Proprietorship
4.5
9000 Customers
Proprietorship Registration including GST and Udyam Registration.
Basic
- GST Registration
- Udyam Registration
Offers and discounts
Zero Account Maintenance Charges for 1 Year
Get GST eInvoice with Input Tax Credit
Pricing Summary
Market Price: ₹9,999
Bmcsindia: ₹5,999 All Inclusive
You Save: ₹4,000(51%)
Proprietorship Registration
A sole proprietorship is among the most straightforward and traditional business structures to initiate in India. It represents a business entity wholly owned, managed, and overseen by a single individual, who assumes the role of the proprietor. Given the direct alignment of the proprietorship with its proprietor, the initiation process is notably uncomplicated, accompanied by minimal compliance obligations.
Who is a sole proprietor?
In a sole proprietorship, the individual serves as the exclusive owner of the business. Consequently, establishing a new bank account for the business is imperative, and GST registration is typically accomplished using the proprietor's PAN and Aadhar details. The proprietor bears full responsibility for both the assets and liabilities of the business.
How to check proprietorship status?
In India, registration of a sole proprietorship is not mandatory. Consequently, there is no designated platform for verifying the status of a sole proprietorship. Nevertheless, if the proprietor has initiated the process for GST registration, it is possible to verify the existence of the proprietorship by checking the GST registration and filing status on the GST Portal.
Proprietorship legal entity status and recognition
Proprietorship in India does not receive distinct recognition as a separate legal entity. Therefore, for all legal and official matters, the business owner and the proprietorship are treated as one and the same.
Sole Proprietorship Registrations & Licenses
To operate a proprietorship business in India, the proprietor is required to secure both PAN and Aadhar. Furthermore, they must obtain GST registration, UDYAM registration, and establish a current bank account. In certain states, compliance with the Shops & Establishment Act registration may also be mandatory.
It's important to note that, beyond these fundamental prerequisites, additional licenses and permits may be necessitated, contingent upon the specific industry, state, and local regulations.
Advantages of Proprietorship
Easy registration: Sole proprietorship requires no formal incorporation or dissolution processes, as it is essentially an extension of the proprietor. However, to conduct business in compliance with Indian laws and regulations, the proprietor may need to acquire specific registrations and licenses.
Lower compliance: Most proprietorships are primarily registered with government departments like Income Tax and GST, resulting in reduced compliance obligations. Conversely, entities such as LLPs or Companies, registered with the Ministry of Corporate Affairs, are obligated to file various statutory returns and undergo annual audits by a Chartered Accountant.
Simplicity: Given the absence of partners, shareholders, or directors, a proprietor can easily manage this business with minimal documentation and consent requirements. Hence, this business structure is most suitable for very small enterprises.
Business decision: Within a proprietorship, the business owner retains the authority to make all business decisions independently. No external consent or approval is necessary, enabling the proprietor to make prompt determinations regarding their business affairs.
Complete control: Sole proprietorship, being the exclusive ownership of the proprietor, grants full control over assets, revenue, expenses, and all business operations to the proprietor.
Disadvantages of Sole Proprietorship
Funding: This business structure relies exclusively on the personal savings, borrowings, and credit history of the proprietor. Since no other individuals are involved, obtaining funding from banks can be challenging. Equity funding is not feasible, as this business entity does not allow for profit sharing or shareholding.
Personal liability: If a proprietor is unable to meet business loans or tax obligations, in a proprietorship, the personal assets of the business owner can be liable. Therefore, in this business structure, the proprietor remains personally responsible until all liabilities are settled.
Business continuity: In the event of the proprietor’s death or disability, a sole proprietorship will automatically cease to exist, leading to a lack of business continuity.
Growth: Proprietorships face several limitations concerning fundraising, liability, and business continuity. Consequently, they are typically suitable for very small businesses operating in the unorganized sector.
Unincorporated business: Sole proprietorships are categorized as unincorporated businesses, which means there is no centralized database to verify the active or inactive status of a sole proprietorship. Consequently, these entities are primarily classified as unorganized businesses.
Registering a Proprietorship Online through bmcsindia
Registering a proprietorship is a straightforward process that can be completed online through bmcsindia. To initiate the proprietorship registration, only the PAN and Aadhaar card of the business owner are necessary. We can assist you in obtaining the following registrations within a timeframe of less than 15 days:
- GST Registration
- Udyam Registration
- Zero-Balance Business Current Account with LEDGERS Accounting Software
Once you have completed the proprietorship registration on Bmcsindia, please proceed by following the steps below and uploading the specified documents via your LEDGERS account:
Step 1: Log in to LEDGERS using the email address for payment.
Step 2: Navigate to the Services Tab and select Proprietorship Engagement.
Step 3: Upload copies of your PAN and Aadhar Card.
Step 4: A bmcsindia Registration Expert will submit the registration application to the GST Department, MSME Department, and the bank for opening a Current Account.
Step 5: You will be granted access to LEDGERS Accounting Software for GST invoicing, GST filing, and other related services.
PAN Card for Proprietorship Firm
A proprietorship is not considered a distinct business entity. Therefore, there is no specific procedure to obtain a proprietorship PAN card.
Instead, the PAN card of the business owner is utilized for all proprietorship-related purposes.
Obtaining GST Registration for Proprietorship
GST registration for a proprietorship can be acquired through bmcsindia as part of their service.
The following documents are typically needed for GST registration:
- Permanent Account Number (PAN) of Proprietor
- Digital Signature Certificate of the Authorized Signatory
- Consent by Proprietor for obtaining GST Registration
- Photograph of Proprietor and Authorized Signatory
- Bank Account Details: A scanned copy of a cancelled cheque with the business entity's name, bank account number, MICR, IFSC, and branch information.
- Declaration / Authorization to Authorized Signatory
- For commercial purposes, the rent / lease agreement should be in the name of the proprietor.
- Additional documents such as Aadhaar Card, Driving Licence, Passport, or Voter ID in the name of the Owner with the complete address of the premises should also be provided if the address on the ownership document (Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill) is incomplete.
Obtaining UDYAM Registration for Proprietorship
Udyam Registration, which provides various benefits for small and medium-sized businesses, can be obtained online. After obtaining GST registration, the bmcsindia team will assist in obtaining UDYAM registration by submitting the Aadhaar card, PAN card, and GST certificate to the government.
Bank Account for Proprietorship
To open a bank current account for a proprietorship in the name of the business owner using their PAN, the business owner must provide proof of conducting business. Instead of a savings account, any two of the following documents can be submitted to establish a current account for the proprietorship: GST registration certificate. Shop & Establishment Act license. A license issued by the registering authority, such as a Certificate of Practice issued by the Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, or Food and Drug Control Authorities. Banks may also accept the IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening a bank account, among others.
Proprietorship vs Limited Liability Partnership (LLP) vs Company
| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
| Ownership | Sole Ownership | Min 2 Partners Max 50 Partners | Min 2 Shareholders Max 15 Directors Max 200 Shareholders 1 Director 1 Nominee Director | |
| Registration Time | 7-9 working days | |||
| Promoter Liability | Unlimited Liability | Limited Liability | ||
| Documentation | LLP Deed Incorporation Certificate | |||
| Governance | – | Under Partnership Act | LLP Act, 2008 | Under Companies Act,2013 |
| Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
| Compliance Requirements | Income tax filing if turnover is more than Rs.2.5 lakhs | |||
Frequently Asked Questions
BMCS India offers comprehensive business consultancy services, including strategy development, market research and analysis, financial advisory, operational optimization, and organizational transformation. We provide customized solutions to help businesses address challenges and achieve their growth objectives.
BMCS is the top most business management consultant all around the world. Our team of experienced consultants leverages industry knowledge, market insights, and proven methodologies to provide tailored solutions that align with your business goals. Whether you need assistance with market entry, strategic planning, process optimization, or talent management, we collaborate closely with you to understand your unique needs
BMCS India has expertise across various industries, including but not limited to technology, healthcare, manufacturing, retail, finance, and hospitality. Our consultants have worked with diverse clients, enabling us to understand industry-specific challenges and devise strategies that meet your sector's requirements.
To engage our services, you can reach out to us through our contact form, email, or phone. Our team will schedule an initial consultation to discuss your business objectives, challenges, and requirements. Following this consultation, we will provide a tailored proposal outlining the scope of work, deliverables, timeline, and pricing for your approval.
Absolutely! We work with businesses of all sizes, ranging from startups and small enterprises to multinational corporations. Our services are flexible and customizable to meet your specific needs, ensuring that you receive the level of support required to achieve your business objectives, irrespective of your company's size.
At BMCS India, we understand the importance of client confidentiality. We adhere to strict data protection protocols and maintain the highest level of confidentiality. Our consultants sign non-disclosure agreements, and we have robust internal systems in place to safeguard client information. Rest assured, your sensitive data is handled with the utmost care and confidentiality.
Yes, we can help your business expand internationally. Our team has experience and expertise in supporting companies with market entry strategies, feasibility studies, partner identification, and localization strategies in various global markets. We leverage our network of international partners to provide you with valuable insights and guidance throughout the expansion process.
To get started with BMCS India, simply reach out to us through our contact information on our website. We will be glad to schedule an initial consultation to understand your business requirements and discuss how our services can benefit you. From there, we will work together to develop a tailored plan to drive your business success.