38, SHIVPRAKASH APARTMENT, Jaitala Rd, Parsodi, SUMIT NAGAR, Nagpur, Maharashtra 440022
A sole proprietorship is a business that is owned and managed by a single person. Sole proprietorship’s are one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating. However, after the startup phase, proprietorship’s do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence – which are desirable features for any business. Therefore, proprietorship registration is suited only for unorganised, small businesses that will remain small and/or have a limited period of existence. There is no such thing as registration; proprietorships are recognised by other registrations, such as VAT or Service Tax or GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.
The Sole Proprietorship registration process is completely online thus to get your entity registered you don’t even need to leave your home. At HerambIndia, we are continuously available to help you understand how to register a sole proprietorship. Proprietorship Registration in India can be done through HerambIndia in all major cities, including Mumbai, and New Delhi, Chennai, Kolkata, Hyderabad, Bangalore & all other Indian cities.
You are required to give some information for Proprietorship Registration and email documents.
On placing order, your application is assigned to one of our dedicated professional.
Our team will file your Sole Proprietorship Registration Application online.
Once your Sole Proprietorship registration is completed we will send Certificate and other relevant documents by courier.
A Sole Proprietorship is inexpensive as compared to a One Person Company (OPC) and, thanks to the minimal compliance requirements, is inexpensive even over the long-term. You would not need to hire an auditor, for example. This is why, despite its severe shortcoming (unlimited liability), small merchants and traders opt for it.
Proprietorship needs minimal registration. Therefore, it is one of the easiest form of business entity to start with minimal formalities. However, after starting up a Proprietorship, it is relatively harder to open a bank account or obtain a payment gateway in the name of the business – since more registrations like VAT or Service Tax or GST Registration may be required.
Since the name of a proprietorship is not registered, a proprietorship can choose to have any name – as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.
All entities having service tax or VAT or central excise registration must be registered under GST mandatorily. Existing taxpayers have been provided with Provisional ID and password for completion of GST migration formalities and generation of GSTIN by the respective tax departments.
The Proprietor and the proprietorship are one and the same for all legal purposes. Hence, there is no formality for winding up or closing a proprietorship. In most cases, to close a proprietorship, only the tax registrations obtained in the name of the proprietor must be cancelled.
Sole Proprietorship registration process completed in 7-8 days