Sole Proprietorship Firm Registration Online
Our simple and intuitive platform offers an easy, fast, and cost-effective solution for your sole proprietorship business. Let us take care of the legal work so you can focus on growing your business. Sign up today!
 Swift |
 Professional |
 Precise |
 One Stop |
SOLE PROPRIETORSHIP REGISTRATION
Sole proprietorship is the simplest form of business ownership, where a single individual owns and runs a business. It is an attractive option for those who want complete control over their business and don't want to share profits or decision-making with others. As a sole proprietor, you can enjoy the benefits of low start-up costs, easy tax filing, and flexibility in decision-making.
WHY CHOOSE SUPERCA?
Personalized Attention with Tailored assistance throughout filing process.
Value for Money with maximized refunds and no hidden charges.
Client Confidentiality with Data privacy and adherence to legal guidelines.
Excellent Customer Support with 24x7 support and expert guidance.
Personalized Attention with Tailored assistance throughout filing process.
Value for Money with maximized refunds and no hidden charges.
Client Confidentiality with Data privacy and adherence to legal guidelines.
Excellent Customer Support with 24x7 support and expert guidance.
Choose Your Plan
BASIC PLAN
₹1500+GST
GST REGISTRATION CERTIFICATE
E-WAY BILL PORTAL REGISTRATION
GST INVOICING FORMATS
3 MONTHS FREE RETURN FILING
CURRENT ACCOUNT OPENING SUPPORT
SUPPORT REGARDING GST RATES/ HSN
DEDICATED GST & EWAY BILL EXPERT FOR FIRST 3 MONTHS
₹1500/- PLUS GST
PREMIUM PLAN
₹2500+GST
GST REGISTRATION CERTIFICATE
MSME / UDYAM REGISTRATION
E-WAY BILL PORTAL REGISTRATION
GST INVOICING FORMATS
3 MONTHS FREE RETURN FILING
CURRENT ACCOUNT OPENING SUPPORT
SUPPORT REGARDING GST RATES/ HSN
DEDICATED GST & EWAY BILL EXPERT FOR FIRST 3 MONTHS
₹2500/- PLUS GST
ADVANTAGES OF SOLE PROPRIETORSHIP
LEGALLY RECOGNIZED
The Proprietor will be legally recognized as a Supplier of Goods & Services
INPUT TAX CREDIT
The proprietor can claim the Input tax credit (tax paid on the purchase of goods & services)
INTERSTATE SALES
He can make Interstate sales without restrictions• The proprietor can have a competitive advantage in comparison to other businesses
LESS COMPLIANCE
In GST, the number of compliances are less as it has replaced all other indirect taxes
PASS THE CREDIT
The proprietor can pass on the credit of the taxes paid on the supply of the goods & services to the purchaser.
COMPOSITION SCHEME
Small businesses ( having turnover of less than 1 crore) can opt for composition scheme to lower their taxesWAYS TO REGISTER A SOLE PROPRIETORSHIP
Let’s now understand how an individual can register for sole proprietorship in India. Regardless of the fact that a sole proprietorship does not need any separate registration as such, in order to establish the existence of the business the proprietor is advised to get a few registrations :
➤ Registration under Shop and Establishment Act
Registration of your business under the Shop and Establishment Act will provide you the license or the right of doing business in your locality/state. The registration process is state-wise dependent and you need to check the specific state-wise requirement.➤ Udyog Aadhaar under Ministry of MSME
A sole proprietor can apply for Udyog Aadhaar under the Ministry of MSME. For proprietors, it enhances the chances of the business to get future loans, an upper hand in various other legal matters and can avail the benefits of the various schemes introduced time-to-time.➤ GST registration
As per the GST rules, every business/entity that is involved in the buying and selling of goods/services have to register for GST. It is mandatory to get registered under GST if the turnover exceeds the threshold limit of Rs 40 lakhs for trading and manufacturing or 20 lakhs for service industry (Rs 10 lakhs for special category states). Further, if anyone wants to get registered voluntarily even if the turnover is less than the threshold, they can always choose to do so. By getting GST registration, you can keep an eye on your taxation through all the transactions made in the name of the business.Lists of businesses best suitable for Sole Proprietorship
Retail Traders
Businesses involved in retail trading tasks, for instance household or electric goods, grocery selling, general shop, merchandise, sweets shop etc. can be done being a sole proprietor. The capital requirements and investments are minimal in this case which promotes the individual in choosing sole proprietorship.Repair & maintenance Services
Services related to repair and maintenance of automobiles, household appliances, electronic machineries etc. which are frequently provided at local shops, consumer places or garage can be the best suitable sole proprietorship business.Small Scale home businesses
Small scale home businesses involve less risk that best matches with sole proprietorship business structure.Local Transportation Services
The local transportation services like auto, e-rickshaw or mini buses require very less capital and just few employees that can suit the interest of sole proprietorship business type.Software Consultancy services
These services require basic system equipment and can be single-handled with minimal investment.Tutoring services
Tutions are often provided by proprietors at home or at another suitable place. These services can be provided being a proprietor and thus enjoying the whole sum of profit.Freelance Writers
Freelancers are independent & can operate from home also. This does not require an organized form of business and they can easily go for sole proprietorship.Clinic & medical management facilities
In most cases, clinics and small healthcare businesses in their initial stage start as a sole proprietorship business.Sole Proprietorship vs One-Person Company
OPCs & Sole Proprietorship are two distinct business structures but many-a-times people get confused between the due and assume both to be the same. Let’s distinguish them on the below parameters.
| Parameter | |||
|---|---|---|---|
| Registration | In OPC, the company can be registered under MCA and Companies Act, 2013, whereas Sole Proprietorship Registration is not compulsory in general. It does not require any formal registration as such as it is identified through alternate registrations, such as GST registrations. A proprietor can register if he wants to register his company. | ||
| Legal Status | Unlike a partnership firm or corporation, sole proprietorship does not have any separate legal identity. It is a limited business structure that connects the business and the business owner. Proprietor and business are indistinguishable from a tax and legal point of view. OPC on the other hand is treated as a private company having a separate legal entity. It has the advantage of corporate status in society. | ||
| Compliance | In case of a one person company, the compliances are much more strict than proprietorship. This is because the company has to register annual returns, get its accounts audited, and meet other compliances of a Private Limited Company. It would also have to get accounts edited in the same manner as done by a private limited company. Whereas, In a sole proprietorship, In a sole proprietorship, the owner only needs to file the annual returns and the firm is required to get accounts audited only if the annual turnover crosses the threshold limit as specified under the provisions of the Income Tax Act. | ||
| Liability | Since, One Person Company is a separate legal entity, the owner has liability limited to the extent of share capital, in case the business suffers a loss. This is the most attractive reason why many individuals are opting for an OPC. Whereas, a sole proprietorship’s liability is unlimited, which means all the assets of the individual will be attached and there is no limitation on the liability. Also, Liability extends to his personal belongings as well. | ||
| Conversion | Conversion of Sole Proprietorship to Private Limited Company is possible but it’s a bit tiresome process. Whereas, the conversion of OPC to Private Limited Company is comparatively easy. OPC has to convert itself into a Private Limited Company if its paid-up share capital exceeds Rs.50 Lakhs and if its average turnover of any three consecutive financial years exceeds Rs.2 Cr. | ||
| Succession | In a sole proprietorship firm, since there is no distinction between the business firm and the owner, the succession is possible only through an execution of the will. Whereas, one person company must have a nominee designated by its members for the purpose of succession. Only a natural born citizen and a resident of India shall be eligible to be a nominee who in case of death of the member shall take his/her place. OPC is not affected by the death of the member and has continued succession. | ||
FREQUENTLY ASKED QUESTIONS About Sole Proprietorship
No, it's not mandatory but in order to open up a bank account you need GST Registration certificate
No, it's not mandatory
• Lack of Resources.
• Unlimited Liability.
• Lack of Credibility.
• Cannot raise funds easily.
• Cannot add Partners.
• Unlimited Liability.
• Lack of Credibility.
• Cannot raise funds easily.
• Cannot add Partners.
There are only two Compliances for Proprietorship
GST Return
ITR Return
There is no minimum capital requirement
Sole proprietorship business does not need any specific registration. However, the owner is advised to get a few essential registrations to make the business function in a better way like registration in Shop and Establishment Act, a GST registration or a Udyog Aadhaar under MSME
We know the fact that registration in this field is not a cup of tea as the information is always scattered across different sites. Super CA is always here to assist you. Our team comprises legal experts, advisors, professional CAs and CSs who are always there with you in every course of action. We guarantee a hassle-free quick & easy process with 100% accuracy in documents at minimum possible cost.
In general, It is optional and it does not require any formal registration as such as it is identified through alternate registrations, such as GST registrations, but a sole proprietor must open a bank account in the name of the business. It is not a corporate or legal entity. As per the law, it is not mandatory but banks insist on getting sole proprietorship registered if you want to open a bank account in the name of your business.
