Register a Sole Proprietorship in
3 simple steps, you get
- Shops and Establishment registration certificate
- TAN
- Document Proof
- On-time Registration
- Convenient
Register your Proprietorship today!
Introduction
Sole Proprietorship registration in India is ideal for single-owner businesses. Owners of sole proprietorships manage profits and handle income tax obligations either under their own names or a chosen trade name. Sole Proprietorship registration is frequently chosen by small businesses and individual entrepreneurs.
In case of Sole Proprietorship, the business is owned and governed by one person only. The registration process in this type of business can be completed within seven days. It is one of the oldest and most popular type of business to begin with. There is no limited liability protection for the proprietor concerning the business activities. As a result, this business entity is particularly well-suited for small businesses. Although, the registration is not required for the sole proprietorship as it is identified through GST registration.
Bright Accounts can support you in registering a Proprietorship Firm, a straightforward and efficient business structure perfectly suited for solo entrepreneurs with a streamlined process designed to simplify the setup. Start your Sole Proprietorship with Bright Accounts and unleash the full potential of your business idea.
Documents Checklist
Bright Accounts has compiled a detailed list of documents that are required to register a Sole Proprietorship. Speak to our experts for any queries.
Identity Proof
- Document Proof of Partners
- Notarized Documents (for Foreign Nationals)
- Utility Bill or Bank Statement
Address Proof
- Utility Bill or Bank Statement
Proof of Registered Office
- Ownership of Property- Any utility bill like an electricity bill or corporation tax receipt not later than 30 days.
- Right to use the Property - Rental Agreement or No Objection Certificate (NOC) from the owner.
Other Documents
- Passport Size Photographs
process
Registration Process
in 3 Simple Steps
At Bright Accounts, we have simplified the entire registration process of a Sole Proprietorship into 3 simple steps. This makes your journey smooth, structured and easy.
- Pre-application
- We collect basic information
- Gather required documents
- Check availability of name
- Apply for PAN/TAN
- Drafting & Application
- File Application for Registration
- File Application for GST Registration
- File Application for Shops and Establishment Act
- File Application for MSME Registration
- Payment of Fees
- Approval
- Obtain Registration Certificate
Following the successful verification of documents, Bright Accounts ensures a seamless process for the issuance of Certificate of Registration from the Ministry of Corporate Affairs (MCA). The COI includes essential details such as the Company Identification Number, PAN and TAN.
benefits
What's Good
about a Sole Proprietorship
Cost-Effectiveness
As a sole trader, you can abstain from the costs linked to more complex business structures. This often translates to lower accounting and legal expenses. By minimizing these initial costs, you gain a financial advantage and can allocate your resources more efficiently in the early stages of your business journey.
Simplified Taxation
Sole proprietorship firms are taxed as individual taxpayers since profits from the business go directly to you.This means that the owner can deduct allowed business expenses and losses from their personal income tax return. This practice is called “pass-through” taxing. This special tax status eliminates double taxation, i.e., your proprietorship income isn’t taxes again as corporate income.
Minimal Compliance
Since most proprietorships are registered only with government departments like Income Tax & GST, the compliance burden tends to be lower. In contrast, entities like LLP or Company, which are registered with the Ministry of Corporate Affairs, have to file various statutory returns and undergo annual audits conducted by a Chartered Accountant, increasing their compliance obligations.They are exempt from maintaining formal records or conducting annual meetings, contributing to their simplicity as a business structure.
Easy Setup
Setting up and operating a sole proprietorship firm is a straightforward and simple process. This business structure is known for its simplicity,making it a preferred choice among small business owners.
Be in Control of the business
In a sole proprietorship, the business is solely owned by the proprietor. This ownership structure grants the proprietor complete control over assets, revenue, expenses, and all aspects of business operations. This autonomy allows them the freedom to make decisions without any interference from external parties.
Confidentiality
Financial and operational information remains private, as sole proprietors are not required to disclose business details publicly. Per
What do you get
when you register with our help
Ready to Register your Company?
When you register your business with the help of Bright Accounts, you not only get the items mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Name Approval & Registration
- PAN/TAN
- Shops and Establishment registration certificate
- Certification of Registration
- Expert advice you can count on
- Our bright support on every thing needed to complete the registration.
testimonials
What our clients say
Why Bright Accounts
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Accounts delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Accounts commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
Checklist for Registration
This checklist includes everything that you would need to open a Sole Proprietorship These are mandatory requirements.
- Name of the Sole Proprietorship, which is not similar to any existing Sole Proprietorship or trademark.
- PAN/TAN
- GST Registration
- Shops and Establishment registration
Confused between Sole Proprietorship or OPC? Speak with an expert.
Frequently Asked Questions
A sole proprietorship is owned and managed by a single individual. It does not require a partnership or multiple owners.
You can verify tAny Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.he registration status of your company through the MCA website. To do this, visit the MCA website, then navigate to the “MCA Services” section and choose “View Company/LLP Master Data” from the provided options. Type your company’s Corporate Identification Number (CIN) and click “Submit.” Your company status will be displayed.
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewellery shops are sole proprietors, but it is not recommended.
The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.
Yes, there are certain compliances for a sole proprietorship, such as filing income tax returns, maintaining accounting records, and fulfilling any industry-specific regulatory requirements. However, the compliance burden is generally lower for sole proprietorships compared to larger entities.
Transferring a sole proprietorship involves selling the business and its assets to another individual or entity. The process typically includes legal documentation, informing concerned authorities, and complying with tax regulations. Consulting a legal professional is advisable when transferring a sole proprietorship.
There is no specific minimum requirement to start a sole proprietorship. You can begin a sole proprietorship with minimal capital, and the requirements often depend on the nature of your business.
A sole proprietorship exists as long as the proprietor continues to operate the business. It can be discontinued at any time by the proprietor’s choice, retirement, or in the event of the proprietor’s demise.
The licenses required for proprietorship registration can vary based on the type of business and its location. Common licenses may include a Shop and Establishment License, GST registration (if applicable), and any industry-specific permits or licenses.
Yes, you can obtain a PAN (Permanent Account Number) card for your sole proprietorship business. It’s advisable to separate your personal and business finances, and a PAN card for your business helps in this regard.
Bought Together
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Let's optimize your income tax
Unlock the full potential of your finances with Bright Accounts' Income Tax Services. Our experts ensure maximum returns while minimizing liabilities.
Obtain your business license today
Ensure compliance with local regulations and establish your business's legal presence effortlessly. Let us handle the paperwork.
Simplify GST Annual Returns Filing process
Let Indirect Tax experts from Bright Accounts file your annual Goods and Service Tax Returns in a timely and convenient manner.