorship?
A proprietorship firm registration process online can be completed in about 15 days.
5 Is GST registration required for sole proprietorship firms?
GST registration for Sole proprietorship firm registration online is only required if your yearly turnover exceeds Rs 40 lakh; else, it is an optional component of your registration application. If you live in a north-eastern Indian state and have a turnover of Rs.20 Lakhs however, then GST registration is required.

Our Incredible Packages

INCLUDING SOLE PROPRIETORSHIP FIRM REGISTRATION FEES

GOLD

₹ 2499/- (all inclusive

₹4999

  • Registration within a week
  • Udyam Registration (MSME)
  • GST Registration
  • ISO Certification (1 Year)
  • 1 year Domain & Hosting
  • Basic On-Page SEO
  • Google Analytics & Web mails
  • Trademark Registration
This is Perfect For Me
PLATINUM

₹ 12499/- (all inclusive)

₹16999

  • Registration within a week
  • GST Registration
  • Udhyam Registration (MSME)
  • ISO Certification (1 Year)
  • Professional Website
  • Website Support for 1 year
  • 1 year Domain & Hosting
  • Basic On-page SEO
  • Google Analytics & Web mails
  • Trademark Registration
This is Perfect For Me
GOLD

₹19499/- (all inclusive)

₹25999

  • Registration within a week
  • GST Registration
  • Udyam Registration (MSME)
  • Professional Website
  • Website Support for 1 year
  • Google Analytics & Web mails
  • ISO Certification (1 Year)
  • Trademark Registration
This is Perfect For Me
DIAMOND

Bronze Package

Pricing plan for startup company

149

  • Collaboration with up to 10 users
  • Collaboration with up to 10 users
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