What is a Proprietorship?
- Lowest Minimum Compliance.
- Easy to Start.
- Complete control.
- Cheaper compared to other options.
- Lower Taxes.
- Easy Exit.
What You Will Get?
- Registration certificate-MSME
- Shop Act- Maharashtra state
- Guidance on GST, Trademark license etc
What We Need?
- PAN Card (Mandatory)
- Aadhar Card (Mandatory)
- Bank statement/electricity bill/Mobile bill
- Electricity bill of the proposed registered address and the NOC from the owner
Ways to start Register Sole Proprietorship business?
There is as no prescribed for Sole Proprietorship business registration in India. So, for registering sole proprietorship business one must get tax registrations and business registrations. However, there are normally 3 ways we suggest for Proprietorship business registration.
- Register under Shop & Establishment Act
- Get Udyog Aadhar under Ministry of MSME
- Get GST registration
Compare Other Options
|Headings||Sole Proprietorship||Partnership||Private Company||LLP|
|Governing Law||Shop & Establishment Act||Partnership Act, 1932||Companies Act||Limited Liability Partnership Act, 2008|
|Separate Legal Existence||Doesn’t have Separate Legal Existence||Doesn’t have Separate Legal Existence||Has Separate Legal Existence||Has Separate Legal Existence|
|Liability of owner||Always unlimited||Always unlimited||Limited if company is limited by shares or guarantee||Always limited|
|Classification||No such classification||No such classification||Limited by shares, limited by guarantee, unlimited||No such classification|
|Agreement||Not required||Yes. Required.||Not required||Yes. Required.|
|Taxation||Income of the proprietorship is treated as the income of the proprietor and taxed accordingly.||30%||25% for some companies||30%|
|Number of persons||Minimum one||Minimum 2
|Minimum 2 partners|
|Designated partners||—||—||Minimum 1
|Minimum 2 designated partners|
|Name||—||—||suffix Private limited or Private company||suffix LLP|
|Capital||In form of cash and infrastructure only||Share Capital||Share capital||Contribution by Partners|
Timeline for the Sole Proprietorship Firm Registration
- MSME + CA Certification for bank opening (if needed) | 1-2 days
- GST Registration | 7 days