A sole proprietorship is a business owned and operated by one individual. It's simple to set up and manage, but the owner has unlimited liability for business debts. It is also referred to as a sole trader or a proprietorship.
Sole Proprietorship
A sole proprietorship is a type of business structure where a single individual owns and operates the business with no any other partners. It's the simplest form of business entity and is common among small businesses and solo entrepreneurs because it's easy to set up and has minimal regulatory requirements, the business that can be owned and controlled by an individual.
- Age: The individual must be at least 18 years old.
- Legal Capacity: The individual must have the legal capacity to enter into contracts and be of sound mind.
- Business Activity: The business activity must comply with Indian laws and regulations. Certain businesses may require specific licenses or permissions.
- Business Name: The business can operate under the individual's own name or a registered trade name. If using a trade name, it should not infringe on existing trademarks.
- Tax Registration:
1. PAN (Permanent Account Number): The sole proprietor must have a PAN card for tax purposes.
2. GST Registration: Required if the business turnover exceeds the GST threshold limit or if the business is engaged in interstate supplies.
- Local Permits and Licenses: Depending on the type of business and its location, various local licenses or permits may be required, such as a Shops and Establishment Act license.
- Bank Account: Open a separate bank account in the business name to manage finances.
- Compliance with Local Laws: Ensure compliance with local zoning regulations and other municipal requirements.
- Age: The individual must be at least 18 years old.
- Simple and inexpensive to establish.
- Complete control and decision-making power by the owner.
- Minimal regulatory requirements.
- Direct claim on all profits by the owner.
- Consultation: Discussing business needs and advising on the suitability of a Sole Proprietorship.
- Documentation: Collecting and preparing necessary documents for registration.
- Local Authority Registration: Registering the business under the Shop and Establishment Act and obtaining other local licenses.
- Tax Registrations: Applying for PAN, GST registration, and TAN if required.
- MSME Registration: Registering under MSME to avail benefits for small businesses.
- Bank Account Opening: Assisting in opening a business bank account.
- Post-Registration Compliance: Providing ongoing support for accounting, tax filing, and compliance.
- Consultation: Discussing business needs and advising on the suitability of a Sole Proprietorship.
- Aadhar Card
- PAN Card
- Bank Account
- Address Proof of the Proprietor
- Registered Office Proof:
- Rental Agreement/Lease Deed if the business premises are rented
- Property documents if the business premises are owned
- Utility Bill (electricity, water, gas, or telephone) not older than 2 months
- Aadhar Card
1. Initial Consultation and Guidance
- Business Structure Advice: Assessing the suitability of a Sole Proprietorship structure based on the nature and size of the business.
- Legal and Compliance Requirements: Providing information on legal obligations, compliance requirements, and potential tax benefits.
2. Business Name Registration
- Name Selection: Assisting in choosing a unique and appropriate business name.
- Trade Name Registration: Helping with the registration of the trade name if required by the state laws.
3. Documentation Preparation
- Identity Proof: Collecting identity proof such as PAN card and Aadhaar card of the proprietor.
- Address Proof: Gathering address proof like utility bills, rent agreement, or property documents of the proprietor’s business address.
- Photographs: Passport-sized photographs of the proprietor.
4. Registration with Local Authorities
- Shop and Establishment Act Registration: Assisting in obtaining the Shop and Establishment Act license from the local municipal corporation.
- Professional Tax Registration: Helping with the registration for professional tax if applicable in the state.
5. Tax Registrations
- PAN Application: Ensuring the proprietor has a PAN card.
- GST Registration: Assisting in obtaining GST registration if the business’s turnover exceeds the prescribed limit or if the business is involved in inter-state supply of goods/services.
- TAN Application: Helping in obtaining TAN for businesses required to deduct tax at source (TDS).
6. Other Necessary Registrations- MSME Registration: Assisting with the registration under the Micro, Small, and Medium Enterprises (MSME) Development Act to avail benefits provided by the government.
- Trade License: Helping in obtaining trade licenses from local municipal authorities if required.
7. Bank Account Opening
- Business Bank Account: Guiding on opening a bank account in the name of the proprietorship to handle business transactions.
- Business Structure Advice: Assessing the suitability of a Sole Proprietorship structure based on the nature and size of the business.
Yes, operating a sole proprietorship in India typically requires a business license, but the specific requirements can vary depending on the type of business and location.
A sole proprietorship is required to register for GST (Goods and Services Tax) if its annual turnover exceeds the threshold limit set by the government, which is currently ₹20 lakhs (₹10 lakhs for special category states).
A sole proprietorship is taxed as per the individual tax rates applicable to the proprietor. The income earned from the business is treated as the proprietor's personal income and is taxed according to the slab rates applicable to individuals under the Income Tax Act.
Registering a sole proprietorship in India can take anywhere from a few days to a few weeks, depending on the specific requirements and the efficiency of local authorities.
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SS Auditors understands the importance of client satisfaction and strives to provide high-quality auditing services. However, it is important to note the following refund policy:
Cancellation & Refund Policy
S S AUDITORS AND TAX CONSULTANTS believes in helping its customers as far as possible, and has therefore a liberal cancellation policy. Under this policy:
• Cancellations will be considered only if the request is made immediately after placing the order. However, the cancellation request may not be entertained if the orders have been communicated to the vendors/merchants and they have initiated the process of shipping them.
• S S AUDITORS AND TAX CONSULTANTS does not accept cancellation requests for perishable items like flowers, eatables etc. However, refund/replacement can be made if the customer establishes that the quality of product delivered is not good.
• In case of receipt of damaged or defective items please report the same to our Customer Service team. The request will, however, be entertained once the merchant has checked and determined the same at his own end. This should be reported within only same day days of receipt of the products. In case you feel that the product received is not as shown on the site or as per your expectations, you must bring it to the notice of our customer service within only same day days of receiving the product. The Customer Service Team after looking into your complaint will take an appropriate decision.
• In case of complaints regarding products that come with a warranty from manufacturers, please refer the issue to them. In case of any Refunds approved by the S S AUDITORS AND TAX CONSULTANTS, it’ll take 3-5 Days for the refund to be processed to the end customerLegal Disclaimer
The explanations and information provided on this page are general and high-level guidelines on how to write your own Shipping Policy. This article should not be relied upon as legal advice or specific recommendations, as we cannot foresee the exact shipping policies you wish to establish between your business and your customers. We recommend seeking legal advice to assist you in understanding and creating your own Shipping Policy.
Shipping Policy - The Basics
A Shipping Policy is a legally binding document that establishes the legal relations between you and your customers. It provides a framework for outlining your obligations and addressing various potential issues that may arise, and what happens in each case.
A Shipping Policy is good practice and benefits both sides—you and your customers. Customers benefit from being informed about what to expect from your service, while you benefit because clear Shipping Policies can attract more customers by eliminating uncertainties about shipping timeframes or processes.