The sole owner has 100% control, ensuring quick decision-making, ideal for small to medium enterprises.
End-to-End Business Consulting Made Easy
Expert Solutions, Tailored for Success
Seamless Solutions, Always.
Expert Guidance
Simplified process with professional support.
Comprehensive Filing
Complete documentation and filing done in one go.
Post Registration Support
Seamless registration and compliance management.
Choose the Right Plan For Your Business
We offer cost-effective packages designed to meet your specific business requirements.
Starter/Lite
Ideal for initiating company registration
Starts from
₹1,499
What you'll get
Expert assisted process
Tax Advantages
Standard
For registration and tax filings
Starts from
₹3,499
What you'll get
Expert assisted process
GST registration
MSME registration (Udyam)
GST filing for one financial year (upto 300 transactions)
Premium
For registration and tax filings support
Starts from
₹5,499
What you'll get
Expert assisted process
GST registration
MSME registration (Udyam)
GST filing for one financial year
(upto 300 transactions)
ITR filing
Key Advantages of Sole Proprietorship
Join the community of entrepreneurs who trust LastMin Advisors for their business needs.
Easy to Start
Setting up a sole proprietorship is quick and requires minimal paperwork or government approvals.
Easy Compliance
Managing taxes and other legal requirements is easier compared to other business structures.
Tax Advantages
Sole proprietors enjoy single-layer taxation and take advantage of slab based taxation, saving money.
Full Control
You make all decisions without needing approval, ensuring fast action and complete ownership.
Low Costs
Operating a sole proprietorship is budget-friendly, ideal for small businesses and startups.
Flexible Hiring
Easily hire employees or consultants as your business grows.
Eligibility Criteria for Proprietorship Registration
Check the criteria to make sure you are properly aligned.
The checklist for registering a sole proprietorship in India are:
Age Requirement: The applicant must be at least 18 years old.
Citizenship: Only Indian citizens are eligible for sole proprietorship registration.
Legal Capacity: The applicant must have the capacity to enter into a legal contract.
No Legal Disabilities: The proprietor should not have any legal disabilities, such as mental incapacity.
No Bankruptcy or Felony Record: Applicants must not be declared bankrupt or have a prior conviction for a felony.
Clear Business Purpose: The business objective must be clearly defined and outlined during registration.
Lawful Business Activities: The business must involve legal activities and not deal in prohibited or illegal goods and services.
Unique Business Name: The business name should be original and not already registered with any other entity.
Documents Required for Proprietorship Registration
Note: The mentioned necessary documents might differ from state to state. Make sure to reach out to our experts for clear inputs.
To successfully register a sole proprietorship, the following documents are required:
Identity Proof
Aadhaar Card of the sole proprietor
Permanent Account Number (PAN) Card or any other valid government-issued ID proof.
Bank Account Details
Bank account in the name of the proprietorship for business transactions.
Business Address Proof
Address proof of the business premises (e.g., electricity bill, utility bill, or sale deed for self-owned property).
Rental agreement if the business operates from a rented space.
NOC (No Objection Certificate) from the landlord in case of a rented property.
Licenses and Registrations (if applicable)
Trade license or any applicable business certification required for the nature of your business.
Certificate of registration under the Shop and Establishment Act (if applicable).
GST Registration
GST number or GST certificate, if applicable, depending on your business turnover or inter-state trade activities.
Other Supporting Documents
Any additional document relevant to the business activity or specific compliance requirements.
Steps for Sole Firm Proprietorship Registration
With these steps, setting up your sole proprietorship is easy and efficient. Let us handle the process while you focus on building your business!
Choose and Register Your Business Name
Select a unique and meaningful business name that reflects your offerings.
Ensure the name is not already registered.
Our team can assist you in completing the business name registration process seamlessly.
Open a Current Bank Account
Open a zero-balance current account in your business name.
This step is essential to separate your personal and business finances.
Obtain PAN, GST, and MSME Registration
PAN Card: Ensure you have a PAN card to manage tax filings.
GST Registration: Register under the GST Act if required, especially for inter-state sales or turnover above the prescribed limit.
MSME Registration: Register as an MSME (Udyam Certificate) to avail benefits like subsidies, tax rebates, and loans.
Procure Necessary Licenses and Compliances
1.Acquire licenses based on your business type, such as:
FSSAI License (for food businesses).
Shop and Establishment Act License (for retail or service businesses).
2.Register under ESIC (Employee State Insurance Corporation) or EPFO (Employee Provident Fund Organization) if employing staff.
File for Sole Proprietorship Registration
Prepare and submit required documents, such as:
Aadhaar and PAN cards of the proprietor.
Business address proof (rental agreement, utility bill, etc.).
NOC from the landlord (if applicable).
Relevant business licenses.
Our experts handle the registration filing, ensuring accurate and timely approvals.
Post-Registration Services and Compliance
Obtain certifications under the Shop and Establishment Act of 1947, if applicable.
Get support for GST filing, income tax returns, and trademark registration for brand protection.
Stay compliant with labor laws and other regulatory requirements to avoid penalties.
Post Registration Compliances on Sole
Proprietorship Registration
The checklist for registering a sole proprietorship in India are:
Tax Audit
Requirement:
If the annual turnover exceeds ₹1 crore, a tax audit is mandatory.
Process:
Consult experienced chartered accountants to handle regulatory compliance, tax benefits, and return filing effectively.
Bookkeeping and Accounting
Threshold:
A book of accounts must be maintained if turnover exceeds ₹25,00,000 or income crosses ₹2,50,000 in any of the three preceding years.
Importance:
Proper bookkeeping ensures transparency and compliance with tax laws.
Filing GST Returns
Requirement:
GST returns must be filed if the annual turnover exceeds ₹20 lakhs (₹10 lakhs for specific states).
Frequency:
Returns need to be filed monthly, quarterly, or annually based on the business's GST category.
Compliance with Labour Laws
Applicability:
If employees are hired, the proprietor must comply with Indian labor laws, including:
Minimum wage regulations.
Employee benefits such as PF (Provident Fund) and ESIC (Employee State Insurance).
Adherence to working hours and other labor requirements.
Filing TDS (Tax Deducted at Source) Returns
Requirement:
TDS returns must be filed on time to avoid penalties.
Forms to Use:
Form 27Q: For TDS deducted from non-residents or foreign companies.
Form 26QB: For TDS on the payment for transfer of immovable property.
Form 26Q: For TDS on all other cases.
Form 24Q: For TDS on salaries.
Professional Tax Registration
Applicability:
Proprietors must register for professional tax if their income exceeds the specified threshold.
Requirement for Employers:
Obtain a Professional Tax Registration Certificate (PTRC) to deduct and pay professional tax for employees.
The Legal Status of Sole Proprietorship
A sole proprietorship is an unincorporated business structure owned and operated by a single individual. Its legal status in India has specific characteristics:
Not a Separate Legal Entity
A sole proprietorship is not distinct from its owner. The business and the owner are considered the same entity under the law, meaning:
Assets cannot be registered under the sole proprietorship’s name.
The owner bears full responsibility for all business liabilities.
Legal Liability: Can Sue or Be Sued
In legal matters, the sole proprietorship cannot sue or be sued as a separate entity.
Any litigation is filed in the proprietor's name.
The owner is personally liable for all legal claims or disputes involving the business.
Minimal Legal Formalities
A sole proprietorship is not distinct from its owner. The business and the owner are considered the same entity under the law, meaning:
Assets cannot be registered under the sole proprietorship’s name.
The owner bears full responsibility for all business liabilities.
Not a Taxable Entity
A sole proprietorship is not considered a separate taxable entity.
The income generated by the business is taxed under the sole proprietor’s name.
The owner reports business income and expenses on their personal tax returns, simplifying compliance.
Listed Tax Implications of Sole Proprietorship
A sole proprietorship is a straightforward business model best suited for individuals looking for full control with minimal legal complications.
Filing Income Tax Returns
Taxation Basis: Sole proprietors are taxed on their net income (total revenue minus allowable deductions).
Filing: The income is reported under the owner’s personal income tax return.
Self-Employment Tax: Sole proprietors must pay self-employment tax, which covers contributions to social security and Medicare.
Self-Employment Tax
Purpose: This tax substitutes the social security and Medicare taxes paid by employees.
Applicability: Mandatory for all sole proprietors with taxable business income.
Goods and Services Tax (GST)
When Required:
If turnover exceeds ₹20 lakhs (₹10 lakhs for special states).
For inter-state sales or e-commerce activities.
Compliance: GST registration and periodic GST return filing are necessary for businesses selling goods or services.
Employment Tax or TDS Returns
Applicability: If employees are hired, proprietors must:
-Deduct Tax at Source (TDS) on salaries and other payments.
-File TDS returns on time to avoid penalties.
Common TDS Forms:
Form 24Q: For TDS on salaries.
Form 26Q: For other TDS deductions.
Sole Proprietorship vs. Other Business Structures:
A Comprehensive Comparison
When starting a business, selecting the right business structure is a critical decision. Each structure has its unique features, benefits, and limitations. Here's a detailed comparison between sole proprietorship, LLP (Limited Liability Partnership), and Partnership to help you make an informed choice.
Sole Proprietorship
Ease of Establishment
Simplest and fastest business structure to set up.
Minimal paperwork and legal formalities required.
Registration is optional in most cases but recommended for credibility.
Liability and Risk Exposure
The owner has unlimited liability and is personally responsible for all debts and losses.
No legal distinction between the owner and the business.
Taxation and Compliance
Income is taxed as part of the owner’s personal income under the Income Tax Act.
No separate tax filing is required for the business.
Regulatory Compliance and Reporting
Low compliance burden.
No requirement to file annual returns or financial statements with regulatory authorities.
LLP
Ease of Establishment
More complex to establish compared to a sole proprietorship.
Requires filing Articles of Incorporation and other documents with the State or Ministry of Corporate Affairs (MCA).
Online registration via the MCA portal is mandatory.
Liability and Risk Exposure
Provides limited liability protection for partners.
Partners' personal assets are protected against business debts and liabilities.
Taxation and Compliance
Taxation is separate from the partners under the Income Tax Act, 1961.
LLPs are taxed at a flat rate of 30% on their profits.
Regulatory Compliance and Reporting
Must file annual returns and financial statements with the MCA.
Statutory audit is mandatory if the turnover exceeds ₹40 lakh or contributions exceed ₹25 lakh.
Partnership
Ease of Establishment
Involves drafting and filing a Partnership Deed outlining the roles, responsibilities, and profit-sharing ratio of partners.
Registration with the Registrar of Firms is required.
Filing with the MCA is essential for legal recognition.
Liability and Risk Exposure
Partners share liability, which is usually unlimited, unless specified as a Limited Partnership.
Each partner is jointly responsible for debts incurred by the firm.
Taxation and Compliance
Taxed as a separate legal entity.
Profits are shared among partners and taxed at a flat rate of 30% with additional surcharges if applicable.
Regulatory Compliance and Reporting
Annual filing with the Registrar of Firms may be required depending on state laws.
Statutory audits are mandatory for firms with turnover exceeding prescribed limits.
LastMin Advisors makes sure everything is perfect
From Documents to Compliance: Complete Solutions for Sole Proprietorship Registration.
Access to Top Incorporation
Experts
Our experienced advisors specialize in sole proprietorship registrations and will guide you throughout. Our team is just a phone call away, ready to provide personalized support.
One-Stop Solution for
All Registrations
In addition to sole proprietorship registration, we assist with GST filing, MSME registration, trademark registration, and more. From Paperwork to Profit all seamlessly done.
Post-Incorporation Support
Our relationship doesn’t end with registration. We provide ongoing support for tax filing, compliance, and other legal services to keep your business running smoothly.
Quick Turnaround Time
At LastMin Advisors, we value your time. Our streamlined processes ensure that your sole proprietorship is registered swiftly without compromising on quality.
FAQS
Everything You Need to Know, We’ve Got You Covered