What Finology Offers:

Expert guidance on all aspects of a proprietorship firm
Process and scrutinise all relevant documents
Filing of the required forms with requisite fee

What is a Sole Proprietorship Firm?

A proprietorship firm is the most common form of business structure in India. Every other business in India is run as a proprietorship firm. In this form of business, a single individual is registered as the proprietor of the firm and all documentation and formalities of the business are done in his name only. The proprietor enjoys absolute control over the business and there are negligible legal compliances to be followed as a proprietorship does not have to follow separate compliances from its proprietor. Both, the proprietor and the firm are considered a single entity and hence there are no separate compliances for the business. As a result, all the assets and liabilities of the firm are that of the proprietor in his personal capacity and his liability is unlimited. 

How is a Proprietorship formed?

There are no legal compliances to be undertaken to start a proprietorship firm. The owner needs to select a name and a location for the firm. However, the firm is recognised through –

  • Opening up of a separate bank account.
  • GST registration in the name of the firm.
  • MSME registration (optional).

Advantages of Sole Proprietorship

  • Easy formation with least compliances.
  • Taxation in slabs (as return filing will be in the name of individual).
  • Full control over the business.
  • Ensures flexibility of operations.
  • Audit is mandatory only under certain circumstances.
  • Easy to dissolve.

Steps Involved in registering a Sole Proprietorship

  • Apply for PAN (and TAN if required)
  • Open a Bank account in the name of the firm
  • Apply for GST number (mandatory, if certain conditions are fulfilled)
  • Entrepreneur should also register as a MSME to avail various benefits. 

Documents Required

  • Id proof of the proprietor.
  • Address proof.
  • Proof of birth (for PAN) - 10th mark-sheet/passport/matriculation certificate.
  • Bank details (for MSME) registration.

What will you get?

Advantages of Choosing Finology

Quick & Efficient

Utmost attention given to details. Ready to use templates. Saves time. Minimizes costs.

Convenient & Transparent

Access to requisite information at any time of the day. Just a click away.

End-to-End hand-holding

Client communication at the core. Professional and efficient handling of client's information because a happy client is the best referrer.