Sole Proprietorship Firm

Sole proprietorship can be registered and operated by a single individual who can be a small manufacturer or a trader.

No formal registration is required for sole proprietorship. But one needs to obtain certain licenses and pay income tax at individual tax rates.

  • Select a Name
    The name of the firm should be checked with the trademark registry so that there is no infringement of trademark.
  • Take your Pick
    We will enable you to choose the right government registration for your business.
    For instance, TAN (Tax Deduction and Collection Account Number), a 10 digit  unique number allotted by the Income Tax Department, is needed to comply with the provisions of TDS. 
    Also, MSME - Udyog Aadhar is suitable for proprietorship firms to seek online services offered by ministries & departments of the government.
    As a manufacturer or trader, you are required to get your firm registered under Shops and Establishments Act.
  • Registration Receipt
    Our team support will be with you until you obtain the required registration

simple & transparent pricing

Basic

All inclusive of government fees

₹ 2699/-

  • TAN Registration
  • GST Registration

Economical

All inclusive of government fees

₹4599/-

  • TAN Registration
  • GST Registration
  • MSME Registration

Money Saver

All inclusive of government fees

₹9899/-

  • TAN Registration
  • GST Registration
  • MSME Registration
  • Trademark Application

What does Sole Proprietorship mean?

A sole proprietorship is basically an organisation that is owned and managed by a single individual who controls the entire business. It is one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. A sole proprietorships involving small dealers and merchants is quite easy to start. It has a very minimal regulatory compliance requirement. The proprietor can take all decisions without asking anyone or making any resolution. However, proprietorship has its inadequacies too: the liability of the proprietor is boundless, and it doesn't have a corporate status, separate legal entity, independent existence, or transferability.

There is no formal mechanism for the registration of a sole proprietorship. Therefore, the existence of a proprietorship is determined by way of tax registrations and other business registrations as per the law. For instance, GST Registration can be obtained in the name of the proprietor to establish that the proprietor is operating a business as a sole proprietor. As the owner and the business are treated as one single entity, he/she is personally accountable for all the liabilities of the proprietorship.

Benefits of a Proprietorship

Minimal Compliance

Sole proprietorships enjoy benefits of paying taxes at individual tax rates instead of corporate rates.

Simple and easy to start

A sole proprietorship could take approximately 15 days to start with minimal formalities, all you require is a Shops and Establishments registration certificate and a current business bank account. In any case, PAN card, identity and address proofs are sufficient to complete the procedures.

Lower Tax Liability

Proprietors with less than Rs 3 lakh of income are not required to pay any income tax, as proprietorships are taxed as the individual owing the business. So, it greatly reduces tax formalities as one has to file only one personal income tax return. However, unlike a company or LLP, a proprietorship cannot enjoy some of the tax deductions, which could potentially increase its tax liability.

Easy to wind up

As the proprietorship is owned and operated by a single proprietor, there is no formality for winding up or closing a proprietorship. Mostly, to close a proprietorship, the proprietor needs to get the tax registrations obtained in his/her name cancelled.

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Contact Information

+91 96547 28811

Head Office
Great Solution,126 Hari Nagar, Ashram,
Near Ashirward Hospital, New Delhi 110014
info@greatsolution.in

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