Let’s Help You Set up Your Sole Proprietorship!

Minimal Documentation - Zero Hassle - Full Support

Perfect for freelancers and new business owners. Very easy to set up with minimal documentary requirements. Provides great tax benefits and superior ease of doing business.

What is a Sole Proprietorship?

Sole proprietorships are quite common terms these days. When an individual executes various business projects and is the sole business entity that gets represented via the brand and the services, the company in question is a sole proprietorship. The company and the person are not separate from each other; in other words, the identity of the individual represents the business. But sole proprietorship provides several advantages like flexibility in operations, lower tax rate, etc., and hence it could be one of the most promising first steps for businesses worldwide.

There are times when a business does not have an authoritative collective that governs its actions. Instead, the same is done by a single person. A sole proprietorship is controlled and administered by a single owner, and often reflects the unregistered businesses that are owned and managed by a single person as well. In India, a sole proprietorship is one of the most popular, growing, and trending businesses. Most micro and small businesses operating in the unorganized sectors are sole proprietorships.

Proprietorships are easily established. They contain the least amounts of regulatory constraints and compliance requirements for operations. When entrepreneurs are venturing into businesses for the first time or when small businesses are operating with few clients, then sole proprietorships are the ideal way to kickstart their initial stages. Sole proprietorships can be incorporated in just fifteen days. Therefore, these are some of the most preferred forms of business for small traders and businessmen in the unsystematic sector.

Read More

Features of Sole Proprietorship Firm

Sole proprietorship firms have some great advantages and features, that make them well suited for initial business setup. Here are the features that make them so enticing:

1. Very easy to form

Sole proprietorships are very easy to form, require minimal documentation.

2. Minimal compliance

With a sole proprietorship, the tax compliance and other compliance are at a bare minimum. In most of the cases, owner's PAN and firm's PAN are the same and one needs to file just ITR-3.

3. Easy to wind up

There are no tall dissolution proceedings needed in case of dissolution of a sole proprietorship.

4. Lower tax rates

The income of the sole proprietorship and the owner are considered the same. Hence same tax laws and slabs apply, providing a huge tax advantage.

Sole Proprietorship Formation Packages

All you need to do for registering a Sole proprietorship is to read and understand the sections below. Provide us with the documents, avail a package, and relax!

Basic Package

Save upto 5% cost on this package

3,500

(inclusive of all taxes)

  • Name Search report
  • Registration under shop & establishment Act or GST, any one of them
  • Issue of Registration Certificate
  • Bank-Current account opening
Get Started

Growth Package

Save upto 10% cost on this package

5,000

(inclusive of all taxes)

  • Name Search report
  • Registration under shop &establishment Act or GST, any one of them
  • Issue of Registration Certificate
  • Bank-Current account opening
  • MSME UDYAM  Registration
#request-a-call-back

Premium Package

Save upto 15% cost on this package

15,000

(inclusive of all taxes)

  • Name Search report
  • Registration under shop & establishment Act or GST, any one of them.
  • Issue of Registration Certificate
  • Bank-Current account opening
  • MSME UDYAM  Registration
  • Trade mark Registration.
Get Started

Documents Required

Here is a simple list of the criterion and documents that one might require to form a sole proprietorship:

Minimum Criteria

  • Any person having valid PAN & Aadhaar and being 18 years of age can start a sole proprietorship Firm
  • No Minimum Capital required

Documents

  • Self Attested Copy of Pan Card
  • Self Attested copy of Aadhaar Card/Passport/Driving License/Voter Identity Card
  • Passport size photographs
  • Self Attested Copy of Bank Statement/Telephone Bill/Mobile Bill
  • Mobile and email ID

Document For Registered Office

  • Electricity/Water bill pertaining to the proposed registered office
  • Copy of rent agreement (if the office is running from a rented property) or,
  • Sale Deed (in case property is owned)

Frequently Asked Questions (FAQs)

My Legal Clinic believes in answering your questions. We know that as a new business owner you would have certain levels of anxiety and doubts about how the legal business environment works, well don’t worry, read our FAQs, they have been put here to answer all the usual questions that you might have about forming a sole proprietorship.

Who should go for a sole proprietorship?

People who are just beginning their business journey or those who provide specialized services where their own intervention determines the fate of the business can go for it. Professionals like freelancers, bookkeepers, accountants, and even small shop owners can opt to register their business as a sole proprietorship.

What are the benefits of forming a sole proprietorship firm?

We have already addressed this question in the main section of our web page, however, to make things even clearer, there are many benefits associated with a sole proprietorship firm. First and foremost is the ease of registration. You won’t be required to furnish a tall list of documents too. It’s very easy to windup or suspend your business operations too.

Do I have to furnish any capital?

That’s the beauty of sole proprietorship, there are no minimum capital requirements whatsoever.

Can I open a current account in my firm’s name?

Yes, once you are registered as a sole proprietorship firm, you can open a current account with any bank of your choice. Connect with us for that! We can help you by pointing in the right direction here.

Will I be directly liable for the business?

Yes, in the case of sole proprietorship the owner and business are not separate entities but one. Any issues with the firm’s operation would have direct legal consequences for you.

Ready to Get Started?

Need some help with legal and other business compliance modalities for your business? Just write to us, someone from our team will connect with you soon.