Proprietorship Firm
A Proprietorship Firm is ideal for very small-sized businesses like Small manufacturers and traders in the unorganized sector.
One of the key features of a Proprietorship firm is that it is technically not a company and thus, its incorporation is not mandatory under the Companies Act, 2013. A Proprietorship firm is one of the most popular business entities for small and micro-level businesses as they have very least compliance requirements. It is a very simple process to start a firm as it consists of only a single promoter who just needs to have a current bank account along with GST (Goods and Service Tax) registration. This firm does not offer benefits that come with other entities such as Limited Liability, perpetual and independent existence, corporate status, ease of transferability and so on. The sole proprietor of a firm is fully accountable for all the liabilities incurred by the Proprietorship and thus is suited for small businesses who do not intend to have perpetual existence.
Panomics Legal Mentors is the best business and legal services platform for services relating to Proprietorship Firm registration in India, offering a variety of company registration services like Private Limited Company Registration, One Person Company (OPC) registration, partnership, LLP registration, Public Limited Company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company registration, Indian Subsidiary registration and FSSAI registration.
Panomics Legal Mentors will help you to register a Proprietorship with least amount of effort from your side, offering you services that are specifically tailored for your needs.
Get a free consultation for Proprietorship registration with Our Top Rated Experts with simple Registration.
Advantages of Proprietorship Firm
Easy to start — A firm does not have an elaborate registration mechanism and it is very easy to start with only a few formalities. After the initial start-up formalities are taken care of, a current bank account and GST registrations are needed to complete the process.
Minimal compliances – The only way to recognize a Proprietorship is via their tax registration and any other business registrations that may be essential as per Government regulations. Thus, the compliance part of a Proprietorship involves primarily tax and professional return filings.
Name of Business – A Proprietorship can choose to have any name for its business so long as it does not infringe only any existing Trademark. This is due to the fact that a Proprietorship is essentially not registered under any particular act.
Tax benefits – There is no requirement to pay tax on income if the total earnings of a Proprietorship are less than 3 Lac Rupees. This, however, comes with a downside that unlike other forms of business entities such an LLP or company, tax deductions to a Proprietorship are not available.
Less Expensive – Compared to the only other business entity with a single promoter which is OPC, a Proprietorship is less expensive. There are no requirements to hire an auditor and no stringent regulatory compliances, thus making a Proprietorship a popular entity for small traders.
Documents Required For Proprietorship Firm Registration
Mandatory
- Copy of PAN card.
Identity Proof:
- Passport.
- Aadhar card.
- Voter ID.
- Driving license.
- Passport size photographs.
Address Proof:
- Self-attested copy of Telephone/Mobile/Gas/Electricity bill.
- Bank Account Cancel Cheque/Bank Account Statement (Less than 2 months old).
Business Address Proof:
- Telephone/Mobile/Electricity/Gas bill (Less than 2 months old).
- In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business.
- In the case of self-owned premises registered title document.
Minimum Requirement
- A minimum of 1 proprietor.
- No requirement of minimum capital.
Registration Process Proprietorship Firm
Panomics Legal Mentors will help you to register a Proprietorship Firm with least amount of effort from your side, offering you services that are specifically tailored for your needs.
Get a free consultation for Proprietorship Firm registration with Our Top Rated Experts with simple Registration.