Proprietorship Firm Registration
Proprietorship Firm Registration
What is Proprietorship Registration?
Proprietorship Registration is a process of registering your single-owner entity under the State’s applicable firm registration rules. Proprietorship registration is a voluntary registration applied by the owner of the business to obtain tax registration, to open a Current account of business, to enter into contracts with multiple suppliers/vendors or customers, or for several reasons.
Proprietorship Registration can be done by filing an application of Registration to the Registrar of firms or by obtaining any secondary registrations like MSME Registration, Shop and Establishment Registration, Business Tax Registration PAN/TAN), or GST Registration. For a sole proprietor, there is no such compulsion to get his business registered at the time of its start, it can be applied even after the business becomes stable.
Who should apply for Proprietorship Firm Registration?
It is up to the owner to apply for Registration of his proprietorship business. But there are circumstances where the entity managed by a single owner needs to interact with multiple other businesses and oblige to legal compliance. Also, the owner needs to take off the tax compliance as provided under the Income Tax Act, 1961 and the GST Act where after a certain limit, the entity requires registration to prove its legal existence.
The registration of the business will be required if the owner wants to:
- Fulfill a legal obligation on the firm of the Government.
- Enter into legal contracts.
- Apply for Government tenders or projects.
- Obtain business PAN /TAN.
- Apply for a business bank account.
- Apply for Credit limit or loan facility from the banks.
- Obtain Trademark / Copyright for the business.
- Scale business with exports or interstate selling
- Start E-Commerce Selling Business etc.
What documents are required to apply for Proprietorship Business Registration?
Here is a list of documents required for the application of Proprietorship Firm Registration in India:
- Owner Aadhar Card
- Owner PAN Card
- Owner Current Bank Account Details
- Business Address / Office proof.
- Passport Size Photograph of Owner
Let’s understand Proprietorship Business Registration in different states:
| Registration in Delhi/NCR | Registration can be done by obtaining registration under Shop and Establishment Act Registration in Delhi. | Documents Required are Owner KYC Documents, Business Address proof, Owner declaration, etc. | Compliances are obtaining GST registration, filing Income tax returns, opening a business bank account, etc. |
| Registration in Maharashtra / Mumbai | Registration can be done through Shop and Establishment Act under Labour Department Maharashtra. | Documents Required are Annexure A/B/C for business ownership and existence information and owner identity proofs. | Compliances are obtaining Labour registration, filing of declarations, obtaining GST Registration, and filing of annual license returns, etc |
| Registration in Haryana/ Gurugram/ Panchkula | Registration can be done through HRY Labour Department for Shops and Establishment | Documents required are owner identity documents, proof of business address and inventory per forum, etc. | Compliances are filing Form B, applying for GST registration, renewal of licenses, and filing annual returns. |
| Registration in Uttar Pradesh/ Noida/ Kanpur | Registration can be done through Shop and Establishment (Govt of UP). | Documents Required are Proprietor identity documents, Affidavit / Declaration, and other business proofs | Compliances are opening of business bank account, business PAN/TAN Application, labor license, FSSAI license, etc |
| Registration in Punjab/ Chandigarh/ Amritsar/ Mohali | Registration can be done through Shop and Establishment Registration of Firms (Govt of Punjab). | Documents required are Identity proof, business address proof with passport-size photos, etc. | Compliances are obtaining Labour registration, filing of declarations, obtaining GST Registration, and filing of annual license returns, etc |
Register anywhere in India
Proprietorship Firm Registration in India can be applied offline in some states, while it is a completely online process in some states.
How much time does it take for Proprietorship Business Registration?
The duration for Proprietorship Firm Registration depends on state-based registration rules and compliances. Also, it depends on the objections and issues raised by the appellate authority of firms of the respective state. On average, it takes about 2 to 3 days for a Proprietorship firm to obtain its Registration certificate in India.
Compliance after Proprietorship Business Registration
Once a Proprietorship Firm is registered the following compliances have to be undergone by the owner of the business:
- Application for TAN / PAN for the entity.
- Accounting / Bookkeeping
- Filing Annual Income Tax Returns with/without Audit provisions.
- GST Registration and Return Filing
- TDS Compliances and Returns
- ESI / EPF Registration
- State License Registrations and Compliance
- Trademark / Copyright Application
- FSSAI License / Trade License / Export Import Code
The Certificate of Registration under all the above legislation is granted to the owner which is conclusive proof of Registration of the business. The proprietorship registration expert there at TaxReturnWala helps you in the entire process of filing an application for registration with the registrar or the appropriate authority and consults you on legal documentation, tax registration, and all other compliance related to your business.
For assistance required regarding Proprietorship Registration or any related
compliances, you can email us at info@taxreturnwala.com