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A sole proprietorship is a popular type of business in India as well as in foreign countries. It can be called a one-man show with a single person owning, managing, and controlling an entire business. In India, sole proprietorships are the simplest, easiest, and oldest form of organizations carrying out small businesses in the unorganized sectors.
The best part about proprietorship firm is that to start a proprietorship business we do not require any registration. This makes it easy for you to start, with hardly any formalities. MSME (Udyog Aadhaar) or GST Registration are required to open a bank account or a payment gateway in the name of your business. Since, there is no legal entity, the proprietor’s PAN is used as the basis of all registrations and compliances.
At MyEfilings we provide the most reasonable and efficient services for Sole Proprietorship Company Registration in India.
Starting a proprietorship firm requires very few legal formalities. This makes it easy for you to establish one with just a little effort compared to the rewards it can get you.
As a proprietor you can select any name as the name of a proprietorship is not registered. However, the name should not breach the registered trademark.
Being recognized by the government and tax registrations, a sole proprietorship has minimum compliance requirements. The mandatory compliances are confined to the yearly filing of GST returns, annual income tax & professional tax return.
If you are the owner of a sole proprietorship, a separate business tax return filing is not required. Rather you will have the business data and numbers charted in individual return. Your business will not be taxed at corporate tax rates. Instead, it will be taxed at personal income tax rates. You can enjoy the benefits of all the deductions that an individual taxpayer enjoys under income tax.
If you are a sole trader, you have the freedom to make quick decisions in all business operations without having to depend on anyone else. You are at liberty to implement your ideas and decisions immediately without anyone’s approval.
As a sole trader only you have access to all your business secrets that are at the root of your success. Thus, you can ensure maximum business confidentiality.
From our packages, you can select your desired plan and fill an inquiry form for the same.
Once we collect your documents, we will verify them for the proprietorship registration.
After verifying your documents we will be further submitting them to the concerned authority for consent.
You can start your business operations immediately after you receive the required approval.
You can use any amount of minimum capital to start a proprietorship since there is no fixed limit to the minimum capital required to start a proprietorship.
In the case of a proprietorship, every year you do not have to conduct a statutory audit. But based on your turnover and other factors, you may need a tax audit.
Yes, a proprietorship can be converted into a company or an LLP by following certain procedures. But converting a proprietorship business into a company or an LLP involves a lengthy procedure that can be expensive and time-consuming. So it is always advisable for an entrepreneur to consider the options of starting an LLP or a company rather than a proprietorship.
You can run any kind of local business, starting from a grocery store to being a fast-food vendor, as a sole proprietorship. You can even run a sole proprietorship if you are a small trader or manufacturer.
You cannot transfer your proprietorship operated business to another person as in the case of a private company or a limited liability through the sale. Also, you cannot transfer intangible assets like registration, government approvals, etc. to anyone.
In India, a sole proprietorship company is not a separate legal body from its owner. So it has no separate act governing it.
A proprietorship concern has very little compliance to follow.
a. Every year you have to file your income tax return with the Income Tax authority
b. File your GST return depending on the size and nature of your business
Since a proprietorship concern is owned, controlled, and managed by a single person, you do not have the option of adding partners to your proprietorship concern.
In case of proprietorship concern, the proprietor’s PAN card and that of the Proprietorship are the same. So your firm has no separate legal identity. Also, when it comes to the assets and liabilities, it is the same for the proprietor and the proprietorship.