Proprietorship Firm Registration - Online Process, Importance, Documents Required
Sole Proprietorship firm is the simplest form of business entity in India which is owned and managed
by a single person. It is the easiest way of registering and starting a business.
What is a Sole Proprietorship Firm?
Sole proprietorship is a type of business entity which is owned and managed by a single person only.
It is not governed by any law and hence it is the easiest form of business in India. All the
decisions and management of the business is in the hands of one person.
Benefits of Proprietorship Firm Registration
- Minimal Compliances: A proprietorship firm has very minimal compliance requirements which
makes it much more preferable option than One Person Company.
- Easy to Start: Sole Proprietorship is not governed by any law and does not require any
mandatory registration. Hence, it is the easiest way of starting a business entity.
- Lower Cost: As there are minimal compliances, there is no need to hire an auditor for
meeting the legal compliance requirements.
- Complete Control: As a proprietorship firm is owned by a single person, he has the
complete control over the business decisions and there are no interventions of any kind.
Procedure of Sole Proprietorship Firm Registration
- Step 1: Application for GST Registration
Depending upon the requirement of the
business and GST Law, application for GST registration has to be made with the department. GST
registration usually takes around 5-10 working days.
- Step 2: MSME Registration
To establish the existence of your proprietorship firm and
avail various benefits, you’ll have to file an application for registering your firm as Small
and Medium Enterprise (SME) under the MSME Act. It is beneficial for the business at the time of
taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest
rates.
- Step 3: Application for Shop and Establishment License
You are required to obtain a
shop and establishment license according to the local laws. It is issued by the municipal
corporation on the basis of the number of employees or workers in the firm.
- Step 4: Bank Account Opening
Once all the steps are completed, the current bank
account should be opened by the proprietorship firm. You can contact us for assistance with your
current bank account opening.
Online Proprietorship Firm Registration with Legal Papers India
The process of registering your business as a sole proprietorship firm is not much complicated. Our
experts at Legal Papers India can make the whole registration process hassle-free for you. Register
your firm online in 3 easy steps:
- Fast Process in Record Breaking Time
- Experienced Expert
- No Hidden Charges
Documents Required for Sole Proprietorship Registration
- Copy of Aadhar Card
- Copy of PAN Card
- Address proof of office
Documents You’ll Get After Proprietorship Registration
- GST Registration Certificate
- Shop and Establishment Act License
- MSME Certificate
Packages
Basic
- Shop Establishment Registration
- Current Bank Account
- Business Website
LET'S START
Standard
- Shop Establishment Registration
- MSME Registration
- eGuide on MSME
- Current Bank Account
LET'S START
Premium
- Shop Establishment Registration
- MSME Registration
- eGuide on MSME
- GST Registration
- Current Bank Account
- Business Website
LET'S START
Frequently Asked Questions (FAQ)
You can register your business as a sole proprietorship by GST registration. There are
additional and beneficial registrations too like MSME, Shop & License License, etc.
The three advantages of a sole proprietorship are:
- Minimal Compliances requirement
- Easy to Start
- Lower Cost
Yes, one needs to obtain GST registration in order to establish the existence of the
proprietorship firm.
On average, it takes around 7-10 working days for registration of sole proprietorship
firm in India subject to document verification by the concerned authorities.
