Register a Sole proprietorship firm in 3 days

Sole proprietorship registration

If you're an aspiring entrepreneur in India looking to start a business on your own, registering as a sole proprietorship firm is a great option. This type of business structure is easy to set up, requires minimal paperwork, and allows you to have complete control over your business. With the ease of online registration, the process has become even more accessible. In this guide, we'll walk you through the simple steps of registering your sole proprietorship firm online in India. From choosing a unique name to obtaining necessary registrations, we've got you covered. Get started on your entrepreneurial journey today with our easy-to-follow guide.

A sole proprietorship is an unregistered form of business entity that is owned, managed and controlled by a single person. Government makes no legal distinction between the person who owns the business and the business itself.

Proprietorship firms are pretty easy to start and it’s the simplest way to operate the business, it is popular amongst micro and small sized businesses in the unorganized sectors. It is ideal for those who intend to carry out business from home.

Though ever since the one person company structure was introduced in India, proprietorship firms are fast losing their relevance due to the numerous advantages offered by OPC (one person company).

As there is no registration required, but to start the business you need to register your proposed company name in any of the listed below in order to open a business current account and start the business transaction.

• TAN registration.
• GST registration.
• Shop act license(for Some states).
• MSME registration.
• IEC Code.

To start a proprietorship firm, you may have a unique name for the proposed company, you can choose any name but make sure it does not infringe on a registered trademark of any other existing company. It is advisable to check the proposed name in the trademark database and if it’s available, you must also register a trademark so that the same name will not be exploited by others.

This company formation is recommended for traders, home business, retailers and self employed.

Features of proprietorship

• The cost of forming a proprietorship firm is low and also the easiest way to start the business, ease of formation is its most important feature because it is not required to go through elaborate legal formalities. No agreement is needed and registration of the firm is also not essential. However, the owner may be required to obtain a license specific to the line of business from the government.
• It is not considered a separate legal entity unlike other forms of company’s structure.
• Proprietor will have unlimited liability in business, it means personal assets are not insulated from the firm liability, assets and property of the proprietor can be liquidated to meet debts of the firm.
• Lack of continuity is the key drawback as the existence of a sole proprietorship business is dependent on the life of the proprietor. Critical illness, retirement and death of the owner brings an end to the business. The continuity of business operations is therefore uncertain.
• Ownership in proprietorship cannot be changed.
• No compliance formalities, annual filing not required.
• No requirement of minimum capital contribution.
• Proprietor pan card is used for tax filing purposes, no separate pan card is issued for proprietorship firms.