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The Proprietorship firm in India are a type of business entity that is owned, controlled, managed by one person. The micro, small and medium enterprise owners prefer to get registered as Proprietorship Firm in India. The proprietor has the responsibility for all assets and liabilities of the Proprietorship Firm.
Any Indian citizen can get a Proprietorship Firm registration, having a current bank account in sole name or name of the business to take the business forward and operate. The Proprietor should apply for GST Registration on the GST Portal, MSME Registration on the Udyam Portal and obtain Shop & Establishment Registration. In case of Proprietorship Firm, the PAN of Proprietor and Firm are the same.
Under the Companies Act, 2013; MCA have introduced One Person Company Registration to give window to solopreneurs to register a Private Limited Company without needing to dilute his/ her shares. It means 100% shareholding will vest with only one person and that is why it is popularly known as One Person Company (OPC).
To be on the safer side, it is advisable to file Trademark Application to save your brand name/ logo. Trademark once registered is valid for 10 years and available for renewal.
Advantages and Disadvantages of Proprietorship Firm Registration
Easy Decision making
Unorganised business category
The below are the documents required for a Proprietorship Firm registration in India to run a business.
In addition to the above, there may be additional registrations and license required depending upon the state, industry and local regulations.
The Proprietorship Firm registration usually takes 2 weeks; however, it would again be dependent on various factors like the processing timelines on part of bank and government procedures.
Registering a Proprietorship Firm Online
To begin with the registration, the PAN and Aadhar of the owner is essential.
GST Registration – The Proprietor must obtain the GST registration through the GST portal where the turnover is more than 20 lakhs and to run an online business and the below documents are required:
Opening a Bank Account – The Bank account should be in the name of business owner using the owner’s PAN and submitting the below:
Shop & Establishment Act – The process to avail the Shop & Establishment Act license for Proprietorship Firm would vary from state to state and is usually obtained within 2–3-week time period.
The following compliances should be adhered as applicable to Proprietorship Firm where the turnover is more than INR 2.5 Lakhs for IT return.
The Proprietor can undertake any business activity depending on the industries and sectors. Though per the law, there are certain listed activities which requires special approval from Government such as insurance, banking functions, lending, telecommunications, defence. It is advisable to seek the advice of a professional consultant or legal expert to understand the compliance requirements and ensure that the business operates in compliance with local laws and regulations.
A Proprietorship Firm is a type of business structure in which an individual owns and manages the business. The proprietor has unlimited liability and is responsible for all debts and obligations of the business.
Registering a Proprietorship Firm in India provides various benefits, such as accessing bank loans and credit, obtaining business licenses and permits, and building credibility and trust with customers and suppliers. It also allows you to operate your business legally and comply with local laws and regulations.
The documents required for Proprietorship Firm Registration in India may vary depending on the state and the nature of the business. Generally, the required documents may include proof of identity and address of the proprietor, proof of address of the business premises, and other relevant documents.
The time required to register a Proprietorship Firm in India may vary depending on the state and the nature of the business. Generally, the process may take 1-2 week to complete, depending on the complexity of the registration process and the requirements of the local authorities.
The licenses and permits required for a Proprietorship Firm may vary depending on the nature of the business and the state where it is registered. Generally, businesses need to obtain licenses and permits from local authorities, such as the municipal corporation, police department, or fire department.
Proprietorship Firms in India must comply with various legal and regulatory requirements, such as tax laws, labour laws, and other relevant laws and regulations. It is advisable to seek the advice of a professional consultant or legal expert to understand the compliance requirements and ensure that the business operates in compliance with local laws and regulations.
Yes, it is possible to convert a Proprietorship Firm into a Company or LLP (Limited Liability Partnership) if required. The conversion process may vary depending on the nature of the business and the requirements of the local authorities.
Yes, it is mandatory to maintain records and books of accounts for a Proprietorship Firm in India, as per the relevant laws and regulations. The records may include financial statements, bills, invoices, receipts, and other relevant documents. It is advisable to seek the advice of a professional consultant or legal expert to ensure that the records are maintained in compliance with local laws and regulations.
Yes, it is possible to have employees in a Proprietorship Firm. The proprietor is responsible for complying with labour laws and regulations, such as minimum wages, working hours, and other relevant provisions.
Yes, it is possible to register a Proprietorship Firm online through the government's e-portal for company registration. The process is simple and requires uploading the relevant documents and paying the registration fees online. However, it is advisable to seek the advice of a professional consultant or legal expert to ensure that the registration process is completed correctly and in compliance with local laws and regulations.
Compliance Calendar have a team of Professionals like Chartered Accountants, Company Secretaries, Lawyers and Finance Professionals who can help you in the complete process of your business registration. You can reach out to us at firstname.lastname@example.org or connect at 9988424211.