Proprietorship
A sole proprietorship is one of the oldest and simplest business structures to establish in India. Owned, managed, and controlled by a single individual, this type of business is easy to start with minimal compliance requirements. Due to its structure, a proprietorship cannot have partners or shareholders, and the proprietor is personally liable for all business activities. This business model is ideal for small enterprises with fewer than five employees.
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Proprietorship Registration
Essential Licenses and Registrations for Proprietorships
To run a proprietorship in India, you need the following:
- PAN card and Aadhaar card:
- UDYAM Registration:
- GST Registration:
- Bank Account:
- Shops and Establishment Act Registration:
- Essential for business identification.
- Recognizes your business as an MSME and offers government benefits.
- Mandatory if your business exceeds specific thresholds for collecting and paying GST.
- Open a separate bank account for smooth financial management.
- Required based on your business location to comply with local labor regulations.
Registering a Proprietorship Online through Munibgiri
You can easily complete proprietorship registration online through Munibgiri. For a sole proprietorship registration, only the PAN & Aadhaar card of the business owner is required. We help you obtain the following registrations in less than 15 days:
- GST Registration
- UDYAM Registration
- Zero-Balance Business Current Account
- PAN Card for Proprietorship Firm Registration
- A proprietorship is not a separate business entity, so the PAN card of the business owner is used for the proprietorship.
Obtaining GST Registration for Proprietorship
GST registration for a proprietorship will be handled by Munibgiri. Required documents include:
- PAN of the Proprietor
- Digital Signature Certificate of the Authorized Signatory
- Consent by Proprietor for obtaining GST Registration
- Photograph of Proprietor and Authorized Signatory
- Bank Account Details
- Additional Address Proof Documents
- Obtaining UDYAM Registration for Proprietorship
- Once the GST registration is obtained, Munibgiri will help obtain UDYAM registration by submitting the Aadhaar card, PAN card, and GST certificate.
Bank Account for Proprietorship
The bank current account for a proprietorship will be opened in the name of the business owner using his/her PAN. Proof of business activity is required, and any two of the following documents can be submitted:
- GST registration certificate
- Shops & Establishment Act license
- Professional Practice License
- Importer Exporter Code (IEC)
- Obtaining Shops & Establishment Act License for Proprietorship
- The process varies by state and is available both online and offline. It can typically be obtained within 2-3 weeks.
Timelines for Sole Proprietorship Registration
A sole proprietorship registration through Munibgiri can typically be completed in less than 15 days,
depending on government and bank processing times.
depending on government and bank processing times.
Proprietorship Business Activities
A proprietorship can undertake most business activities allowed for individuals in India,
except for specialized industries requiring government approval.
except for specialized industries requiring government approval.
Compliances for Proprietorship
- Income Tax Filing:
- Business Income:
- GST Return Filing:
- TDS Returns:
- File personal income tax returns using forms ITR-3 or ITR-4.
- Declare business income using forms ITR-3 or ITR-4.
- Monthly and quarterly GST returns are required if registered under GST.
- File quarterly TDS returns if applicable.
Various other compliance requirements may apply based on the industry and location of the proprietorship.