Sole Proprietorship
Micro or Small size Manufacturing or Trading entities that are owned and controlled by one person, with typically having just a GST number, are commonly known as sole-proprietorship firms.
Digital Filings can help you in…:
Picking the appropriate government registration
Connecting with verified vendors / partners to submit the application
Supporting you at every step until your business is registered
Get Started!
Understanding Sole Proprietorship
Sole Proprietorship is the most prevalent business model in India, adopted by many micro and small businesses across the nation. This business formation is quite easy to start-off and requires minimal regulatory compliance. Sole-proprietorship mode is the first-choice for small traders and merchants, primarily operating in unorganized sector, because a proprietorship firm can set-up and start operating within 15-days of time. Also, there is no designated mechanism provided by the Government of India for registering sole-proprietorship form of business.
Business entities under the proprietorship model need to be established through certain tax registrations (including GST number, VAT) along with other compliance requirements. All the registrations for a proprietorship business are, however, to be in proprietor’s name, making the owner solely accountable for all business liabilities. Various desirable advantages, including limited liability, perpetual existence, corporate status, and others that are critical for any business, are missing in a sole-proprietorship model.
Key-Advantages of a Proprietorship Firm
Easy to Start & Close
Sole-Proprietorship is the simplest form of business to start, which requires minimal compliance and can be set-up in just 15-days. All you need is GST registration that can be done by your PAN card and address proof (AADHAAR or Voter’s card).
Similarly, a proprietorship firm can easily be wind up or closed. In most cases, only the tax registrations obtained in the proprietor’s name are to be cancelled.
Quite Economical
Sole-Proprietorship is fairly inexpensive as compared to other business modes, like One Person Company (OPC). Also, it requires minimal compliance, so it is economical even in the long-run. Moreover, there is no need to hire an auditor, as proprietorship firms are only recognized through the government and tax registrations, and the extent of their compliance is limited to the annual filing of their services and taxes.
Less Complicated
Unlike company or partnership modes, where more than one person is required to set-up any business, a sole proprietorship can be registered and operated by a single individual. Moreover, a proprietor can select any name for the venture – as long as it does not infringe on a registered trademark. Since the name is not registered, any other person can, however, use the same business name unless trademark registration is obtained.
Required Documentation Chart
Indian Resident
- Copy of PAN Card (mandatory)
Residence Proof
- AADHAAR Card
- Voter’s Card
- Bank Statement
- Electricity / Water Bills (recent two-months)
Proof of Registered Office
- Property Tax Receipt
- Electricity / Water Bills (recent two-months)
Additional Documents:
- Rent Agreement*
- Sales Deed
*Along with the Rent Agreement, a letter of consent by landlord containing a signed agreement to use the rented space as a registered office is also obligatory to be submitted.
Non-Resident Indian / Foreign Resident
- Notarized or Apostilled Copy of Passport (mandatory)
Residence Proof
- Notarized or Apostilled Copy of Passport (mandatory)
Proof of Registered Office
- Property Tax Receipt
- Electricity / Water Bills (recent two-months)
Additional Documents:
- Rent Agreement*
- Sales Deed
*Along with the Rent Agreement, a letter of consent by landlord containing a signed agreement to use the rented space as a registered office is also obligatory to be submitted.
Documents for GST Registeration
For the GST registration, a proprietor needs to submit certain additional documents, including passport size photograph and either a cancelled cheque of personal bank account or bank statement or front page of bank passbook.
What People Frequently Ask…
How many people can start a sole proprietorship business?
Who can start a sole proprietorship business?
What types of businesses generally operate as sole proprietorship?
How will DigitalFilings help me start a Proprietorship?
How can the name of a sole proprietorship be registered?
Can other individuals also invest in a sole proprietorship firm?
Is it mandatory to audit a sole proprietorship business?
Can I later convert my Proprietorship into a Company or LLP?
Yes, a sole proprietorship firm can be transitioned to a Company or a Partnership mode at a later date, however, the procedures are complicated, expensive, and time-taking. Therefore, entrepreneurs should wisely consider starting-off either as a partnership or c company form of business.
Apart from a current account, what all other registrations required for a sole proprietorship firm?
How much capital is required to establish a sole proprietorship firm?
Essentially, there is no minimum limit to the capital for starting a sole proprietorship business.
What all documents are required to register as a sole proprietor?
You would need valid address and identity proofs, PAN card, all Know Your Customer (KYC) documents, and rent agreement. In case of Shops & Establishment Act Registration, you will need a sale deed.
What documents are needed to open a current account for a sole proprietorship firm?
As per the mandates by the Reserve Bank of India (RBI), an individual needs to provide two registration forms, along with the PAN card, identity proof, and address proof to open a bank current account for a sole proprietorship firm. The additionally required two forms of registration can be any of the following: service tax registration, MSME registration, VAT/TIN/CST registration, Shop & Establishment Act registration, Professional license, Chartered Accountant certificate, or others as specified in the RBI’s KYC norms.
Does sole proprietorship firm have a separate legal identity?
Does my sole proprietorship firm have a Certificate of Registration?
How long does it take to establish a sole proprietorship business?
Can a sole proprietorship firm be transferred to another individual?
What are the annual compliance requirements for a sole proprietorship business?
Can the registrations relevant to a sole proprietorship firm be submitted online?
Pocket-Friendly Options
Basic
Package Include:
TAN Registration- MSME under Udyog Aadhaar and Compliance Tracking.
- (Above price includes all taxes and relevant government fees.)
Standard
Package Include:
- TAN and GST Registrations with Three Months GST Return Filing MSME under Udyog Aadhaar and Compliance Tracking (Above price includes all taxes and relevant government fees.)
Premium
Package Include:
- TAN and GST Registrations with 12 Months GST Return Filing or Trademark Filing MSME under Udyog Aadhaar and Compliance Tracking (Above price includes all taxes and relevant government fees.)
How we Do It…
Partners at Digital Filings are capable of getting your sole proprietorship firm registered maximum in 3 to 5 business days. Our commitment is, however, purely rely on the time coordination from relevant authorities and clients.
First thing First
Before kicking-off with the registration process for your sole proprietorship firm, expert business consultants at Digital Filings will first seek to well-understand your venture. We will not just help you establish an identity for your firm, but will also help you decide what registration your business actually requires. Additionally, we will guide you with the relevant registration documents for smooth processing.
Let us Begin
To establish an identity for your sole proprietorship firm, professionals at Digital Filings will assess and obtain the appropriate tax registration (VAT / TAN / GST) based on the form your business. We will connect you to an experienced and verified vendor partner who will not just file your application but will also keep you updated with the further developments.
Finally its Done
Once the filing work is done and application is submitted, Digital Filings will provide full support until your sole proprietorship firm is registered as you desired. This generally takes 3 to 5 days in most of the cases, however, can stretch to a maximum of 10 to 15 days in certain cases, primarily due to the workload of authorities and other uncertainties.
Our Patrons’ Speak
“Heartfelt thank you for proficiently taking care of all the registration related tasks and letting me focus on my business operation without any stress.”
– Srinivasan
“Highly impressed by the personal attention of the professional staff in getting the GST registration done and arranging the MSME certification for my business.”
– Hari
“Thank you Digital Filings for all your professional and timely support in getting my company registered.”
– Sachin Gupta
“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”
– Pawan
“Thank you for simplifying the so complicated filing and documentation and getting my business smoothly registered.”
– Amit
“Heartfelt thank you for proficiently taking care of all the registration related tasks and letting me focus on my business operation without any stress.”
– Srinivasan
“Highly impressed by the personal attention of the professional staff in getting the GST registration done and arranging the MSME certification for my business.”
– Hari
“Thank you Digital Filings for all your professional and timely support in getting my company registered.”
– Sachin Gupta
“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”
– Pawan
“Thank you for simplifying the so complicated filing and documentation and getting my business smoothly registered.”
– Amit
Mission Statement
Every Partner at Digital Filings is Focused...
...to Provide a Comprehensive Legal Assistance Mechanism...
...Diligently Customized for Emerging Entrepreneurs!
We at a Glance...
Digital Filings is a leading business and legal services provider in India, assisting entrepreneurs in effectively and economically setting-up and managing their venture. Digital Filings consistently ensures that your venture is always compliant, so you can efficiently focus on making your business ascend.
Our strong network of proficient partners thoroughly understands the business specific regulatory/legal requirements and is focused to assist business owners at every stage of their venture.
Our panel of competent professionals, including Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Financial Gurus, and Business Experts are just a call away to gladly serve you.
Book your appointment Today!
Media Talks
Knowledge Arena
Be our guest to browse the Knowledge Arena by Digital Filings and widen your knowledge-base.
Digital Filings always strive to enhance the understanding of our patrons on the Nation's consistently modifying compliance environment. Our well-informed team of partners has diligently compiled numerous articles, guides, videos, and much more that you can browse anytime at your ease.
Why DigitalFilings
Easy Registration
Experts at Digital Filings can proficiently help in registering your sole proprietorship firm, either by getting you a GST / VAT Number, Service / Professional Tax Registration, a Shops & Establishments Act Registration, a Micro, Small & Medium Enterprises (MSME) Registration, or an Import-Export Code.
Supportive Team
The team of well-informed professionals at Digital Filings is just a phone call away to address every concern / query about the registration of your sole proprietorship venture. We will, however, put our best to make sure that all your questions are well-answered even before they strike in your mind.
Expert Support
Experts at Digital Filings precisely understand all of your requirements and strive to ensure that all the desired documents are in place so that you can effectively align yourself with every legal / administrative interaction. We will also provide you complete clarity on the process to set genuine expectations.