As two registrations in the name of the proprietorship firm are required as proof of entity and the address, we have made a combo package to start the proprietorship firm.
Here are the steps to start a Sole Proprietorship:
A sole proprietorship is a single-owner business and is the simplest in which the sole owner infuses all its capital and, therefore, is entitled to all of its profits and losses. The proprietorship firm and the proprietor are one and the same thing. There is no distinction between ownership and management. There is a requirement for incorporation or registration of the sole proprietorship as such. However, certain common registrations such as GST, MSME, etc, are generally obtained for the firm.
While sole proprietorship is the simplest form of business and is less regulated, it is only available for Indian Citizens and Natural Persons of eighteen years of age. Foreigners can not establish sole proprietorships. However, there is an exception in the case of NRI and OCI, they are allowed to establish proprietorship.
As mentioned earlier, there is no need for registration or incorporation for a proprietorship firm. However, to conduct the proprietorship business, certain basic registrations, such as GST, MSME, or IEC, may be obtained. The following list of required documents is crucial for these registrations.
The Proprietorship Registration process in India is the easiest and simplest among all business structures. There is no requirement for a formal incorporation. You can start your business immediately after you have fulfilled all the minimum requirements mentioned above. However, you must take specific mandatory registrations to establish your firm’s legal existence after beginning business operations. Navigate the steps below to complete the Sole Proprietorship Registration process in India.
To open a bank account for the sole proprietorship firm, you must contact any national bank. They would insist on two documents with the name of the sole proprietorship firm and address. Where one document is taken as proof of entity, the other is the address proof. These requirements are part of the KYC requirements prescribed by the RBI.
The government fees include the registration fee charged by the Registrar of Companies for Pvt Limited company registration, stamp duty levied by the concerned state government (which may differ from state to state), and the cost of making the DSC. By partnering with Setindiabiz, you can ensure a smooth process and minimise associated costs.
The RBI regulations regulate the banks and must adhere to the KYC-related requirements as prescribed from time to time. We can help you arrange the necessary registration, as discussed above.
Both Sole Proprietorships and One-Person Companies are single-owner business structures. In the table below, we have comprehensively compared proprietorship firm registration with one-person company registration. This will help you make an informed decision while choosing between the two single-owner business entities.