Proprietorship Firm Registration
Proprietorship firm registrations service is provided by TaxHills.We have made Startup registration services online,simple and easy for India.
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What is Proprietorship Business
A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship is the most common type of business in India and it is used by most micro and small businesses operating in the unorganized sectors.
Proprietorship are simple to start and have minimal regulatory compliance requirements for operating. This entity is ideal for entrepreneurs who are getting into business for the first time and for small businesses with few clients.
How to Start PROPRIETORSHIP BUSINESS
Sole Proprietorship Registration
To Start proprietorship business there is no specific registration requirement for a proprietorship business. However, to start the same, some other registrations are required as it is included in our basic package. The Sole Proprietorship is the simplest form of business in which enterprise can start. Only one person invests entire capital in the firm, and he alone is entitled to the business’s profits.
Decide the Unique name of your Firm.
Apply for Pan Card of Proprietor if not already there.
Obtain TAN Number for TDS Compliance
Apply for GST Registration
Register as MSME
DOCUMENTS REQUIRED FOR PROPRIETORSHIP BUSINESS
- Colour Photo – Two
- Aadhar Card
- Pan card
- Cancelled Cheque
- Electricity Bill
- Property tax receipt
- Sale Deed
- Rent Agreement(if rented)/
- NOC From Owner
- Voter ID card
- Driving License
- Bank Statement
- Electricity Bil
WHAT ARE ADVANTAGE AND DISADVANTAGE OF PROPRIETORSHIP BUSINESS
The entrepreneur can start operations and receive payments from clients as no registrations are required to start a proprietorship.
The other advantage of a Proprietorship is that it requires no additional compliance in most cases. The PAN of the proprietor and proprietorship are one and the same. Hence in most cases, only income tax return in Form ITR-3 must be filed every year and also GST Returns.
The proprietor does not have to particularly wind up the company incase he wants to cease operations. This saves a lot of time and effort.
A sole proprietorship does not provide the proprietor with limited liability protection. So the proprietor would be held personally liable in case of any loss or liability.
Any license or registration obtained in the name of the proprietorship cannot be transferred to any other person or entity.
The existence of the sole proprietorship is tied to the proprietor hence it would cease to exist with the proprietor.
A proprietorship cannot raise equity funds from angel investors, venture capital firms or PE funds. Banks also tend to restrictions on the amount of credit they can lend.
Due to the disadvantages mentioned above, this registration will be suitable only for small businesses and the unorganised sector with a limited period of existence.