What is Sole Proprietorship ?

A sole proprietorship is a type of business structure where a single individual owns and operates the business with no any other partners. It's the simplest form of business entity and is common among small businesses and solo entrepreneurs because it's easy to set up and has minimal regulatory requirements, the business that can be owned and controlled by an individual.

A sole proprietorship is a business owned and operated by one individual. It's simple to set up and manage, but the owner has unlimited liability for business debts. It is also referred to as a sole trader or a proprietorship.

Benefits

  • Simple Setup and Management : Easy to establish and operate with minimal regulatory requirements.
  • Complete Control : The owner has full control over business decisions and operations.
  • Tax Advantages : Potential tax benefits as business income is treated as personal income of the proprietor.
  • Low Cost : Lower cost of formation and compliance compared to other business structures.

Process

01

Consultation

Discussing business needs and advising on the suitability of a Sole Proprietorship.

02

Documentation

Collecting and preparing necessary documents for registration.

03

Local Authority Registration

Registering the business under the Shop and Establishment Act and obtaining other local licenses.

04

Tax Registrations

Applying for PAN, GST registration, and TAN if required.

05

MSME Registration

Registering under MSME to avail benefits for small businesses.

Documents Required

  • Aadhar Card
  • PAN Card
  • Bank Account
  • Address Proof of the Proprietor
Registered Office Proof:
  • Rental Agreement/Lease Deed if the business premises are rented
  • Property documents if the business premises are owned
  • Utility Bill (electricity, water, gas, or telephone) not older than 2 months

Our Support?

Initial Consultation and Guidance
  • Business Structure Advice: Assessing the suitability of a Sole Proprietorship structure based on the nature and size of the business.
  • Legal and Compliance Requirements: Providing information on legal obligations, compliance requirements, and potential tax benefits.
Business Name Registration
  • Name Selection: Assisting in choosing a unique and appropriate business name.
  • Trade Name Registration: Helping with the registration of the trade name if required by the state laws.
Documentation Preparation
  • Identity Proof: Collecting identity proof such as PAN card and Aadhaar card of the proprietor.
  • Address Proof: Gathering address proof like utility bills, rent agreement, or property documents of the proprietor’s business address.
  • Photographs: Passport-sized photographs of the proprietor.
Registration with Local Authorities
  • Shop and Establishment Act Registration : Assisting in obtaining the Shop and Establishment Act license from the local municipal corporation.
  • Professional Tax Registration : Helping with the registration for professional tax if applicable in the state.
Tax Registrations
  • PAN Application: Ensuring the proprietor has a PAN card.
  • GST Registration: Assisting in obtaining GST registration if the business’s turnover exceeds the prescribed limit or if the business is involved in inter-state supply of goods/services.
  • TAN Application: Helping in obtaining TAN for businesses required to deduct tax at source (TDS).
Other Necessary Registrations
  • MSME Registration : Assisting with the registration under the Micro, Small, and Medium Enterprises (MSME) Development Act to avail benefits provided by the government.
  • Trade License : Helping in obtaining trade licenses from local municipal authorities if required.
Bank Account Opening
  • Business Bank Account : Guiding on opening a bank account in the name of the proprietorship to handle business transactions.

Frequently Asked Questions

Yes, registration with local authorities under the Shop and Establishment Act is typically required. Additional registrations such as GST and MSME may be necessary depending on the nature and scale of the business.

The Shop and Establishment Act registration is a mandatory license from the local municipal corporation for businesses operating in commercial establishments. It governs the working conditions and ensures the business complies with local labor laws.

GST registration is mandatory if the business turnover exceeds the prescribed limit or if the business is involved in the inter-state supply of goods or services.

The registration process duration can vary, but with proper documentation and assistance from professionals like SS Auditors, it can typically be completed within a few days to a few weeks.