Home All Services Sub Services

Apply now

₹999

Contact us

Get Started

Setting up of a Proprietorship Firm

 

A sole proprietorship (also known as individual entrepreneurship, sole trader, or simply proprietorship) is a type of unincorporated entity that is owned and operated by a single Individual. It is considered the simplest as well as the most common form of business entity.

 

Features of Sole Proprietorship:

  • Ownership: A sole proprietorship is owned and operated by a single individual.
  • Legal Status: It is an unincorporated business entity - the owner and the business are considered the same in the eyes of the law.
  • Liability: The owner is personally liable for all debts, liabilities, and obligations.
  • Profit Retention: The owner retains all the profits generated by the business.
  • Ease of Formation: Easy to set up, and requires fewer legal formalities.

A. Documents Required for a Sole Proprietorship

  1. Aadhar Card
  2. PAN Card
  3. Bank Account Details
  4. Registered Office Proof

                               – (Of the Proprietor)

B. Registrations Required for a Sole Proprietorship

The specific registrations vary according to the nature of business as well as the relevant laws & regulations applicable.

  1. MSME/Udyog Aadhar Registration
  2. Shop and Establishment Registration
  3. Goods & Services Tax (GST) Registration

How we work?

01

Chose a Plan

02

Get estimate and Make Advance Payment

03

Upload the documents

04

Get your services done

Unlocking Financial Success Together: The Forum for Chartered Accountants

Forum

Advantage:

  • Easy Formation: Compared to other business types, establishing a sole proprietorship is comparatively easy and necessitates fewer legal requirements. It often has low initial costs and minimal paperwork requirements.
  • Full Control: As the business's sole proprietor, you have complete control over each component of it, which means quicker decision making.
  • Retention of Profits: You are entitled to all business profits. There exists no need to distribute profits to shareholders or partners. This makes it possible for increased cash gains and personal financial development.
  • Flexibility: In terms of business operations - with freedom as to setting your own work schedule, and have proper objectives.
  • Privacy: Compared to other company structures, sole proprietorships typically offer a greater level of privacy.
  • Tax Advantages: Sole proprietorships can offer several tax advantages. Business income is treated as personal income - so, we only need to file a personal income tax return.


Get Started

We'd love to hear from you

Enquiry Us

Documents:

Documents Required For A Sole Proprietorship Sales department manager (01 person)



Get Started

FAQs:

A: No, a proprietorship firm cannot be incorporated as it is not a separate legal entity. The proprietor and the business are considered as one and the same.

A: The advantages of a proprietorship firm include ease of formation, minimal compliance requirements, complete control over business operations, and flexible decision-making.

A: The disadvantages of a proprietorship firm include unlimited liability of the proprietor, limited capital raising potential, and lack of continuity in case of the proprietor's death or incapacitation.

A: Registration of a proprietorship firm is not mandatory. However, for opening a bank account in the name of the firm, obtaining a GST registration, or other business licenses, registration may be required.

A: There is no legal requirement to file annual returns for a proprietorship firm. However, if the firm is registered for GST, then it has to file GST returns as per the GST laws.

A: The income of a proprietorship firm is taxed as per the individual income tax slab rates applicable to the proprietor. The proprietor is required to file a personal income tax return for the income earned by the firm.

A: To close a proprietorship firm, the proprietor has to settle all the dues and liabilities of the firm, cancel all the licenses and registrations, and file the necessary documents with the concerned authorities.

Apply now