Proprietorship Registration
START YOUR BUSINESS IN JUST 1 DAY
Starting your business as a proprietorship is easy when done by RPG Legal. A proprietorship needs only a few essential registrations. Our dedicated team will help you with all the documentation. We extend our support from documentation to preparation and filing.
How to Start Sole Proprietorship Firm in India
A proprietorship business is the simplest & manageable form of business, which can be started or closed at the will of its owner, also known as proprietor. There is no law which requires a proprietorship to be registered, hence the registration of proprietorship firm is not possible as required in case of a company, LLP or partnership firm.
However, there are various registrations or licenses which may be needed for a proprietorship business depending on the nature of activity like GST, FSSAI, Drug License, PSARA etc. Bankers may also ask for two KYC documents in the name of the firm to open a Current Account in the name of Proprietorship Firm. So, proprietorship business is ideal for small businesses and first time Entrepreneurs who would like to get a taste for business. We are always available to assist in the starting proprietorship firms pan India.
Advantages of Sole Proprietorship Firm
- Just Think and Start
Since there are no registrations or licenses are required to start a sole proprietorship firm. If you open your doors and start doing business, you just created a sole proprietorship. The most significant advantage in starting a Proprietorship is the ease of setup and less paperwork.
- Relatively Inexpensive
Compared to other forms of businesses, Proprietorship is less expensive. No minimum capital is prescribed and it can be based on business requirements. Proprietorship can be formed without any legal formality. Thus Proprietorship Firm is economical to form and operate.
- All Income Goes to Owner
In Sole proprietorship firm, owner or proprietor keeps all the profits of the business to themselves. They are not required to share the income or profit with other stockholders or investors as they would with different types of business structure, such as Partnership, LLP & Companies.
- Control over the business
Sole proprietorships have only one owner, but they are allowed to have employees. The owner controls everything that goes on in the business and does not have to seek the approval of a board of directors, stockholders or anyone else.
- Secrecy
It is easy to maintain secrecy in a sole proprietorship business. This is because, as per the provisions of the law a sole proprietorship business is not required to publish its books of accounts, annual reports and other confidential information.
- Tax Benefit
The PAN of the Proprietor and Proprietorship firm is the same. The income of the proprietorship Firm includes in the income of its proprietor itself. Hence slab based income tax rates apply, which results in a substantial tax benefit.
Documents Required to Register Proprietorship
Documents of Proprietor
- Two Photograph
- Copy of Pan Card
- Valid Identity Proof
- Latest Address Proof
- Cancelled Cheque of Proprietor
Documents of Premises
- Utility Bill in name of Owner to the premise
- Rent Agreement or
- Lease deed, sale deed, Property Tax Receipt
- NOC from the Owner of Premise
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FREQUENTLY ASKED QUESTIONS
In India, a single person is required to start a Proprietorship, and a Proprietorship can have only one promoter.
Any Indian citizen can start a proprietorship Firm in India. Registration or license may or may not be required, depending on what business activity you are planning to establish.
No foreign funding is allowed in a proprietorship form of business. However, an NRI or a Person of Indian Origin (POI) can invest in proprietorship with prior approval from the Central Government of India.
For starting a proprietorship business, there is no limit on the minimum capital. Therefore, Proprietorship firm can be started with any amount of money.
No, Only Proprietor’s PAN number is required to start the business process.
Bankers Required two KYC documents in the name of the firm to open a Current Account in the name of Proprietorship Firm.
Proprietorship firm does not have a Certificate of Incorporation or Certificate of Registration as it does not have a separate legal entity. However, for its legal recognition, the registration may be obtained under GST, Shop & Establishment or MSME Department.
Being a sole proprietorship, you must file Income Tax Return and TDS return. Also, you need to submit your GST Returns if you obtained GSTIN.
Since there is no regulation or registry for registering the name of a proprietorship, You can adopt any name and protect that name under the trademark to prevent the duplicacy of your trade name.
Yes, conversion of sole proprietorship into partnerships and private limited companies at a later stage can be done. However, the procedures to convert a proprietorship business into a Company or LLP are a little complex, expensive and time-consuming. Therefore, it is recommended for many entrepreneurs to consider and start an LLP or Company instead of a Proprietorship.
What our clients have to say
We take pride! Not in our execution, But in your words. Here’s what keeps us going strong.
Had an outstanding experience working with RPG Legal to set up my company & Trademark Registration. Even minute details were explained and all aspects provided. Ready to support beyond hours, hat’s off guys. Special thanks to Ms Preet & Simran to assist us in stepping by step procedure and updating me on every stage.
D D YadavDirector, Rosemoon Healthcare Private Limited
It was a very immeasurable experience in setting up my company. The team are professional & understands the need and executes at the pace needed. I really appreciate & recommend.
Prashant SinghDirector, ShiftPurple & Nextdot
Dedicated, supportive and understanding team…
What else do we need to get the jobs done? Thanks to RPG Legal for helping us. And I hope this will be maintained as you already established a great business relationship. Cheers.!!
Vaibhav Vishal SrivastavaDirector, Certslearning Private Limited
Highly supporting system for new business.. Thank you RPG Legal for providing every type of business-related support to new in the field like me… and want to really appreciate the work of “Mr Anand” who provides us helpful advice each and every time related to our business.
Sumit GhugharwalDirector, Ghugharmedia Private Limited
We’re using your services form the last three years. We are delighted with the way solutions are provided in matters we have endeavoured professional help. We admire the association and look forward to a similar experience in the years ahead.
Saajib ZamanFounder, Proict LLC
We started with a Private Limited company incorporation for our Educational Institute. We have been taking the services from last two years and had an amazing service experience with the team. Smooth work everything was completed on time with perfection.
Apoorva BhargavCo-Founder, EDEN IAS
