Proprietorship Firm Registration – Start Your Business as a Sole Owner
- We assist in obtaining GST registration under your name, enabling you to conduct business legally, issue GST invoices, and claim tax benefits.
- Open a current account in your business name using valid documents like GST certificate or Shop Act license, to manage your finances professionally.
- We help you obtain the Shop and Establishment registration based on your state laws, necessary for local business operations and employee compliance.
- From income tax return filing (ITR-3/4) to GST and TDS return filing, we ensure your sole proprietorship stays compliant with ongoing legal requirements.
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What is a Sole Proprietorship?
A sole proprietorship is India’s simplest and oldest business structure, owned and managed entirely by one individual (the proprietor). With no legal distinction between the owner and the business, this model offers minimal compliance and quick setup. Ideal for solo entrepreneurs or micro-businesses (≤5 employees), it carries unlimited personal liability – the proprietor is personally responsible for all debts and legal actions.
How to Register a Proprietorship
Unlike companies or LLPs, proprietorships have no central registration. Legal recognition comes through:
- GST Registration: Mandatory for turnover above ₹20 lakh/₹10 lakh (services/goods).
- UDYAM Registration: For MSME benefits.
- Shops & Establishment Act License: State-specific commercial permit.
- Business Bank Account: Opened under the proprietor’s PAN.
CA Vakeel simplifies online registration in <15 days, handling GST, UDYAM, and compliance.
Essential Documents for Proprietorship
| Requirement | Purpose |
|---|---|
| Proprietor’s PAN | Primary tax ID (no separate firm PAN needed). |
| GST Registration | Mandatory for applicable turnovers; validates business operations. |
| UDYAM Certificate | Unlocks MSME subsidies, priority lending, and tax benefits. |
| Bank Account | Business current account using proprietor’s PAN and GST certificate. |
| Shop Act License | Legally authorizes commercial premises operations (state-specific). |
Benefits of Choosing Proprietorship
- Easy Setup: No complex incorporation/dissolution.
- Low Compliance: Minimal filings (no MCA audits/returns).
- Full Control: Single owner makes all decisions.
- Cost-Efficient: No registration fees (only tax/license costs).
- Direct Revenue Flow: Profits directly belong to the proprietor.
Drawbacks of Proprietorship
- ❌ Unlimited Liability: Personal assets (home/savings) can cover business debts.
- ❌ Funding Challenges: Cannot raise equity; limited to personal loans.
- ❌ No Continuity: Business dissolves if the proprietor dies or is incapacitated.
- ❌ Growth Constraints: Unsuitable for regulated sectors (banking, insurance, telecom).
- ❌ Unorganized Perception: Lacks credibility with large clients/investors.
Register Your Proprietorship with CA Vakeel
Step 1: Share PAN and Aadhaar. Step 2: CA Vakeel files:
- GST registration (with proprietor’s documents).
- UDYAM/MSME certificate. Step 3: Open a zero-balance business bank account. Step 4: Obtain Shop Act License (if applicable).
Access included: LEDGERS accounting software for invoicing, GST filing, and compliance.
Mandatory GST Compliance
Documents Required:
- Proprietor’s PAN and Aadhaar.
- Business address proof (lease/utility bill).
- Bank account details (cancelled cheque).
- Digital Signature (DSC) for online filing.
CA Vakeel handles DSC, application drafting, and GST portal submissions.
Ongoing Legal Requirements
- Income Tax: File ITR-3/ITR-4 annually for business income.
- GST Returns: Monthly/quarterly filings based on turnover.
- TDS Quarterly Returns: For salaries or vendor payments.
- Renewals: Shop Act License (state-specific timelines).
Penalties apply for delays (e.g., 18% p.a. on late GST payments)
Permitted and Prohibited Activities
Allowed: Retail, consulting, freelancing, and small manufacturing. Restricted: Banking, insurance, defence, telecom (require company/LLP + licenses).
Ideal for: Unorganized sector businesses with <₹50 lakh turnover.
Expert Proprietorship Support
CA Vakeel offers:
- End-to-End Registration: GST, UDYAM, bank account setup.
- Compliance Management: Monthly GST filings, annual ITR.
- Legal Advisory: Liability protection and license guidance.
- Software Integration: LEDGERS platform for accounting/taxes.
Start your proprietorship today with CA Vakeel – your partner in compliant entrepreneurship.