Sole Proprietorship Firm

When a business is owned by one person. Give wings in your entrepreneurial dreams. Contact DAILY TAX ANALYSIS and get your Sole Proprietorship firm registration by availing of our exclusive offer!

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Overview of Online Sole Proprietorship Firm Registration in India.

A Sole Proprietorship Firm Registration is a business that is owned, directed and run by a single. proprietorship is recognized by different registrations such as Udyam registration, goods and services tax registration, shop & estabishment etc. it's the foremost acquainted variety of business in India, used by little scale business operators. This sort of commercialism is extremely widespread among the unorganized sector .It has large short comings, such as unlimited liability of proprietor.

Why should you go for Sole Proprietorship Firm Registration in India? 

Minimum Compliance : A sole proprietorship firm has minimal compliance requirements, which makes it a much more preferred option than a sole proprietorship.

Easy to Start : Sole proprietorship isn't governed by any law and doesn't need any necessary registration. Hence, it's the simplest approach of beginning a business entity.
Lower Cost : As there are minimum compliances, there may be no want to hire an auditor for assembly the legal compliance requirements.
Complete Management: As a sole proprietorship firm is in hand by one person, he has the whole control over the business decisions and there are not any interventions of any kind.

List of Documents Required for Registration of a Sole Proprietorship Firm in India.

1. PAN Card of the Proprietor

2. ID Proof of the proprietor- Voter’s ID / Passport / Driving License / Aadhaar card

3. Passport Size Photograph

4. Address Proof of the Premises:

    • Rental agreement or Lease agreement if the premise is rented/leased

    • Latest tax paid receipt / Sale deed if the premise is owned by any of the Directors

5. Latest Electricity bill / Telephone bill / Gas Connection bill

6. NOC from the owner of the premise

Fees for Sole Proprietorship Firm registration.

The total fees for registration of sole proprietorship Firm in India Starting from Rs. 999 as well as government and professional fees. The most value is necessary registrations for existence of proprietorship firm like GST registration, MSME registration, etc.


Time required for Proprietorship registration

On an average, it takes around 7-10 working days for registration of sole proprietorship firm in India subject to document verification by the involved authorities.

Process of establishing a Sole Proprietorship Firm in India.
Step 1: Choose a name for the sole proprietorship firm

Step 2: Apply for a GST in the name of sole proprietorship firm

Step 3: Apply for a MSME card in the name of sole proprietorship firm

Step 4: Open for a Current Account card in the name of sole proprietorship firm

Difference between Sole Proprietorship and One Person Company (OPC)

Both of the entities will continue their business activities with only one person as an owner or shareholder or director. Still, there are varied points of variations between them.

Sole Proprietorship
One Person Company
Not a Separate Legal EntitySeparate Legal entity
Unlimited liabilityLimited Liability
No perpetual successionPerpetual succession
Registration not requiredRegistration required
Financing depends on the credit record of the ownerFinancing depends on the credit record of the OPC
Repayment of Loan is the sole responsibility of the of the ownerRepayment of Loan is not the sole responsibility of the OPC
Income Tax rate is between 5% – 30% depending on the income tax slab the proprietor falls underIncome Tax is 30% of profits


 Frequently Asked Questions on Sole Proprietorship Firm

Q.1 How do I register my business as a sole proprietorship?
You will register your business as a sole proprietorship by GST registration. There are further and beneficial registrations too like MSME, shop & establishment license, etc.
Yes, you'll be able to prefer to change the form of your entity anytime you wish as per by the govt. regulations.
Yes, it is required to obtain GST registration in order to establish the existence of the sole proprietorship firm in India.
Any Indian citizen can set up a sole proprietorship in India. All you need to do is open a current account on behalf of the company and other required licenses as stated above.
Sole proprietorship Firm is best suited to unorganized and little businesses. it's due to the ease of incorporation and minimum compliance necessities that the individual must adhere.
1. As a sole proprietor, you need to file income tax return annually. 2. Also, you would like to file your GST return if you're registered under GST. 3. A sole proprietor ought to additionally deduct TDS and file TDS return if liable for Tax Audit

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