Register a Proprietorship effortlessly

Are you considering starting a small to medium-sized business where you will be the sole owner of the company and its operations? A proprietorship business might be the option for you. A sole proprietorship is the oldest form of business in the world, and it’s also one of the most hassle-free ways to run your business.

As a sole proprietor, the business will be registered under your name, and you and your company will be considered a single entity for tax purposes.

How it Works

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Fill Form

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Expert Discussion

Expert Discussion

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Upload Link

Upload Documents Link

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Work Completed

Work Completed

Your Proprietorship Certificate is ready

What is

Sole Proprietorship?

Sole proprietorship, also known as a sole trader, an independent businessman or a business owner, is a type of business that is owned and controlled by a single person and in which there is no legal distinction between the owner and the business entity.

The sole trader shall receive all revenues (subject to company-specific taxation) and shall have unlimited liability for all losses and debts. Each asset of the business is the owner's assets, and all the debts of the business are the owners'.

Advantages and Disadvantages of Sole Proprietorship

Documents required for Proprietorship registration

Aadhar Card
PAN Card
Photo
Bank Statement
Registered Office Address proof

Own- Electricity Bill/ Property tax receipt
Rented- Rent Agreement

Phone Number
E-mail Id

Proprietorship firm to Private Limited Company

Conversion of Proprietorship to Private Limited Company

Proprietorship firm to OPC

One-person companies are a perfect model for medium-sized business organizations. One person company is an enhanced and better type of a sole proprietorship company and is, therefore, a smart business decision to transform sole proprietorship into one Person Company. This business structure gives the full control of the business to the sole owner while at the same time restricts its responsibility to protect its personal assets since the owner of this company is a shareholder.

Documents required

For the best consultant of proprietorship in India, contact us at CharteredMunshi.com

Proprietorship firm to LLP

The conversion of a sole proprietorship into a limited liability partnership (LLP) is a good alternative for anyone looking to grow their small and medium-sized business. As it has only one man, it is not possible to convert a sole proprietorship directly into an LLP. It can be achieved either by closing the ownership and registering an LLP or by involving someone else in the business and making him a partner and then converting him to an LLP.

Procedure of Proprietorship firm to LLP

Proprietorship Partnership Limited Liability Partnership Private Limited Companies One Person Company
Registration No formal Registration Optional Registered with MCA Registered with MCA Registered with MCA
Minimum Members One person Two person Two person Two person Two person - One Director, One Nominee
Maximum members One person Twenty Unlimited Two Hundred Two person - One Director, One Nominee
Foreign Ownership Not allowed Not allowed Allowed Allowed Not allowed
Perpetual Existence No No Yes Yes Yes
Statutory Compliances Minimal Minimal Low High High
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FAQs (Frequently Asked Questions)

What is the tax to be paid by the sole proprietorship?

In sole proprietorship tax is to be paid according to slab rate for the relevant assessment year.

How many people are required to start a proprietorship?

To begin a Proprietorship, only one person is required and only one Promoter can have a Proprietorship.

Will my Proprietorship Firm have a separate legal entity?

The sole proprietorship is not a legal entity. A sole proprietorship can operate under its owner's name or it can conduct business under a fictitious name. The fictitious name is merely a trade name-it does not create a separate legal entity from the sole owner.

Is audit required for a proprietorship?

Proprietary companies are taxed as individuals under the Income Tax Act. In the case of a business owner, therefore, a tax audit is necessary if the sales turnover exceeds INR 1 crore.

Can I later convert my proprietorship into a company?

Yes, Proprietorship can be converted into a company.

What documents are required to start a sole proprietorship?
  • Aadhar Card
  • PAN Card
  • Registered Office Address- Rent Agreement / Electricity Bill
  • Photo
Will my proprietorship firm have a Certificate or Registration?

Proprietorship firms do not have a Certificate of Incorporation. These firms have a registration.

How is a sole proprietorship different from other company structures?

Sole proprietorship, also known as a sole trader, an independent businessman or a business owner, is a type of business that is owned and controlled by a single person and in which there is no legal distinction between the owner and the business entity.

Location
Address

Office No.3, 1st Floor, C-23, Sector-63, Noida, U.P 201301

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