Sole Proprietorship Registration

What is Sole Proprietorship Registration?

Sole proprietorship is one of the oldest and easiest Business Structure to start in India. A proprietorship is a type of business that is owned, managed, and controlled by one person – who is the proprietor. As the proprietorship and proprietor are one and the same, it is very easy to start and there are very minimal compliance requirements.

As the proprietor and the business are one and the same, a proprietorship cannot have other partners or shareholders. Further, there is no limited liability protection for the proprietor from the business activities conducted in the sole proprietorship. Hence, this type of business entity is best suited for every small businesses with no more than 5 employees.

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Document Required For Sole Proprietorship Firm

A sole proprietor is the sole owner of the proprietorship business. Hence, a business will be carried forward by making new bank account for the business and GST registration will be done by using PAN and Aadhar of the proprietor. The proprietor is completely responsible for all the assets and liabilities of the business.

Permanent Account Number (PAN) of Proprietor
Consent by Proprietor for obtaining GST Registration
Photograph of Proprietor and Authorized Signatory
Declaration / Authorization to Authorized Signatory
For commercial purposes, the rent / lease agreement should be in the name of the proprietor.
Additional documents such as Aadhaar Card, Driving Licence, Passport, or Voter ID in the name of the Owner with the complete address of the premises should also be provided if the address on the ownership document

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Compliances Required For Sole Proprietorship Firm

Income Tax Return Filing The proprietorship's business owner must submit a personal income tax return using form ITR-3 or ITR-4
Business Income Only the ITR-3 and ITR-4 income tax forms allow for the declaration of business income. As a result, in order to comply with income tax requirements, all proprietorships must submit forms ITR-3 or ITR-4
GST Return Filing If a proprietorship is registered for GST, a filing GST return each month and every three months in accordance with the business's registration plan
TDS Returns Tax must be withheld at source and TDS returns must be filed quarterly if the proprietorship has employees or spends more than a specific amount on goods and services.

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