Basic
Registration for proprietorships, including:-
1. UDYAM registration
2. GST registration.
| Pricing Summary | |
|---|---|
| Market Price | : |
| Ady & Co. Chartered Accountant | : ₹2899 All Inclusive |
| ₹2457 + ₹442 GST | |
| You Save | : ₹2000 (41%) |
| Government Fee | : Included |
Our Company
Chartered Accountant
Jahangirpuri Metro Station, Delhi, 110033
Documents Required For Proprietorship
PAN Card
Aadhaar card of the Proprietor.
PAN Card of the Proprietorship
Aadhaar CardAadhaar card of the Proprietor.
Proprietorship Registration
One of the earliest and simplest business structures to establish in India is the sole proprietorship. A proprietorship is a form of business where the owner owns, runs, and controls the whole enterprise. There are extremely few compliance requirements because the proprietorship and proprietor are identical, making it simple to start. A proprietorship cannot have additional partners or shareholders because the proprietor and the business are one and the same. Furthermore, the proprietor’s minimal liability from the business operations carried out under the sole proprietorship is unprotected. Therefore, small firms with no more than 5 employees are best served by this type of corporate entity.
Who is a sole proprietor?
The proprietorship business has a single owner, who is the sole proprietor. Therefore, a business will be continued by opening a new bank account for it, and GST registration will be completed by using the proprietor’s PAN and Aadhar. The business’s assets and liabilities are entirely the owner’s responsibility.
How to check proprietorship status?
We are not required to register as a sole proprietorship in India. A platform to check the status of a sole proprietorship does not exist as a result. However, once a proprietor has submitted an application for GST registration, the proprietorship’s GST registration and filing status can be checked on the GST Portal to validate its existence.
Proprietorship legal entity status and recognition
The proprietorship is not recognised separately as a distinct legal entity. Therefore, for all legal and official purposes, the proprietorship and the business owner are regarded as one and the same.
Sole Proprietorship Registrations & Licenses
The proprietor must acquire PAN and Aadhar in order to operate a proprietorship firm in India. The business owner must register for UDYAM, GST, and open a bank current account. The owner may additionally need to register under the Shops & Establishment Act in several states.
Depending on the business, the state, and the local rules, extra licences and permits can be necessary in addition to the aforementioned fundamental needs.
Advantages of Proprietorship
Easy registration:Since the sole proprietor is the same person who owns the business, there is no official incorporation or dissolution procedure. To comply with Indian rules and regulations, the owner may need to secure specific registrations and licences before starting a business.
Lower compliance:Since the sole proprietor is the same person who owns the business, there is no official incorporation or dissolution procedure. To comply with Indian rules and regulations, the owner may need to secure specific registrations and licences before starting a business.
Simplicity:Since there are no shareholders, partners, or directors, the proprietor can easily run this business with the fewest number of paperwork and approvals needed. Therefore, extremely tiny enterprises are best suited for this type of business structure.
Business decision:In a proprietorship, only the business owner makes choices on the operation. No other person’s approval or consent is necessary. Consequently, a business owner usually has the ability to make swift judgements on his operations.
Complete control:Because the owner of a sole proprietorship is the only owner. He or she has total authority over all resources, earnings, costs, and corporate activities.
Disadvantages of Sole Proprietorship
Funding:This kind of corporate organisation depends only on one person’s financial resources, borrowing capacity, and credit history. In this form of business structure, there are no other participants, so obtaining bank financing will be quite challenging. Since this sort of corporate entity does not permit profit sharing or shareholding, raising equity money will not be viable.
Personal liability:If a proprietor is unable to pay business loans or taxes, in a proprietorship – the personal assets of the business owner can be attached or encumbered. Hence, in this type of business structure – the proprietor will be held personally liable until all the liabilities are extinguished.Business continuity:The sole proprietorship will be automatically dissolved in the event of the business owner’s death or disability. As a result, there won’t be any business continuity.
Growth:A proprietorship is subject to a number of limitations including business continuity, liability, and financing. Therefore, proprietorships are only used by very tiny, unorganised firms.
Unincorporated business:Businesses that are not incorporated are sole proprietorships. As a result, it is impossible to check if a sole proprietorship is active or not using a centralised database. Sole proprietorships are typically categorised as unorganised commercial entities.
Registering a Proprietorship Online through IndiaFilings
Through Ady & Co., you may quickly register a proprietorship online. Only the business owner’s PAN and Aadhaar card are needed to form a proprietorship. In less than 15 days, we can assist you in obtaining the following registrations:
Proprietorship vs Limited Liability Partnership (LLP) vs Company
| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
| Ownership | Sole Ownership | Min 2 Partners Max 50 Partners | Designated Partners | Min 2 Directors Min 2 Shareholders Max 15 Directors Max 200 Shareholders For One Person Company 1 Director 1 Nominee Director |
| Registration Time | 7-9 working days | |||
| Promoter Liability | Unlimited Liability | Limited Liability | ||
| Documentation | MSME GST Registration | Partnership Deed | LLP Deed Incorporation Certificate | MOA AOA Incorporation Certificate |
| Governance | - | Under Partnership Act | LLP Act, 2008 | Under Companies Act,2013 |
| Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
| Compliance Requirements | Income tax filing if turnover is more than Rs.2.5 lakhs | ITR 5 | Form 11 Form 8 ITR 5 | ITR 6 MCA filing Auditor'sappointment Know More |
Frequently
Asked Questions
One person owns and runs the entire business in a proprietorship firm, a particular sort of business organisation. The business's debts and responsibilities are all individually owed by the owner. Ownership companies are a common option for small enterprises and startups in India since they are simple to set up and manage.
There are mainly four types of proprietorship in India:
1.Sole Proprietorship
2.One Person Company (OPC)
3.Registered Proprietorship4.
Unregistered Proprietorship
Each type of proprietorship has its advantages and disadvantages, and the choice of business structure depends on the proprietor's needs, goals, and resources.
In a country of 125 crore citizens and 6.8 crore taxpayers in 2017-18, close to 3 lakh chartered accountants (CAs) serve as the finance guides. As of April 2018, there are only 2.82 lakh CAs in India, and out of which only 1.25 lakh members are in full-time practice that makes approx. 44% of the total strength.
Indian Chartered Accountants are paid pretty well abroad, especially if one has initiated his/ her career in a Big 4 Firm and has gained an experience of 3-4 years in India. Middle East being the highest payer, even other countries pay a decent salary package.
