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Sole- Proprietorship Registration

A Sole Proprietorship, also known as the sole trader, individual enterprneurship or Proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction business and owner.

Features of Sole- Proprietorship:

 One man ownership.

 Less formalities.

 No Separation between ownership and management.

 All profit or losses to the Proprieter.

Advantages of Sole- Proprietorship Firm

You are your own boss

In Sole proprietorship firm, proprietor is the sole owner of the firm and have direct access in the day to day opreations of the firm and the proprietor can make decisions as per his will which he deems fit for the benefits of firm.

Quick Decision Making

There is quick decision-making in sole proprietorship as all the decisions are made by a single person, though in the case of need, he may consult others while making decisions.

Business Secrecy

there is a very high secrecy of information in sole proprietor as the sole proprietor is not bound to share the information of proprietorship firm with other. In many cases secrecy of information is quite helpful for business opreations.

Ease of Formation

Generally, minimum legal formalities are involved in setting up or closer of sole proprietorship firm.

Documents required to Sole- Proprietorship Firm

Documents From Partners

Identity Proof

 Permanent Account Number (PAN) Card

 Aadhaar Card / Passport / Driving License / Voter Identity Card

Passport size Photographs

Notes:

 All the Copies of documents must be Self-Attested by the applicant.

Registered Office – Address

 Provide information about the address where the office of Proprietorship firm shall be situated.

Know What Bizlegal Can Do For You

At BizLegal, we aim to be your one-stop shop for
all Legal Compliance & Business Needs.

Steps for registration of a Sole- Proprietorship Firm:

Preliminary Requirements

 Select a suitable package.

 Provide basic details & documents required for registration.

 Make Payment through Secured Payment Gateway

Registration

 Filing of application

 Application of MSME and Udyam registration

 Application for TAN

 Registration in Shop and Establishment Act (optional)

Registered as Sole- Proprietorship Firm

 Sole- Proprietorship Firm will be registered with 4-5 working days subject to the government processing and approval.

Process for registration of Sole- Proprietorship firm

Day 1-2:

 Provide basic details & documents required for registration.

Day 3-4:

 Filing of application

 Application of MSME and Udyam registration

 Application for TAN

 Registration in Shop and Establishment Act (optional)

Comparison of different forms of organization

Particulars Sole Proprietorship Partnership Firm Private Company Public Company Limited Liability Partnership One Person Company
Act No specified Act Indian Partnership Act, 1932 Companies Act, 2013 Companies Act, 2013 Limited Liability Partnership Act, 2008 Companies Act, 2013
No. of Members Only one Minimum 2 to Maximum 50 Minimum 2 to Maximum 50 Minimum 7 to Unlimited Minimum 2 to Unlimited Only One
Registration NO Optional Mandatory Mandatory Mandatory Mandatory
Perpetual Succession NO No, if less than 2 partner Yes Yes Yes Yes
Management Control Sole owner Active Partners Board of Directors Board of Directors Designated Partners Sole member
Distribution of Profits Profit of owner Distributable as per deed As per subscribed capital proportion Distributable as dividend to Members Distributable as per deed Profit of Sole owner
Liability Unlimited Unlimited Limited Limited Limited Limited
Minimum Capital Requirement Not specified Not specified No minimum capital is required 5 Lakhs Rs. 1/- No minimum capital is required
Taxation Slab Rates 30% 22% 22% 30% 22%
Compliances Less Compliance Moderate Moderate High Moderate Moderate
Formation Process Easy to Form Easy to Form Moderate Complex Moderate Moderate
Foreign Direct Investment Not allowed Not allowed Allowed Allowed Allowed Allowed