Sole Proprietorship Registration Online

A sole proprietorship company is a business structure owned and managed by a single person. It is a preferred option for small traders and merchants in the unsystematic sector due to its quick incorporation process, which takes only fifteen days. Unlike other business structures, registration is not mandatory for a proprietorship firm, as it can be identified through government registrations like GST. Moreover, it does not have a perpetual existence and has unlimited liability. Therefore, sole proprietorship registration in India is synonymous with one-person company registration.

No formalities or paper registration is required to register a proprietorship company in India. Filing Buddy offers easy online registration for a sole proprietorship firm. This business structure has no legal distinction between the owner and the business, as it is not considered a legal entity. The owner is solely responsible for clearing all debts and loans of the business.

Sole proprietorship registration in India is simple and popular, making it a convenient way to start a business at a nominal cost. Examples of proprietorship businesses include grocery shops, salons, and pharmacies. As per the Income Tax Act, the business's loss or profit is considered the owner's loss or profit, and the income gained is regarded as the owner's income.

Entrepreneurs often choose sole proprietorship as their ideal business entity due to the complete rights and responsibilities it offers. To register as a sole proprietorship, a person must meet basic requirements such as opening a bank account in the entity’s name. The registration process is entirely online and can be completed with the assistance of an expert like FilingBuddy.

In India, registration of sole proprietorships is optional, and there is no platform to determine their status. However, if a proprietor has applied for GST registration, the registration and filing status of the proprietorship can be verified through the GST Portal.

Why should one choose a Sole Proprietorship Company in India?

If you're an entrepreneur in India who wants to start a business and prefers complete control over it, a sole proprietorship firm could be your best business structure. Here are some essential factors to consider when choosing this type of business.

• Flexibility in running business activities.
• The oldest and most accessible type of business structure.
• One-hand control over the business.
• Easy to commence and close the business.
• A hassle-free business entity with very few required compliances.
• You are only the boss of your business, which means you don't need to answer any company member, shareholder, or director.
• Self-accountability for the business.
• One-hand power for decision-making.
• No sharing of business profits or income, which means it's all yours.
• No disputes, discomfort, or conflicts among any members.
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The advantages of a Sole Proprietorship Firm Registration Business include:

• Individual's Investment: To register a sole proprietorship in India, the proposed proprietor's Aadhar card and other identity and address proofs are required.
• Ownership: The owner of a sole proprietorship holds complete control of the business and can transfer ownership through a will or as a last testament.
• Fewer Formalities: Starting a sole proprietorship involves minimal rules, formalities, and regulations before and after registration.
• Control Power: The owner has complete control over the business and does not have to answer to anyone else.
• No Sharing of Profit or Loss: All income and debt belong to the owner and cannot be shared with others.
• Unlimited Liabilities: Personal property of the owner can be used to repay debts incurred by the business, which is a potential drawback of this structure.

• Unlimited liability: A sole proprietor is personally responsible for all business transactions and may face the full extent of any losses incurred from their personal assets.
• Lack of perpetuity: If the sole proprietor passes away, the business may continue, making establishing trust for business expansion agreements easier.
• Difficulty in fundraising: Proprietorship firms need more legal entity status to raise funds. Third-party funding can be difficult to secure since the business may terminate at any time and does not have a separate entity.

• Aadhaar Card
• PAN Card
• Bank Account
• Registered Office proof

• Address and name of the business
• Proprietor PAN Card
• Bank Account in the business's name
• Registration under the relevant state's Shop and Establishment Act
• The business must register for GST if its annual revenue exceeds Rs. 20 lakhs

The following options are available for online registration of a sole proprietorship company in India:

• Registering under the SME registration process
• Registering for GST
• Registering under the Shop and Establishment Act of the relevant state's rules and regulations.

To start a business, individuals must register as an SME (small and medium enterprises) per the MSME Act's provisions. Completing the setup of a sole proprietorship involves submitting an online application, which is compulsory but beneficial for the company. This registration can be utilized to secure loans at a lower interest rate. Additionally, the government has introduced various schemes for improving SMEs registered under the MSME Act.

The Shop and Establishment registration process requires the person to own a shop, which is issued by the municipal authorities based on the company's number of workers or employees.

In India, it is mandatory to obtain a GST registration to conduct any type of business activity, including online business. The process takes around five working days and requires the following documents:

• PAN Card and Aadhar Card of the proprietor
• Passport-size photographs of the proprietor
• Office proof
• Copy of bank statement with the bank account number, branch address, and IFSC code

Heading: Post Compliances

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• The proprietor must file annual Income Tax returns before the due date.
• The proprietor must file GST returns if the business is registered under GST.
• If the sole trader firm is liable for tax audits, the proprietor should deduct TDS (tax deducted at source) from the worker's income and file TDS returns.