A sole proprietorship firm is ideal for those, who want to start a business with the lowest capital and it can be started with a single natural person. It has a very short registration procedure because it does not have any special Act or law.
A sole proprietorship firm is ideal for those, who want to start a business with the lowest capital and it can be started by a single natural person. It has a very short registration procedure because it does not have any special Act or law.
A proprietorship firm consists of only a single person as to its owner and it is very small in nature and with fewer legalities. Similarly, Capital Requirements also have no criteria to start the business as it is not a legal entity. Proprietorship firm was also known as its full name “SOLE PROPRIETORSHIP FIRM”.
When one wants to start out-up small businesses, varying from establishing local studios, shops, etc, where one person invests within the sort of capital and avails profit and loss. This kinds of business require a very simple process with minimal legal compliance and formation costs. This follows the easy registration process, under various laws, such as Micro, Small and Medium Enterprises (MSME), Tax Laws, this also includes, different acts, like Shop Act, Labor Act.
Being registered under a ''Proprietorship firm'', does not require any specific legal certificate, which enables a small businessman to easily afford the expenditure. If you are looking for a new venture then this Proprietorship firm is the best option with small capital in a short time frame.
VAKIL KARO legal experts help to register the proprietorship firm and its time to time compliance. VAKILKARO has legal expertise in other Registrations, Legal Compliance, PAN card &TAN card of the firms or company, ESI & EPF of firms or companies, and OPC, private limited company, limited liability partnerships.
Sole Proprietorship firm has no legal existence, therefore Individual Income tax slab rates are applicable on the proprietorship firm as ITR filed on the Proprietor’s PAN Card basis.
Except for Regular GST, the Sole Proprietorship firm does not need to file any monthly Compliances.
Compared to other business registrations like a private limited company, Sole Proprietorship is less expensive.
A sole Proprietorship firm can easily be converted into One Person Company, a Private Limited Company, Limited Liability Partnership, etc.
Sole Proprietorship firm has fewer Compliances unlike Private Limited Company or Limited Liability Partnership etc.
PAN CARD of the proprietor is mandatorily required
Any proof of identity like Aadhaar Card/ voter id card/driving license of the proprietor is mandatorily required
The client has to be provided at least one Trade name.
The proprietor must have their photos, mobile number, valid emails.
The client has to provide Office Address proof like Rent Agreement/Property papers with the latest electricity bill.
*In case of NRI or Foreign National, documents of director (s) must be notarized.
Sole Proprietorship firm can only be Started by a “Natural Persons” like Ram, Shyam etc. and an Artificial like a Company can not start the Sole Proprietorship firms, hence Sole Proprietorship firm can only be registered by the natural Person.
All Business has its own Separate Current Account, no any business can be operated by saving accounts, hence sole proprietorship firm should also be operated by the separate current bank account to maintain its daily routine transaction and good keeping of business records.
VAKIL KARO also supports to opening a bank account a free of cost.
The Firm’s life is unlimited until you surrender its certificate. There are some renewal requirement of licenses like FSSAI, SHOP ACT etc.
Yes, any time it can be converted in to private limited or one person company by the legal provisions.
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