Sole Proprietorship Firm Registration Process

A sole proprietorship firm does not need any specific registration, but the owner is advised to get some essential registrations for better operational functioning of the firm. 

The registrations required for a proprietorship firm are:

1. MSME Registration

2. Shop and Establishment Act License

3. Goods and Services Tax (GST) Registration

4. Office Address Proof

Documents Required for Sole Proprietorship Registration in India

      Legal Name of  Proprietorship 

• Aadhar Card: Aadhar card number is necessary for the official registration. This is important to link business along with the other details which are linked with Aadhar card
• PAN (Permanent Account Number) card: PAN card is needed at the time of proprietorship registration to file Income Tax Returns. Thus, it is also mandatory to get a GST registration number (if applicable)
• Bank account number: The bank account linked with office transactions needs to be submitted. This can also be applicant’s personal account, if he/she do not have a separate bank account for business
• Proof of business place (Electricity bill/ rent agreement with NOC from  Owner with notry   
• Email ID 
• Mobil Number 

Sole Proprietorship Entity Benefits

There are various benefits of starting your business as a proprietorship concern, some of which are listed below,

• Less Compliances
• Easy to start
• Cost Efficient
• Business Name
• Absolute Control
• Easy to close

Compliances for Proprietorship

The following are some of the compliances that are applicable for a sole proprietorship:

Income Tax Filing: The business owner of a proprietorship will have to file personal income tax return using form ITR-3 or ITR-4.

Business Income: Only income tax forms ITR-3 and ITR-4 allow for declaring business income. Hence, all proprietorships will have to file form ITR-3 or ITR-4 to be compliant with the income tax regulations.

GST Return Filing: If a proprietorship has GST registration, GST return must be filed every month and quarter as per the scheme under which the business is registered.

TDS Returns: In case the proprietorship is having employees or purchasing goods/services beyond a certain threshold - tax must be deducted at source and TDS returns must be filed every quarter.

In addition to the above, various other compliance requirements maybe applicable to the proprietorship based on industry and location.

Naveen Sharma 

Director 

Novation Knowledge Solutions Private Limited 
527 Keshavpura Sector -4 Kota Rajasthan 

Phone Number : 8107903971
 Email ID :  novationknowledgesolutions@gmail.com