Proprietorship Firm Registration

Company Registration in Mumbai, GST Registration in Mumbai, GST Filing, LLP Registration in Navi Mumbai, Partnership Firm Registration in Andheri, Private Limited Company Registration in Bandra, Tax Baniya

Proprietorship firms are considered individuals owning businesses.

Proprietorship refers to a business where there is no distinction between the owner and the business entity.

A sole proprietor is also known as a sole trader, individual entrepreneur, and various other names. Hence there are some benefits of having a proprietorship firm too.

Proprietorship is a single-person establishment or one-person firm wherein an individual owns, manages, controls, implements, and executes his/her business on their own.

As it is not majorly governed by any law, so it becomes the easiest form of doing business in India. It is not mandatory to register as a sole proprietorship but to gain tax benefits people do register their firm as a sole proprietorship.

The profit and losses of an organization, both are shared by only one person owning the firm or business.

Tax Baniya will help you in all your requirements regarding the registration of Proprietorship Firm and other formalities. Our Business advisors will give solutions to all your queries regarding Proprietorship Firm Incorporation and help you to take your decisions easily.

Tax Baniya started with the simple idea that doing business in India should be very easy. Our growing team of young hard working professionals is our biggest asset. Our team puts the consumer first, and work meticulously to ensure that documents are filled correctly and swiftly.

Tax Baniya is leading Company / Business Registration Service Provider and acts as a Consultant in Mumbai, Navi Mumbai, Thane, Palghar 

Simple Pricing With Deliverables

If GST Registration is Required

Confirm with Banker 2nd acceptable documents except GST
₹3,499
  • Time Line : 7 – 10 Days
  • We will take GST Registration + Udyam Registration

If GST Registration Not Required

Confirm with Banker First for 2 accepted documents except GST
₹1,999
  • Time Line : 2 – 5 Days
  • We will take any of 2 Registration as mentioned below

Registration Process

For Proprietorship Firm

There is no mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations and open Current account. All banks have their own list of documents and generally accepted documents are:

  • Goods & Service Tax (GST) Registration (Normally all bank accept this). Once you taken you have to charge the GST and file the GST return on monthly basis.
  • Professional Tax Registration (Limited bank accept this so need to confirm with your banker first. Once you taken the number you have to pay Rs. 2,500/- per year.
  • Shop and Establishment intimation letter (Limited bank accept this so need to confirm with your banker first) for less than 10 employees and certificate (Normally all bank accept this) for more than 10 employees
  • Udyog Aadhar (Limited bank accept this so need to confirm with your banker first)
  • CA Certificate (Limited bank accept this so need to confirm with your banker first)

Documents & Information Required

For Registration of Porprietorship Firm

For all the types of registrations which are recommended for the sole proprietorship firms, the following general documents are required for most of them. There can be some exceptions for specific types of registrations. The owners are advised to check the official website of the government body issuing that registration to make sure to have all the documents required for the same.

These are the documents which are necessary for registering as sole proprietorship firm. These are the essential documents and it is recommended to check the official website for any updates and changes in the same. Once these documents are sorted, sole proprietorship firm registration goes very smooth and hassle-free.

Individual Details

  • Name of Proprietor
  • Address of Proprietor
  • Mobile Number of Proprietor
  • Photos of Proprietor
  • PAN Card of Proprietor
  • Aadhaar Card of Proprietor
  • Bank Account of Proprietor

Features

of Proprietorship Firm

Less Expensive

Economical and less expensive: Can be started with even less capital

Smooth Start

There is no elaborate registration process for the establishment of proprietorship firms. A proprietorship firm uses the owner’s legal identity. Due to this provision, there is no need to register the firm separately until it is necessary. This smooth registration process makes it easier for the owners to register their firms, which is beneficial.

Undivided Profits

In proprietorship firms, there are no firm rules for the money earned by the business since there is only one owner of the company. The owner is the only person to accumulate the profits and further invest it in the market and other ventures. Sole ownership gets rid of the benefit related conflicts in the firm. Money comes in to facilitate and maintain the processes in the firm.

Taxation

Any sole proprietor is not entitled to pay income tax if the profits of the company are less than Rs. 2.5 lakh per year. This is a significant benefit for the firm to start small and save on taxes. However, it is essential to note that the firm has to pay income taxes once the profits exceed Rs. 2.5 lakh per annum.

F.A.Qs

on Proprietorship Firm

Any individual who plans to start his/her own business or company with less or more investment can register for a sole proprietorship. The owner will be solely responsible for managing and running the business and shall share the profit and losses by himself/herself. The control, decision making and execution will be in the hands of the sole proprietor.

No, a rented office can also be used for the registration. You need to have the rental agreement and a NOC from the landlord for the registration application.

Only one, as the name defines sole proprietorship means there is only one person owning and managing the company.

Yes, you can do this but it requires lengthy paperwork and formalities.

You may need to open a current account in the name of your firm and further you can start your firm.

No, you can register for a proprietorship firm from your personal bank account.

Your proprietorship can be transferred by selling its tangible and intangible goods, products and services to a new owner. The proprietorship cannot be sold but only the goods and products can be to another owner.