Utility Bill (Electricity/Water) of Business Place.
Collection of basic information
Provide Required Documents
Preparation of online application
Application for allotment of TAN
Application for MSME Registration.
Application for GST Registration
Allotment of TAN,MSME Certificate and GST Registration Certificate
*Subject to Government processing time
What is Proprietorship?
Proprietorship has been defined as the simplest business form under which one can operate a business. It is not a legal entity and simply refers to a person who owns the business, personally responsible for its debt. A sole proprietorship can operate under the name of its owner or else do business using a fictitious name. It is a popular form of business in India, because of its simplicity of set up and nominal cost.
Advantages of Proprietorship Firm
1.Simple to Start
The entrepreneur can start operations and receive payments from clients as no registrations are required to start a proprietorship.
The other advantage of a Proprietorship is that it requires no additional compliance in most cases. The PAN of the proprietor and proprietorship are one and the same. Hence in most cases, only income tax return in Form ITR-3 must be filed every year.
The proprietor does not have to particularly wind up the company in case he wants to cease operations. This saves a lot of time and effort.”
4.Lower Tax Rate
All income earned by proprietorship business is taxable in the hand of the individual. Individual Income Tax slab is applicable and the income tax threshold limits also applicable for calculating the Tax.
Frequently Asked Questions
1.How does a sole proprietorship differ from other company forms?
A sole proprietorship differs from other forms of business in several ways. Sole proprietorships are the least complex and cheapest form of start the business. Sole proprietorships require minimal formal paperwork to start the business. Sole proprietorships do not shield individuals from liability for their business debts, or we can say individuals having unlimited liabilities. Sole proprietorships are treated as simple income for tax purposes and do not need to have separate taxes prepared.
2.Can I convert from sole proprietorship to a private limited company or partnership?
Yes, it can be possible, when the Individual needs conversion from proprietorship to private, LLP, or OPC can be done at a point of time.
3.Who is a proprietor?
The owner of a sole proprietorship business in India is called a proprietor. It cannot be a corporate or legal entity. The proprietor and the proprietorship are considered to be the same entity legally.
4.What are businesses commonly run as Sole Proprietorships?
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.
5.How long does it take to establish a business with Sole Proprietorship?
A Sole Proprietorship business functioning from 1st day itself. This simplicity makes it popular among small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.
6.Can others invest in a proprietorship?
Proprietorship firms are business entities that are owned, managed, and controlled by one person. So they cannot issue shares or have investors.
7.What are the annual compliance requirements?
Proprietorships will have to file their annual tax return with the Income Tax department. However, annual reports or accounts need not be filed with the Ministry of Corporate Affairs, which is required for an LLP or a company.
8.What is the capital required to start a proprietorship?
There is no limit on the minimum capital required to start a proprietorship.
9.Are you personally liable for your sole proprietorship?
Yes, you are personally liable for your sole proprietorship. You will be held personally accountable for your business’s debts and legal judgments.