Proprietorship Registration

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.

Our Packages

Service Tax Registration

3000

Service Tax Registration of Proprietorship Concern

Import Export
Code

5000

IEC Code for Proprietorship Concerns

Delhi Sales Tax VAT Registration

5000

DVAT Registration for Sole Proprietorship Concerns

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Documents Required for Proprietorship Registration

  • 1     PAN card of Applicant
  • 2     Address Proof of Applicant (Voter ID, Passport, Aadhar, Driving License)
  • 3     Cancelled Cheque of Bank Account
  • 4     Registered Office Address Proof Electricity Bill along with • Rent Agreement plus NOC (if Rented) • Ownership proof (if Owned)
  • 5     Four photographs of Applicant
  • 6     Rubber Stamp
Process Involved 20%

Documentation

Startup Consultation

Service Tax Registration

Vat Registration

Import Export Code

Bank Account

STEP 1

Please provide us the required documents to initiate the process

STEP 2

Proprietorships do not have a process of incorporation. Therefore, our Business Advisors will advice you on the way the identity of the Proprietorsihp business can be established through other Government registrations.

STEP 3

The identity of a Proprietorship can be established through Service Tax Registration (if applicable) mentioning the business name. Service tax registration takes 2 to 3 days, subject to Government processing time.

STEP 4

The identity of a Proprietorship can be established through VAT Registration (if applicable) mentioning the business name. VAT registration takes 5 to 10 days, subject to Government processing time.

STEP 5

The identity of a Proprietorship can be established through IEC Registration (if applicable) mentioning the business name. IEC Registration takes 3 to 5 days, subject to Government processing time.

STEP 6

We will help you in opening a Current Account in your choice of bank after the registration

MEANING OF SOLE PROPRIETORSHIP

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.

REGISTRATION

Since the proprietorship is itself not distinguishable from its owner hence there is no registration or approval is required to start a proprietorship business.

Registrations required as per other statute:-

  • Registration under Shops and Establishment Act: This is state specific requirement, in some states it is mandatory and in some it is optional, for example in the Delhi NCT it is optional.
  • Local Municipality Registration: This kinds of registration is mandated by some of the municipalities and applies to the firms operating in the territorial jurisdiction of the municipality.
  • Sales Tax (VAT) Registration: This is a tax on sale of goods within the state which is governed by the respective vat act of the state.
  • Central Sales Tax Registration : This is a tax on Sale of goods between the states, which is governed by the central sales tax act
  • Service Tax Registration: This is a tax on the services provided by the proprietor apart from the negative list of service.
  • Import Export Code: This is also known as IEC, and is pre-requisite before the proprietorship ventures in to any import or export
  • Trade Mark Registration : Brand Name, Logo, Slogan, Label etc.; are intellectual properties which acquires value over a period of time and it is advisable to protect them under as trade mark
  • Provident Fund Registration: The moment number of employees exceeds 20 the proprietor is required to get itself registered with the regional office of the Provident Funds Organization. The contribution rate is 12% each from employee as well as employer
  • Employee State Insurance Corporation (ESIC) Registration: Every organization including the proprietorship concerns employing more than 10 employees having salary more than 15000/- is required to get themselves registered with the concerned Regional office of the ESIC, the contribution to the ESIC is 6.5% wherein 4.75% is contributed by the employer and 1.75% is to be contributed by the employee
  • Other Need Based Registration: The firm may be required to get themselves registered into various other departments like excise, customs, SSI etc.

FAQ

Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter..
1. PAN 2. Address Proof ( Voter ID, Passport, DL or Aadhar) 3. Electricity bill + Rent agreement where you want to run your business..
Mycorporation has tied up with various banks. We will guide you through the process and help you open a bank account..
Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the various Government authorities..
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Proprietorship firm..
Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filign= may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies..
MyCorporation will understand your business requirements and help you start a Proprietorship by obtaining the relevant registrations. We will help obtain the necessary registrations to help the Proprietor open a bank account in the name of the business, thereby proving an identity for the business..

 

You need to be a Citizen and Resident of India having PAN Card and Valid Address Proof ( Voter ID, Passport , Driving License or Aadhar).
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital..
No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business and There will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same..
A business operated by proprietorship firm cannot be transferred to another person, Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person because PAN can not be changed.
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors..
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion..
Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP expensive and time-consuming, PAN and all Relevant registration will be applied again and hence it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship..