{"id":191,"date":"2020-12-12T10:58:22","date_gmt":"2020-12-12T10:58:22","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=191"},"modified":"2020-12-12T11:51:56","modified_gmt":"2020-12-12T11:51:56","slug":"how-to-register-a-proprietorship-company-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/","title":{"rendered":"How to Register a Proprietorship Company in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Sole Proprietorship is the easiest form of entity to start up a business in India as it is not governed by any specific laws. It is owned by a single person and the compliance under it is minimal and easy to fulfil. It has no separate legal entity from its owner. So when it comes to how to register a <strong><a href=\"https:\/\/swaritadvisors.com\/sole-proprietorship-registration\" class=\"text-primary\">Sole proprietorship company in India<\/a><\/strong>, there are certain documents that are required for registering a proprietorship company.<\/p>\n\n\n\n<p>This article will provide you with the information regarding the documents that are required and the benefits that a proprietorship company has in India. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3351963cc6f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3351963cc6f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#What_is_a_Sole_Proprietorship_Company\" title=\"What is a Sole Proprietorship\nCompany?\">What is a Sole Proprietorship\nCompany?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#What_are_the_requirements_for_starting_up_of_Sole_Proprietorship_Business_in_India\" title=\"What are the requirements for\nstarting up of Sole Proprietorship Business in India?\">What are the requirements for\nstarting up of Sole Proprietorship Business in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#Documents_required_to_register_a_Proprietorship_Company\" title=\"Documents required to register\na Proprietorship Company \">Documents required to register\na Proprietorship Company <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#1_Aadhar_Card\" title=\"1. Aadhar Card \">1. Aadhar Card <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#2_PAN_Card\" title=\"2. PAN Card\">2. PAN Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#3_Bank_Account\" title=\"3. Bank Account \">3. Bank Account <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#4_Registered_Office_Proof\" title=\"4. Registered Office Proof \">4. Registered Office Proof <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#Sole_Proprietorship_Company_Registrations_Required\" title=\"Sole Proprietorship Company Registrations Required\">Sole Proprietorship Company Registrations Required<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#1_Registering_as_SME\" title=\"1. Registering as SME\">1. Registering as SME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#2_Shop_and_Establishment_Act_Licence\" title=\"2. Shop and Establishment Act Licence \">2. Shop and Establishment Act Licence <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#3_GST_Registration\" title=\"3. GST Registration\">3. GST Registration<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#Benefits_of_Sole_Proprietorship_Firm\" title=\"Benefits of Sole Proprietorship\nFirm \">Benefits of Sole Proprietorship\nFirm <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-register-a-proprietorship-company-in-india\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Sole_Proprietorship_Company\"><\/span>What is a Sole Proprietorship\nCompany?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A sole proprietorship is a one person company where a single person owns, manages and controls the operations of the business. Since no government registration is required, it is easy to form a sole proprietorship company. It does not require any government regulatory paperwork or compliance and nor does any fees is required for the start-up of this type of company. <\/p>\n\n\n\n<p>It does not\nrequire a minimum capital investment and the proprietor has his full control\nand ownership over the sole proprietorship company.&nbsp; The sole proprietor gets the advantage of tax\nbenefits and double taxation of the firm is prevented. The returns and taxes\nare to be paid only in the name of the sole proprietor and no separate income\ntax is required to be paid by the firm. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_requirements_for_starting_up_of_Sole_Proprietorship_Business_in_India\"><\/span>What are the requirements for\nstarting up of Sole Proprietorship Business in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are only\ntwo basic requirements for starting up a sole proprietorship business in India:\n&#8211; <\/p>\n\n\n\n<ol><li>Choosing a business name.<\/li><li>Selection of a location for a place of business.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_to_register_a_Proprietorship_Company\"><\/span>Documents required to register\na Proprietorship Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Documents-required-to-register-a-Proprietorship-Company-Heading-1.png\" alt=\"Proprietorship Company Documents required\" class=\"wp-image-195\" width=\"545\" height=\"279\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Documents-required-to-register-a-Proprietorship-Company-Heading-1.png 1000w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Documents-required-to-register-a-Proprietorship-Company-Heading-1-300x154.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Documents-required-to-register-a-Proprietorship-Company-Heading-1-768x394.png 768w\" sizes=\"(max-width: 545px) 100vw, 545px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Aadhar_Card\"><\/span>1. Aadhar Card <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To apply for the\nregistration of Proprietorship Company, Aadhar card number is necessary. The\nincome tax return can be filed if the PAN Card is linked with the Aadhar Card. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_PAN_Card\"><\/span>2. PAN Card<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The income tax return cannot be filed in the absence of a PAN Card. And a PAN Card is required at the time of proprietorship company registration to <strong><a href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\" class=\"text-primary\">file Income Tax Returns<\/a><\/strong>. Along with it, it is also necessary to get a GST registration number also.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Bank_Account\"><\/span>3. Bank Account <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The applicant\nfor the registration of a proprietorship company must also submit the bank\naccount number which is linked with the office transactions. He can also submit\nhis personal account number if he does not have a separate bank account for the\nbusiness. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Registered_Office_Proof\"><\/span>4. Registered Office Proof <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The applicant is required to provide a certified office proof for registration.&nbsp; If the property is rented then a rent agreement and a NOC from the landlord is required to be submitted. And if the property is Self-owned property then the electricity bill or any other address proof is required to be submitted. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sole_Proprietorship_Company_Registrations_Required\"><\/span>Sole Proprietorship Company Registrations Required<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A proprietor of a sole\nproprietorship company is required to obtain few registrations to operate his\nbusiness function smoothly.  <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Registrations-Required-Heading.png\" alt=\"Registrations Required\" class=\"wp-image-196\" width=\"506\" height=\"327\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Registrations-Required-Heading.png 1000w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Registrations-Required-Heading-300x194.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2020\/12\/Registrations-Required-Heading-768x497.png 768w\" sizes=\"(max-width: 506px) 100vw, 506px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Registering_as_SME\"><\/span>1. Registering as SME<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The proprietor can get itself registered as a Small and Medium Enterprise (SME) under the MSME Act. It is not mandatory to register as an SME but it provides benefits to the applicant at the time of taking a loan for his business. And the government has initiated various schemes for SME\u2019s in which the loan can be provided at concessional rate of interest. Such an application can be filed electronically. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Shop_and_Establishment_Act_Licence\"><\/span>2. Shop and Establishment Act Licence <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even though this\nlicense is not mandatory at all the places but it is needed to be obtained\naccording to the local laws. The <strong>Municipal\nParty<\/strong> issues this license on the basis of the number of employees. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_GST_Registration\"><\/span>3. GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the annual turnover exceeds 20 lakh then the proprietor must get registered under GST registration. Documents that are required under the <strong><a href=\"https:\/\/swaritadvisors.com\/gst-registration\" class=\"text-primary\">GST registration<\/a><\/strong> are: &#8211; <\/p>\n\n\n\n<ol><li>Aadhar Card, PAN Card and photograph of the proprietor<\/li><li>Proof of the business place. If rented then Rent agreement and if the self-owned property then electricity bill. <\/li><li>Bank statement copy<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Sole_Proprietorship_Firm\"><\/span>Benefits of Sole Proprietorship\nFirm <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Overall control of the owner.<\/li><li>No minimum capital investment.<\/li><li>Proprietor solely gets profit.<\/li><li>Tax assistances avert double taxation.<\/li><li>The proprietor has to file an only annual tax return and pay tax as an individual.<\/li><li>No separate tax for the company.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Sole Proprietorship Company is a perfect option for an entrepreneur who wants to start a company of his own without any long process of forming it. However, an entrepreneur needs to register a proprietorship company in India and the process of registering a company has been discussed above.  No long registration process is required for the establishment of a proprietorship firm. It provides many advantages if a person wishes to start up a company of his own. A sole proprietorship company has a more straightforward operational functioning because only one person is required to create and manage the company.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/choose-the-correct-form-of-entity-for-your-startup\/\">How to Choose the Correct Form of Entity for Your Startup?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Sole Proprietorship is the easiest form of entity to start up a business in India as it is not governed by any specific laws. It is owned by a single person and the compliance under it is minimal and easy to fulfil. It has no separate legal entity from its owner. So when it [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[71],"tags":[89],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/191"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=191"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/191\/revisions"}],"predecessor-version":[{"id":209,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/191\/revisions\/209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/193"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}