Sole Proprietorship

Sole proprietorships have several advantages over other forms of business structures such as like they are easy to form, and the owners enjoy sole control of the business and its profits. The biggest disadvantage is that the owner is personally liable for all business losses and liabilities.

Sole Proprietorship Firm Registration

Our Sole Proprietorship incorporation packages start from ₹5,549/- all-inclusive

What is a Sole Proprietorship?

A sole proprietorship firm is a type of business entity that is owned, controlled and managed by an individual person. A sole proprietor has complete control and decision-making power over the business.
Sole proprietorship businesses typically require less paperwork and are easier to maintain than partnerships or corporations. The business owner is responsible for the debts and liabilities, and the accounting and record keeping methods are usually simple and straightforward. In simple words, sole proprietorship is one man business organisation.

Table Of Contents

An Overview

The Indian government has not established any separate rules and regulations for a sole proprietorship, and there is no registration process. The registration of the business can therefore only be identified on the basis of the tax registration required in the company. These tax registrations may include a GST registration and / or an SSI / MSME registration that must be obtained on behalf of the owner to determine that the owner runs the company as a sole proprietorship. It’s a good option for those who want to provide a platform to their business idea and try out something they want to do with minimal investment.

Advantages

Disadvantages

Checklist

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Sole Proprietor must be a Indian Citizen

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Sole Proprietor must be a Resident of India.

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Sole proprietor has to be a natural person

Steps to Incorporate a Sole Proprietorship

Step 1: Choose a name for the business.

Step 2: Open a bank account in the name of the business.

There is no formal registration required, but can be obtained through either the following ways:

Register as a Small and Medium Enterprise (SME) under MSME Act,or

– Register under GST Act, or

– Register under Shop and Establishment Act.

ICI Sole Propritorship

Requisite Documents

Compliance required by Sole Proprietorship

How can we help?

FAQs

a. Who can start a Sole Proprietorship?

Every Indian citizen can have sole proprietorship.

b. What type of businesses are commonly run as Sole Proprietorship?

From your grocery store to retailers and manufacturers, many local businesses are solely owned.

c. Is the registration online or I have to submit any documents to the government office?

All registrations are completely paperless and online. We also provide all services online so that you don't need to travel from your office or home.

d. Which documents are needed for opening a current account in the name of my Sole Proprietorship?

Proof of the existence of your company is required to open a checking account. Most banks will apply for MSME registration and / or GST registration. You will also need a PAN card, an address and proof of identity.

e. What if I want to switch from a sole proprietorship to a limited liability company or a limited liability company?

You can always choose to do so. The procedure is very simple. It is common for sole proprietors to convert into partnerships and private limited companies at a later stage.

f. How long does it take to found a company as a sole trader?

A Sole Proprietorship business takes less than 12 days to set-up and start functioning. This simplicity makes it popular among small traders and merchants. It is also much cheaper. This is the reason why it's the most widely used business structure.

g. Still Confused?

Speak to our experts who shall solve all your doubts.
Call us at  +91 7738 066 334  or Mail us at info@indiacompanyincorporation.com

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