Proprietorship Firm Registration
Overview of Proprietorship Registration
- Proprietorship registration is a Single person firm registration. It is also called as sole proprietorship firm registration.
- Most of the people can choose proprietorship firm in India because it is the easiest way to start the business as compare as other company registration.
- A Proprietorship firm can have any name but it does not have already registered trademark name.
- A Proprietorship Registration has less than Rs. 2.5 lakhs of income per annum is not required to pay any income tax.
- Sole Proprietorship firm registration & Private limited company registration was mainly register to open a bank account in the name of their company name.
- In a proprietorship firm, the owner of the person was called Proprietor. The proprietor manages the entire company and also he/she is the responsible of each and every transaction made in his/her company.
- Proprietorship firm is not separate legal entity as compared as other company registration.
Proprietorship Firm registration can be done in 5 ways in India
Register under Shop and Establishment Act License
Register under Trade License
Documents required for Proprietorship Firm registration
Proprietor Aadhaar card
Proprietor Pan card
Proprietor Passport size photo
Latest company located rental or lease agreement and eb bill (For rental place), or Eb bill and property tax receipt (For own place)
Proprietor's saving account passbook front page or cancelled cheque or bank statement
Sole Proprietorship Firm Registration Process
Get the proper details and documents for particular registration
Verify all the details and documents and filing to the Govt side
Get the certificate and send to Whatsapp and mail
Advantages of Proprietorship Firm
Formation
Proprietorship firm can handle only single person who operates and manages the whole business, so 100% of the profits belong to the proprietor.
Time Period
It will take very less time to register as compared to other company registration.
Income Tax
The income tax rate for sole proprietorship firm is the same as that of the income tax rate of individuals.
Low Cost Registration
As comparison to other business form, cost of registering proprietorship firm is very low.
Decision Making
The proprietor does not have to consult anyone for taking his decision. So this helps him to make quick decisions.
Life Time Certificate
It is the life time certificate when you register under MSME/Udyam or GST. You can’t renew that certificate.
Different types of Company Business Structures
Proprietorship Firm
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
Partnership Firm
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
Limited Liability Partnership (LLP)
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
One Person Company (OPC)
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
Private Limited Company
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
Public Limited Company
Number of Members/Shareholders
Number of Directors/Partners
Act
Registration
Liability Protection
Capital Amount
Foreigners
Ownership Transferability
Incometax Filing Forms
Compliance
Frequently Asked Questions
01. Who can start a proprietorship firm?
Any Indian citizen who have valid proof of document can start a proprietorship firm.
02. What is the minimum and maximum amount to start a sole proprietorship firm?
There is no minimum and maximum capital amount for starting a Proprietorship firm. In proprietorship firm registratin, we can start a business without investment amount.
03. Is that proprietorship Firm having Certificate of Incorporation?
No, proprietorship firm do not have a Certificate of Incorporation.
04. Can other people invest in a Proprietorship firm?
Proprietorship firms are business entity that are owned and managed by single person. So Proprietorship firm cannot issue shares or have investors.
05.How to register proprietorship firm?
In india we can register proprietorship firm for following ways.
1) Register under MSME/Udyam
2) Register under GST
3) Register under FSSAI
4) Register under Shop and Establishment Act License
5) Register under Trade License
06.Is that we can take separate pan card for proprietorship firm?
We can’t take seperate pan card for proprietorship firm, proprietor pan card was enough for it.
Proprietorship Firm registration fees
Package 1
- Register under MSME/Udyam
Package 2
- Register under FSSAI
Package 3
- Register under GST
*Amount should be vary on depends upon your business activity and annual turnover.