Start your business in proprietorship easily and fast. It has never been so easy than to make a proprietorship in 2018. There is no registration required to start a proprietorship firm, however, tax registration like GST, TAN etc are mandatory. Banks also insist for two KYC document in the name of the proprietary firm, our Basic Pack takes care of the same.
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A proprietorship is the simplest form of business in which enterprises can start, Only one person invests entire capital in the firm, and he alone is entitled to the profits of the business. For a Proprietorship Firm, there is no registration as such, and it starts at the will of the proprietor/owner without obtaining any certification. However, registration with Goods and Services Tax (GST for Proprietorship Firm) and obtaining TAN number for complying with the TDS related provisions of the Income Tax Act is desirable and necessary. Bankers also insist for two KYC documents in the name of the firm to open a Current Bank Account in the name of Proprietorship Firm. We are available to assist in the registration of proprietorship firms all over India.
A proprietorship can start immediately at the will of the proprietor and obtain GST Registration within 30 Days of starting its operations.
A proprietorship cannot be funded with foreign money (No FDI) and it can be owned by only Indian citizens and NRI with some conditions.
The income of the proprietorship is included in the income of proprietor itself. Hence slab based tax rates apply resulting in tax benefit.
A proprietorship can be closed easily, all you have to do is to surrender all registrations and licenses obtained in the name of proprietorship.
The name of the firm should be checked with the trademark registry in India to avoid any infringement of Trademark.
To comply with the provisions of TDS TAN number is needed. TAN is a unique number allotted by the Income Tax Department.
Udyog Aadhar enables an entrepreneur to seek online services offered by ministries & departments of the govt.
GST is levied on the supply of goods or services & to comply with it, every eligible business needs to register under GST.
Our Professional Service Fee For Proprietorship Formation in India
Documents Required For Proprietorship FormationMultiple Lines - 9 AM to 9 PM (365 Days in a Year)
We have prepared a detailed and easy to understand comparative table showing availability of features and advantages of one form of business to that of others. The same can be found at the end of this page. Click here to learn more.
A proprietorship business can be started with any amount of capital and as such, there is no provision in the law which prescribe any minimum capital for the firm. The capital must be infused by the proprietor based on the nature and scale of the proposed business. You shall have the ability to introduce or withdraw capital at any time from the accounts of the proprietorship business as drawings.
NO. A proprietorship business is owned and controlled by a sole person. There is no requirement to engage any other person to start a proprietorship business.
Yes. Only an Indian Citizen can start proprietorship business. Similarly, no foreign funding is allowed in a proprietorship form of business. However, an NRI or a Person of Indian Origin (POI) can invest in proprietorship with prior approval from the central government of India.
There is no law which enforces registration of a proprietorship firm as such, SETINDIABIZ helps entrepreneurs in securing registration under MSME, GST, Shops & Establishment, etc. the MSME registration is done under Micro, Small and Medium Establishments Development Act, 2006 of Central Government.
Following are the proprietor documents which are required for registration of firm under MSME.
There is no certificate of registration or incorporation for proprietorship business as such. The legal identity of proprietorship as an entity is determined through various other registration or licenses obtained in the name of the proprietorship firm on the case to case basis. Similarly, each specific registration shall result in the issuance of a certificate of registration, for example, GST Certificate, MSME Registration Certificate, Tan Allotment Letter, etc.
The opening of Bank Account is regulated by the Reserve Bank of India, which have prescribed submission at least two entity proof for the proprietorship. To open a bank account, you may approach any bank nearest to you, and generally, they need following documents.
1. List of Entity Proof of Sole Proprietorship: (Any two documents from the below list)
2. Identity Proof of Proprietor for Bank A/c Opening:
3. Address Proof of Proprietor
Yes, the proprietorship can be converted to LLP or Private Limited Company
Check advantages and disadvantages of Common Business Entity Types
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