Sole Proprietorship Firm Registration
A proprietorship firm, also known as a sole proprietorship, is the simplest and most common form of business structure owned and operated by a single individual.
In this type of firm, there is no legal distinction between the owner and the business entity. The owner provides the capital, controls all decisions, and receives all profits, but also bears unlimited liability for any debts or losses incurred by the business.
Setting up a proprietorship is relatively easy, cost-effective, and requires minimal regulatory compliance compared to other business structures like private limited companies or partnerships.
The firm can operate under the proprietor's name or a registered trade name. Typically, small businesses, freelancers, consultants, and traders prefer this structure due to its simplicity.
Benefits:
A proprietorship firm provides several advantages, especially for small businesses and individual entrepreneurs. It is easy and inexpensive to set up with minimal regulatory formalities. The owner has full control over decision-making, enabling flexibility and quick responses to market changes. Profits are entirely retained by the proprietor without sharing with partners or shareholders. Taxation is simple, as income is taxed as personal income. Furthermore, the business benefits from privacy since financial reports do not need to be made public.
Overall, a proprietorship firm is ideal for those seeking ease of operation, direct profit, and full control over their business.
Documents required for a One Person Company:
1. Identity Proof of Proprietor (any one):
Aadhaar Card/PAN Card/Voter ID/Passport/Driving License
2. Address Proof of Proprietor (any one):
Aadhaar Card/Passport/Voter ID/Utility Bill (Electricity/Water Bill)/Bank Statement
3. Registered Office Address Proof (any one):
Rent Agreement (if rented)
No Objection Certificate (NOC) from the property owner
Utility Bill (Electricity/Water Bill) not older than 2 months
4. Business Registration Certificates (as applicable):
Shop and Establishment Certificate (if applicable)
GST Registration (if turnover exceeds specified limits or as required)
MSME/Udyam Registration (optional but recommended)
5. Bank Account Proof:
Cancelled Cheque or Passbook Copy
Register your Sole Proprietorship@Just 2,499/- (Exclusive Govt. Fee)