Process of Registration by Taxhub
Upload the basic Documents of Sole Proprietor
Choose your Requisite plan and pay the Fees
Taxhub apply for Shop Act/ MSME/ Act/ GST Act Reg
Assistance in opening of Bank Account
Get Your Business Docket
What is a Sole Proprietorship in India?
An Individual or sole trader running a business independently is a proprietorship firm. The term “Sole Proprietorship firm” is not defined legally under any Act. Hence, there is no separate legal existence of the proprietorship firm. There is no specific proprietorship firm registration. It can be registered under different Acts such as MSME, GST, Shop & Establishment Act, Professional Tax, etc.
As the proprietorship firm is not a separate legal entity, the government does not issue a separate PAN card for a proprietorship firm alike other entities. As a result, the PAN of a proprietor will be the PAN of the firm.
A proprietorship firm is easy to start with minimal cost and investment. It is an unorganized form of business structure that is a very easy to manage for an Individual. It is very simple form of business which has minimum annual compliances. Hence, maintenance charges are very less.
Who is a Sole Proprietor?
A proprietor is the owner of the Sole Proprietorship business. It is not a corporate or legal entity. The proprietor and the Proprietorship are the same legal entity.
The PAN and other documents of the proprietor are the basis for obtaining all the registration and licenses. The proprietor is held personally liable in case of any liabilities in a business.
Basic Documents Required
- Sole Proprietor Passport Size Colour Photograph
- Copy of Pan Card of Sole Proprietor.
- Copy of Aadhar Card of Sole Proprietor
- Copy of Bank Passbook/ Cancelled Cheque
- Mobile Number of Sole Proprietor.
- Email Id of Sole Proprietor.
Note: All documents can be uploaded at Taxhub Website or through an email or What’s App.
999/-
All Inclusive Fees
| MSME (Aadhar Udyog Registration |
1,499/-
All Inclusive Fees
| MSME (Aadhar Udyog Registration |
| Shop Act Registration |
2,499/-
All Inclusive Fees
| MSME (Aadhar Udyog Registration |
| Shop Act Registration |
| GST Registration |
Beneifts of Sole Proprietor Registration in India
It is very easy that proprietor can register it by taking the registration under any act as mentioned above by following minimum legal procedures.
The formation cost of sole proprietorship is very low as compared to other constitution such as Partnership, Limited Liability Partnership and Private Limited Company.
Sole Proprietor is a sole owner of the sole proprietorship hence he/she enjoys a single decision power in the firm. Sole Proprietor is a quick decision maker however it is better at low level business.
There are no specific compliance to be carried on by sole proprietorship firm but if any act under which he/she registered and that act have any specific compliance requirement then one have to comply with that. For E.g. if the person is registered under GST Act then they have to file GST Returns.
Sole proprietorship is a type of business that have very limited compliances at very low running cost. Hence on can focus on their operational part morethan worrying about the cost of compliance.
In a sole proprietorship, the income tax rate will be charged according to slab rate under Income Tax Act, 1964 but after the certain turnover audit is also required.
Shares of a company are movable property and thus can be transferred like any other property. A public company can freely transfer its shares, but there are some restrictions.
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted.
