RandL Legal Services Pvt. Ltd.

Start Business /Sole Proprietorship Registration

A sole proprietorship is a business entity where a single individual owns and runs the business. Though it is the simplest and most common form of business structure in India, there are certain steps that must be followed to ensure that the registration process is completed correctly and to avoid any legal issues while running the business. It is important to note that, there are ongoing compliance and reporting requirements that need to be met as the business moves forward.

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Sole Proprietorship Registration

Selecting a Name

The first step in registering a sole proprietorship is choosing a business name that is unique and not similar to the names of any existing business. The name must also comply with the rules and regulations laid down by the Registrar of Companies.

IT Registration

The next step in the registration process is to obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These numbers are required for income tax purposes and must be obtained prior to registering the business.

Trade License

A trade license has to be obtained from the municipal corporation or the local government office having jurisdiction over the area where you intend to operate the business.

GST Registration

Registration with the Goods and Services Tax department is mandatory for any business that has an annual turnover of INR 20 lakhs or more. GST will have to be charged on the goods or services provided by the business.

Opening a Current Account

A current account will have to be opened in the name of the business with a nationalized or scheduled bank to conduct various financial transactions such as receipt of payments from customers and issue of payments to suppliers.

Faq

A sole proprietorship is different from business structures like partnerships, limited liability companies, and corporations in that the owner is personally liable for all the debts and obligations of the business.
The advantages of a sole proprietorship include simplicity of setup and operation, complete control over the business, and the ability to make decisions quickly.
The disadvantages of a sole proprietorship include personal liability for business debts and obligations, limited access to financing, and a lack of legal protection for personal assets.
A sole proprietorship is not a separate legal entity, so the business's income is reported on the owner's personal tax return.
Yes, a sole proprietorship can be sold, but the owner must transfer ownership of all the business assets and liabilities to the new owner.
If the owner of a sole proprietorship dies, the business is usually terminated unless there is a plan in place for someone else to take over the business.

Our simplified process

01Registration with Tax Authorities

We help proprietorships to register with Income Tax and GST departments, to obtain PAN, TAN and GST numbers and file annual returns.

02Securing Licenses

We liaise with local government bodies, pollution control boards and other authorities to secure the necessary licenses for proprietorships.

Clients Speak

They are very professional and guided us properly right from the beginning. Highly recommended for your Visa requirements.

Saurabh Sirvastav

One of the best and very popular legal service provider..One of the best and very popular legal service provider..They listened to the problems and shared valuable input. Nicely coordinated and arranged the call. best place for legal work.

Ranjana Lupane