Close
At ComplyHub, we simplify the process of registering your proprietorship, ensuring a seamless and hassle-free experience. Our expert team guides you through every step, from name reservation and document preparation to filing with the relevant authorities. We handle all legal and compliance requirements, so you can focus on building your business.
Advantages
1. Easy Setup and Low Cost: Establishing a sole proprietorship is straightforward, with minimal legal formalities and low startup costs.
2. Full Control: The owner has complete control over decision-making, allowing for quick and flexible responses to business needs.
3. Simplicity in Taxes: Income from the business is reported on the owner’s personal tax return, avoiding corporate tax rates and simplifying the tax process.
4. Direct Access to Profits: The owner keeps all the profits, as there are no shareholders to distribute them to.
5. Less Regulatory Burden: Sole proprietorships face fewer regulations and reporting requirements than corporations or partnerships.
6. Privacy: The business’s financial details are private, unlike corporations, which are required to disclose financial information.
7. Easy to Dissolve: If the business closes, dissolution is simple with minimal legal procedures or costs.
1. Unlimited Liability: The owner is personally liable for all business debts and obligations, which can put personal assets at risk.
2. Difficulty in Raising Capital: Sole proprietors may have limited access to funding and often rely on personal savings or loans, as investors prefer entities with limited liability.
3. Limited Life of the Business: The business’s existence is tied to the owner’s, so it may end if the owner becomes unable to run it or passes away.
4. Heavy Workload: Managing all aspects of the business alone can be overwhelming and may lead to burnout, especially as the business grows.
5. Limited Growth Potential: Scaling the business can be challenging due to limited resources, skills, and time.
6. Difficulty in Attracting Talent: Without the ability to offer stock options or significant benefits, it may be hard to attract highly skilled employees.
7. Less Credibility: Some clients, suppliers, and lenders may perceive a sole proprietorship as less stable or less credible compared to other business structures.
Select a unique and appropriate business name.
Ensure the proprietor has a PAN card and Aadhaar card for tax and identity purposes.
Open a current account in the business name for transactions.
Register for GST if the annual turnover exceeds ₹20 lakh (services) or ₹40 lakh (goods).
Optional but recommended for availing government benefits.
Obtain this license if you have a physical store or office.
📌 1. Eligibility for the Proprietor
• Indian Citizen: Only Indian citizens can register a sole proprietorship.
• Resident of India: The proprietor must be a resident of India.
• Minimum Age: The individual must be at least 18 years old.
• Single Ownership:
○ Only one person owns and controls the entire business.
○ No limit on the number of employees or scale of operations.
🏢 2. Business & Tax Eligibility
• Business Nature:
○ Any individual engaged in trading, manufacturing, or service activities.
○ Small or medium-sized businesses.
• Tax & Registration Requirements:
○ GST Registration – Mandatory if annual turnover exceeds ₹20 lakh (for services) or ₹40 lakh (for goods).
○ MSME/Udyam Registration – Optional but recommended for benefits.
○ Professional Tax Registration – Required in certain states.
○ Shop and Establishment License – Required if you have a physical store or office.
⚠️ 3. Restrictions
• A sole proprietorship cannot raise equity funding.
• Unlimited Liability: The proprietor is personally liable for all business debts and obligations.
• No separate legal entity: The business and the owner are legally the same.
Estimated Completion Time
15-20 Days
Estimated Completion Time
8-10 Days
Estimated Completion Time
5-7 Days
The expected completion time given above for all packages does`not include the time taken by the government for approvals.
Company name reservation is free for the first time. Applying again would be chargable.
Get 10% Flat OFF on Trademark registration and GST Registration packages if you buy a premium package for Proprietorship registration
