Proprietorship Firm Registration
Do you also wish to start your own business? Get your sole proprietorship registered.
Pay just Rs. 99 and remaining payment when documentation begins.
Do you also wish to start your own business? Get your sole proprietorship registered.
Pay just Rs. 99 and remaining payment when documentation begins.
Udyog Aadhar Registration
?Udyog Aadhar Registration for small business entities to avail various government benefits and schemes.
Call, Chat, Email Support
?Contact us at call, chat or mail for updates and guidance.
No hidden charges
?LEGALDISHA provides you transparency in charges. No hidden extra cost required.
Free Business Consultation By expert
?Get free business consultation from highly experienced experts team.
Udyog Aadhar Registration
?Udyog Aadhar Registration for small business entities to avail various government benefits and schemes.
GST Registration
?Get your business registered under GST to avail credit for the tax paid on business purchases.
Call, Chat, Email Support
?Contact us at call, chat or mail for updates and guidance.
No hidden charges
?LEGALDISHA provides you transparency in charges. No hidden extra cost required.
Free Business Consultation By expert
?Get free business consultation from highly experienced experts team.
Udyog Aadhar Registration
?Udyog Aadhar Registration for small business entities to avail various government benefits and schemes.
GST Registration
?Get your business registered under GST to avail credit for the tax paid on business purchases.
Trademark Application & Objection Reply (if any)
?Trademark refers to registration of brand name for protection from infringement. We will provide you with trademark application filing of band name along with objection reply filing (if any). Package excludes hearing charges (if any).
Call, Chat, Email Support
?Contact us at call, chat or mail for updates and guidance.
No hidden charges
?LEGALDISHA provides you transparency in charges. No hidden extra cost required.
Free Business Consultation By expert
?Get free business consultation from highly experienced experts team.
1. Fill the form and make nominal payment.
2. Our experts will collect and verify the necessary documents.
3. Make the balance payment.
4. Preparation and filing of application along with all the documents.
5. You will receive all the registration documents.
Self-attested Aadhar Card & Self Attested Pan Card of proprietor.
Passport Size photograph of proprietor.
Photograph of premise with firm’s name.
Bank Statement with latest entries or First page of Passbook of proprietor.
A sole proprietorship firm is setup by an individual. When an owner begins operating his business with opening of current account on his own name or in the name of proprietorship firm.
Proprietorship firms is a most common form of business, also it is an easy form of business to start.
Decision making in a proprietorship firm is faster than other form of business.
Sole proprietorship firm is not registered under any government authority thus there is very minimal amount of compliances required for it.
Unlike other forms of business profit gained in sole proprietorship business wholly belongs to the proprietor.
There is no legal entity recognition and the business owner and the proprietorship firm both are the same person for all legal purposes and requirements.
There is no separate PAN card for proprietorship firm. The PAN card of the business owner is used for the proprietorship firm.
Proprietorship firm can not be track online However, if a proprietor has taken GST registration or Trademark or MSME (udyam aadhar registration) then filing status of the proprietorship can be track on the respective official portal to make sure the existence of the proprietorship firm.
Any Indian citizen who has attained 18 years of his age may become an sole trader and start an sole proprietorship concern.
No, There are no separate licenses to be obtained to form a sole proprietorship. The sole proprietorship will be maintained so long as the owner keeps doing business.
Sole Proprietorship firm /Sole trader business to run through smoothly may voluntarily take following license /registration:
Following KYC Documents of a firm Proprietor are required sole proprietorship registration documents:
Following are reasons why we should obtain additional voluntary license-
Sole proprietor is required to file annual tax return with the income tax department only.
Liability of the Sole proprietor is unlimited. He himself shall be personally liable for the payment of all the losses so incurred.
Yes, LLP and private limited company, sole proprietorship concern is also required to file income tax return.
No, sole trader business does not have perpetual existence and thus the existence of the concern shall comes to an end after the death of the proprietor.
Sole proprietorship concern cannot be transferred like company or LLP, transfer of assets and liability can take place but business registration and other registrations being in the name of firm proprietor cannot be transferred.
No, sole proprietorship concern does not have any obligation to disclose its financial reports to the public like other business forms.
No, every sole proprietorship concern does not required audit. Only those concern which are covered under the threshold limit are required to conduct audit through practicing Chartered Accountant.
Sole proprietorship firm as business entity shall be more beneficial for budding entrepreneurs and the ones who are getting into business for the first time and ventures with a lower amount of clients.
Yes, sole proprietorship concern can take GST registration without crossed the threshold limit.
BASIS OF DIFFERENCE | PRIVATE LIMITED COMPANY | ONE PERSON COMPANY | LLP | PARTNERSHIP FIRM | PROPRIETORSHIP CONCERN |
|---|---|---|---|---|---|
| Meaning | Private Limited Company Private company means a company which is formed by coming together of people for a profit motive. |
One Person Company One Person Company (OPC) means a company which is formed with only single person as a member. |
LLP LLP is a body corporate which is hybrid of partnership firm and company. |
Partnership Firm A partnership firm is not a separate legal entity distinct from its partners. It is merely a collective name given to the individuals composing it. |
Proprietorship Firm Proprietorship is a type of business that is owned, managed, and controlled by one person – who is the proprietor. |
| Prevailing laws | Companies Act Companies are governed by ‘Companies Act, 2013’& rules made under. |
Companies Act Companies are governed by ‘Companies Act, 2013’ & rules made under. |
LLP Act Limited Liability Partnership are prevailed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under.
|
Partnership Act Partnership is prevailed by ‘The Indian Partnership Act, 1932’ and various Rules made there under.
|
NA |
| Charter Documents | MOA & AOA Memorandum and Article of Association is the charter of the company which provides its main object clauses & scope of operation. |
MOA & AOA Memorandum and Article of Association is the charter of the company that defines its scope of operation. |
LLP Agreement LLP Agreement is a charter document of the LLP which denotes its scope of operation and rights and duties of the partners vis-à-vis LLP. |
Partnership Deed Partnership Deed is a charter document of the firm which denotes its scope of operation and rights and duties of the partners. |
MSME (Udyam Aadhar) Udyog Aadhar (MSME) is certificate which signifies that the entity is micro, small or medium enterprise. |
| Limit of Members | 2-200 It must have at least 2 and maximum 200 members. |
1 OPC is manages by one person only hence it requires only single person. |
2-Unlimited There is no maximum limit on number of partners but must have at least two individuals as Designated Partners. |
2-20 At least 2 partners are required for it and which can’t exceed 20 partners. |
1 Single owner i.e. proprietor required for Proprietorship firm. |
| Directors /Designated Partners | 2-15 It requires At least 2 Director and maximum 15 and further can be increased by special resolution. |
1-15 It required At least 1 Director and maximum 15 and further can be increased by special resolution. |
2-Unlimited Minimum 2 designated partners and there is no maximum limit for LLP. |
NA |
NA |
| Separate legal identity | Yes Company has separate legal identity from its subscribers of MOA. |
Yes Being single owner still have separate legal identity from the company. |
Yes LLP has separate legal identity from its partners and designated partners. |
No Partners and the partnership firm are treated as single identity. |
No Proprietor and proprietorship concern have same legal identity. |
| Limited Liability | Yes The liability of Members are limited up to the amount of share capital which is subscribed by them. |
Yes The sole Member of the company is liable only up to the amount of capital introduced by him. |
Yes Designated Partners and Partner’s liability is restricted to the amount of capital contribution as mutually decided at the point of Agreement. |
No Partners are jointly and severally liable for any liability of the firm as their liability is unlimited. |
No Single owner has unlimited liability for any losses or debt in the proprietorship concern. |
| Perpetual Life of the entity | Yes Entity’s life is not based on the shareholder’s life. It continues by changing of the owner’s share. |
Yes In case of death of the shareholder the company is run by the nominee of the company. |
Yes On death of partner or designated partner, Share of them will be transferred to their legal heir but this may not result in dissolution. |
No It does not have perpetual succession as this depends upon the will of partners. |
No Perpetual existence does not exist with the death of the proprietor concern. |
| Annual Statutory Compliance | High Annual Filling of Company, Directors compliance, Audit, Income tax Return, Meeting and other Filling GST compliances. |
High Annual Filling of Company, Directors compliance, Audit, Income tax Return, Meeting and other Filling GST compliances. |
Low Annual Filling, Income tax Return, GST compliance is to be required and Audit is not mandatory. |
Low Income tax Return and GST compliance Audit in case of Turnover crosses the limit. |
Lowest Compliance with Income tax and GST only(if any). |
| Transferability | Yes Shares are easily transferable from one to other. |
Yes Share can be transferred by one person to other but nominee needs to be changed. |
Yes Addition and deletion of partners are possible through change in share of capital contribution. |
Yes Addition and removal of partner is possible new deeds with the changes in capital and profit sharing needs to be done. |
No It cannot be transferred. |
| Foreign Direct Investment (FDI) | Yes FDI is available under automatic route. |
No Single owner hence FDI is not possible and not allowed. |
Yes FDI is permitted subject to prior approval by the central government. |
No FDI is not permitted in partnership firm. |
No Small scale Business organization hence no FDI is permitted. |
