GIVE LEGAL RECOGNITION TO YOUR BUSINESS

Choose the right path for your business by consulting our business incorporation experts. Take your first step today.

Submit Your inquiry

Sole Proprietorship Registration in India

What is Sole Proprietorship in India?

A sole proprietorship business in India is the simplest form of business structure that is owned, managed and controlled by the sole owner.  The sole proprietorship is not a legal entity rather it just refers to a sole person who owns the business and is personally liable for its debts.  This is one of the most popular forms of business structure for micro and small businesses operating in the unorganized sectors due to its simplicity, ease of information access and nominal cost. These factors combined have made getting certificate of incorporation for sole proprietorship a good idea.

However, getting certificate of sole proprietorship is generally not suitable for the medium scaled and large scale businesses due to the array of disadvantages like unlimited liability, no separate legal entity, non-transferability and limited life of the business.

The government of India has not prescribed any mechanism for the registration of sole proprietorship firm.  Thus, the registration of a proprietorship can only be recognized through tax registrations that the business is required to have as per the rules and regulations.  These tax registrations may include GST Registration that must be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.

What are the benefits of Sole Proprietorship Firm Registration?

After registration of a Proprietorship firm in India, you gain access to the following perks:

  1. The registration process is much easier: Because of a lack of a regulatory authority, you have to take a different approach for registering a sole proprietorship firm in India. The steps are pretty simple and all of them involve submitting an offline application in your regional office.
  2. There is a lack of regulatory requirements: Due to the lack of oversight, there are not many regulatory requirements for you to follow. You can just fill out your income tax returns each year – GST returns if you are earning more than enough – and you are good to go.
  3. Maintaining a business becomes easy: As a single owner business registration, A Sole proprietorship is very easy to manage. There are not many components for you to consider. In most cases, only small shops go for proprietorship business registration. And thus, other than taking care some of the backend finances, there is not much infrastructure you need to bother yourself with.
  4. Freedom to do business your way: As you can start your business solo, you are free to conduct your business in any way that you want. Consider a sole proprietor as a lone ranger in the forest of business entities that can conduct his business without being bothered by needless regulations.