What is a Sole Proprietorship?

Sole Proprietorship registration in India is for one owner business. Sole proprietors manage profits and income tax under their own names or a trade name. It's a common choice for small businesses and individual entrepreneurs.

When a business is owned and governed by one person, it is called a sole proprietorship. This type of business can be incorporated in fifteen days and hence makes it one of the most popular types of business to begin in the unsystematic sector, specifically among merchants and small traders. For a Sole Proprietorship business, any business registration is not required like it is required in case of Partnership Firms or in case of a Limited Liability Partnership or a Company, as it is identified through alternate registrations, such as GST registrations. However, its liability is unlimited and it also doesn’t have perpetual existence.

Checklist Items for a Sole Proprietorship Registration
• A certificate/license issued by Municipal authorities under the Shop & Establishment Act.
• In case of Professional Services: The license issued by Registering authorities like the Certificate of Practice is issued by the Institute of Chartered Accountants of India.
• The utility bills such as electricity, water, and the landline telephone bills in the name of the proprietary concern,

To start a Sole Prorietorship, the following documents are required
• Address and identity proof of the Individual, in whose name the business is to be started
• PAN card, KYC documents and
• Rental agreement or sale deed (in case of Shops & Establishment Act Registration) for the Place of Business

Compliances Required For Sole Proprietorship Firm

Some of the compliances that apply to a sole proprietorship include the following:

• Income Tax Return Filing: The proprietorship's business owner must submit a personal income tax return for his business.
• GST Return Filing: If a proprietorship is registered for GST, a filing GST return each month/every three months in accordance with the turnover of the business.
• TDS/TCS 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.

In addition to the mentioned points, the proprietorship may also need to comply with additional regulations according to its industry and region.

How LetsTaxCA Executes A Sole Proprietorship Registration Procedure?
• Professional Guidance: Our experts give you professional guidance on many of the processes involved in registering your business as a sole proprietorship, along with registration of GST, import/export code, professional tax or any other licenses/registrations which might be required pursuant to the requirements of specific business.
• Access to Experts: We provide access to reliable professionals and coordinate with them to fulfil all your legal requirements. You can also track the progress on our online platform, at all times.
• Realistic Expectations: By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.