Starting a Proprietary Concern or Proprietary Firm is a simple process. There is no formal registration to be done. An Individual / sole trader (or one person firm) intending to do business or profession, can register the concern under Goods and Service Tax Act (GST), Profession Tax Act or Shops and Establishment act or Udyog Aadhar (MSME).
Can a business name be given for Proprietary Concern?
Yes. The business can be operated in the Individual’s name or a formal name can be given to perform the business. We have helped hundreds of individuals to set up proprietary concern in Bangalore. This is a very cost effective form of starting the business.
What is a Sole Proprietorship Firm?
- Sole means Single and Proprietorship means Owner. A Sole Proprietorship is the oldest and the most common form of the business. It is a one-man organisation where a single individual manages, owns, and controls of the business.
- Individual Proprietorship is form of the business organization at head of which stands an individual as one who is the responsible who directs its is operations & who alone runs the risk of failure.
- Shop & Establishment Registration under the laws the respective state.
- Registering as the MSME.
- GST Registration.
Documents required for Registration of Proprietorship Firm
- PAN Card
- Aadhaar Card
- Soft copy of Photograph
- List of Sale & Purchase Items
- Cancel Cheque
- Rent Agreement in case of rented property or NOC, if owned by relative
- Address Proof of Shop / Branch / Godown / Store: Anyone of the following (Should not be older than 2 months)
- Concession in Electricity
- Electricity Bill
- Water Tax
- Municipal Tax / House Tax Bill
- Aadhaar Number (Proprietor, Partner, Director)
- Name of Entrepreneur / Applicant as printed on Aadhar Card
- Social Category (GEN, OBC, SC, ST)
- Physically handicapped
- Name of Enterprise / Business
- Type of Organisation
- PAN (According to the Type of Firm)
- Location of Plant (Address)
- Office Address
- Mobile Number
- Email ID
- Date of Commencement of Business
- Bank Account Number
- IFSC Code
- Main Business Activity of Enterprise
- Number of Employees
- Investment in Plant and Machinery (Amount in Lacs)
Registrations required as per other Statute
Registration under Shops and Establishment Act
This is state specific requirement, in some States it is Mandatory and in some it is Optional, for example in the Delhi NCT it is Optional.
Local Municipality Registration
This kinds of registration is mandated by some of the municipalities and applies to the firms operating in the territorial jurisdiction of the municipality.
Goods and Service Tax (GSTIN) Registration
This is a tax levied on Supply of Goods and services Provided by Business entity.
Import Export Code
This is also known as IEC, and is pre-requisite before the Proprietorship Ventures in to any Import or Export.
Trade Mark Registration
Brand Name, Logo, Slogan, Label etc. are Intellectual Properties which acquires value over a period of time and it is advisable to protect them under as Trademark.
Provident Fund Registration
The moment number of employees exceeds 20 the proprietor is required to get itself registered with the regional office of the Provident Funds Organization. The contribution rate is 12% each from employee as well as employer.
Employee State Insurance Corporation (ESIC) Registration
Every organization including the proprietorship concerns employing more than 10 employees having salary more than 15000/- is required to get themselves registered with the concerned Regional office of the ESIC, the contribution to the ESIC is 6.5% wherein 4.75% is contributed by the employer and 1.75% is to be contributed by the employee.
Other Need Based Registration
The firm may be required to get themselves registered into various other departments like excise, customs, SSI etc.