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Registration of a Sole Proprietorship in India is tailored for single-owner enterprises. Sole proprietors handle profits and income tax obligations under their personal names or a chosen trade name. This structure is frequently favored by small-scale businesses and individual entrepreneurs.
When a business is solely owned and managed by one individual, it assumes the form of a sole proprietorship. This category of business can be established within a span of fifteen days, rendering it a highly favored option in the informal sector, particularly among merchants and small-scale traders. Unlike other business entities, registration for a Sole Proprietorship isn't obligatory; instead, it is identified through alternative registrations like GST registrations. Nevertheless, it's important to note that a Sole Proprietorship bears unlimited liability and lacks perpetual existence.
Sole proprietorship is a popular form of business in which an individual owns and operates a business. Some of the benefits of a sole proprietorship firm are:
Income tax: Proprietors are required to file income tax returns every year, if their total income exceeds ₹ 2.5 lakhs (for individuals below the age of 60 years) or ₹3 lakhs (for individuals above the age of 60 years).
GST: Proprietorships with a turnover of more than ₹ 20 lakhs are required to register under GST. They are required to file monthly and annual returns, and collect and remit GST on their supplies.
Shop and Establishment Act: Proprietorships that have employees are required to register under the Shop and Establishment Act of the respective state. This Act regulates the working conditions of employees, such as the hours of work, wages, and leave.
Professional tax: Proprietors who are engaged in certain professions, such as lawyers, doctors, and chartered accountants, are required to pay professional tax. The rates of professional tax vary from state to state.
Trade license: Proprietorships that operate from a physical location are required to obtain a trade license from the local authority. The requirements for obtaining a trade license vary from city to city.
Other compliances: There are a number of other compliances that may apply to proprietorships, such as environmental regulations, labour laws, and pollution control laws. The specific compliances that apply will vary depending on the nature of the business.
Our experts give you professional guidance on many of the processes involved in registering your business as a sole proprietorship, along with registration of service tax, sales tax, import/export code, and professional tax.
Our team will connect you with an established vendor who will book your application and also keep you updated on its status and progress. The vendors we have onboard are well-accomplished and skillful in managing native registrations.
Our team will offer full assistance with the registration process. This could vary between 5 and 15 days, depending on the task at hand for the authorities involved.