Sole Proprietorship Registration
Suitable for a Single person who wants to start a business with the Zero or Minimum Fund.
Bizzonns helps you in selecting the Best Suitable Format for your business by understanding your requirements and needs. It also helps you in getting your Business registered and operational.
Professional fees starting at Rs. 1,500/- Onwards
100% Online, Easy & All India Services
12+ Years Experienced Team of Professionals
Total Number of Served Clients
Availability in Major Indian Cities
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Overview
Sole Proprietorship is the easiest form of doing business in India, as it is not governed by any specific law. It is a single-person firm registration, where one person is the owner and is personally liable for all debts and liabilities of the business. It is owned and run by one natural person and in this, there is no legal distinction between the owner and the business.
Due to its ease of creation, low cost, and minimal compliance requirements, sole proprietorship is a simpler type of business. For the efficient operation of their firm, sole proprietorships are advised to obtain a few of the below-mentioned registrations-
GST Registration
Shop and Establishment Registration
MSME/UDYAM Registration
Professional Tax Registration
Required Documents For Proprietorship Firm Registration
Aadhar Card
PAN Card/ Driving License/ Voter ID
Current Bank Account
Office Address Proof
Nature of Business
Advantages Of Sole Proprietorship Registration
Easy to Start and Close Business
Since it does not need to be registered under any specific Act, it is simple to start and close.
Less Compliance
As it is not governed by any of the Acts, very few compliances need to be adhered to. Thus, it also leads to Lesser Compliance costing.
Taxation Benefit
Proprietorship firms are subject to the same Income Tax Slabs as Individuals. Therefore, there are lower slab rates and benefits that apply to them.
No Business Name Limits
No restrictions on business names, but entrepreneurs are encouraged to choose original names and register trademarks.
Compliances
A sole proprietorship only needs to file an income tax return once a year. Accounts for proprietorships need to be audited if their annual revenue exceeds RS 5 crore.
COMPARISON WITH OTHER FORMATS TO CHOOSE THE BEST SUITABLE FOR YOUR BUSINESS
LLP vs. Private Limited Company vs. Partnership Firm vs. OPC Company vs. Proprietorship Firm
| Proprietorship Firm | Partnership Firm | Limited Liability Partnership | Private Limited Company | One Person Company | ||
|---|---|---|---|---|---|---|
| Governed by | Not Governed by any specific act | Indian Partnership Act | LLP Act, 2008 | Companies Act, 2013 | Companies Act, 2013 | |
| Recommended | Sole Promoter | Small Business | Small Business | Start-ups and growing business | Sole Promoter | |
| Registration | NA | Optional | Mandatory | Mandatory | Mandatory | |
| Members Liability | Unlimited | Unlimited | Limited | Limited | Limited | |
| Separate Legal Entity | No | No | Yes | Yes | Yes | |
| Number of Members | Only 1 | 2 – 50 | 2 – Unlimited | 2 – 200 | Only 1 | |
| Transferability | Non-Transferable | Non-Transferable | Transferable, if ROF registered | Transferable | Transferable | |
| Compliance | Low | Low | Moderate | High | High | |
| Statutory Audit | No | No | Based on Turnover | Applicable | Applicable | |
| Taxability | Low | High | High | Moderate | Moderate |
Any Questions? Answered
Our FAQ section addresses common inquiries to help you find the information you need quickly. If you have further questions, feel free to reach out!