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Proprietorship Registration

What is Proprietorship Registration?

Proprietorship or sole proprietorship which is also known as sole trader, is a type of business entity owned and operated by one person. The sole proprietorship is the simplest business form under which one can operate a business. It is also like a individual giving business name for himself to perform business activities professionally. Income and losses are taxed on the individual's personal income tax return. . The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship is one of the easiest and simplest form of business entity to maintain in India. There is no formal sole proprietorship registration and to start a proprietorship only PAN number for the Proprietor

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Advantages of Sole Proprietorship Registration

The major advantage of taking GST or starting a Proprietorship is that person can open Current Bank Account in the name of its Firm. After the registration it become easy to open a current Account. A person gets the Separate Business Identity.

  • Easy to Start: As we know that Proprietorship registration is the simplest form of Business Registration, It is the easiest way to start your Business as compared to other Form such as Private Limited Company Registration, OPC Registration, Partnership Registration, Public Limited Company Registration.
  • Easy to Wind Up: To wind-up the business only cancellation of tax registion is required such as if you have taken GST registration on Your Business Name then have you to apply for cancellation of GST Registration.
  • Full Control: Individual has Full control over the business as it is the sole owner.
  • Open Current Account: Opening Separate Account in the name of Firm.
  • Less Compliances: As it is the easiest way to incorporate, maintenance is also low as compared to other.
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Disadvantages of Sole Proprietorship Registration

The Biggest disadvantage of Proprietorship Registration is its unlimited Liability.The owner is Personally liable for all the debts and liabilities of the business.If the business doesn't have the money to pay off then the owner personal property is liable for all the dues and Liabilities.

  • Unlimited liability of the owner.
  • No perpetual succession.
  • No separate legal entity.

Tax on Sole Proprietorship Registration

As we know that proprietorship is not a separate legal entity i.e its identity is not different from its owner. Therefore sole proprietorship will be taxed at individual slabrate.It will be taxed in individual hand not separately.

A Sole Proprietorship is taxed as an individual on the Slab Ratesapplicable.

The Slab Rates are: -

  • For Income up to Rs 2,50,000 - No tax
  • Income from Rs 2,50,000 – Rs 5,00,00 = 5%
  • Income from Rs 5,00,000 – 10,00,000 = 20%
  • Income more than Rs 10,00,000 = 30%
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
  • Cess: 3% on total of income tax + surcharge.

Get In Touch

+91-8800 754 837

Our Packages

GST Registration

Rs 999/-

  • GST Registration of Proprietorship Concern

Import Export Code

Rs 2,999/-

  • IEC Code for Proprietorship Concerns

Delhi Shop Act Registration + MSME

Rs 1,999/-

  • Shop & Establishment Act + MSME for Sole Proprietorship Concerns

Steps/Process

Step 1

Documentation

Please provide us the required documents to initiate the process

Step 2

Startup Consultation

Proprietorships do not have a process of incorporation. Therefore, our Business Advisors will advice you on the way the identity of the Proprietorsihp business can be established through other Government registrations.

Step 3

MSME + Shop Act Registration

MSME + Shop Act Registration

Step 4

GST Registration

The identity of a Proprietorship can be established through GST Registration (if applicable) mentioning the business name. GST registration takes 3 to 5 days, subject to Government processing time.

Step 5

Import Export Code

The identity of a Proprietorship can be established through IEC Registration (if applicable) mentioning the business name. IEC Registration takes 3 to 5 days, subject to Government processing time.

Step 6

Bank Account

We will help you in opening a Current Account in your choice of bank after the registration

FAQ

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Documents Required for Proprietorship Registration

PAN card of Applicant
Address Proof of Applicant (Voter ID, Passport, Aadhar, Driving License)
Cancelled Cheque of Bank Account
Registered Office Address Proof Electricity Bill along with • Rent Agreement plus NOC (if Rented) • Ownership proof (if Owned)
Four photographs of Applicant
Rubber Stamp

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