Sole Proprietorship Registration in India
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Sole proprietorship registration made simple with expert support
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Complete documentation and filing support done in one go
End-to-end Support
End-to-end support for proprietorship registration and compliance
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Select the perfect plan for your company registration needs
BASIC
- Expert Advisor
- GST registration
- MSME registration
STANDARD
- Expert Advisor
- GST registration
- MSME registration
- GST Filing for 1 F.Y. (up to 300 transactions)
PREMIUM
- Expert Advisor
- GST registration
- MSME registration
- GST Filing for 1 F.Y. (up to 300 transactions)
- ITR Filing
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Talk to registration expertWhat is a Sole Proprietorship?
A Sole Proprietorship is the simplest and oldest form of business in India, where a single individual owns, manages, and controls the business. It has no separate legal entity and the owner is personally responsible for all business liabilities. It's the best starting point for solo entrepreneurs who want a quick, easy, and low-cost way to start a business in India.
Single Ownership
Owned and operated by one individual
Minimal Compliance
Few legal formalities to start and run
Complete Control
Full decision-making authority
Features of a Sole Proprietorship
Single Ownership
Owned and operated by one individual
No Legal Separation
No distinction between owner and business
Unlimited Liability
Owner is personally liable for all debts and losses
Decision Making
Complete control and quick decision-making
Advantages of Sole Proprietorship
Checklist for Sole Proprietorship Registration
Basic Requirements
- Decide a business name
- Choose a business location
- Apply for PAN card (if not already available)
- Open a current bank account
- Obtain business license/registrations
- Get local registration
Eligibility Criteria
Basic Requirements
- Must be an Indian citizen
- Age 18 years or older
- Must have a legal business address in India
- Required licenses based on business type
Documents Required
Personal Documents
- PAN Card
- Aadhaar Card
- Passport-size photograph
- Voter ID / Passport / Driving License (as ID proof)
- Bank statement / Electricity bill (as address proof)
Business Documents
- Rent Agreement / Property documents
- No Objection Certificate (NOC) from property owner
- Utility bill for the premises
- GST Registration (if applicable)
- Shops and Establishment License
- Udyam Registration (MSME)
- FSSAI License (if food-related business)
- Trade License (for municipal compliance)
Post-Registration Compliances
GST Filing
If registered under GST, monthly/quarterly returns are mandatory
Income Tax Return (ITR-3)
Filed annually by the proprietor as an individual carrying on business
TDS Deductions
If liable (e.g., salary payment over threshold), deduct and deposit TDS
Business Books of Accounts
Required if income exceeds ₹2.5 lakh (for professionals/businesses)
Tax Audit
Mandatory if turnover exceeds ₹1 crore (business) / ₹50 lakh (profession)
Other Local Laws
Periodic renewals of trade, shop licenses or health permits
Tax Implications
Income Tax
- Income is taxed as personal income of the proprietor
- Slab-based taxation under Individual tax regime
- Eligible for deductions under Sections 80C to 80U
- Tax audit required if turnover > ₹1 crore
GST
- Registration mandatory if turnover exceeds limits
- GSTR-1 (monthly/quarterly)
- GSTR-3B (monthly)
- GSTR-9 (annual return)
Advance Tax
- Applicable if tax liability > ₹10,000/year
- Payable in four installments
- Due dates: 15th Jun, Sep, Dec, Mar
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