How much time is needed for sole proprietorship registration in India?
On average it takes 7-10 days for completion of sole proprietorship registration. However, this is also dependent on the type of registration sought and processing time by Government Authorities.
Do I need to be physically present during this process?
No, sole proprietorship registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.
Who can be a proprietor of a sole proprietorship firm?
Any individual person who is a citizen of India and has the required documents can become a proprietor of a sole proprietorship firm.
Is it mandatory to register a sole proprietorship firm in India?
No, registration of a sole proprietorship firm is not mandatory in India. However, in order to open a Bank Account or to obtain any kind of finance or deal with a business supplier, a sole proprietorship firm should obtain some kind of registration.
Does a sole proprietorship firm have a perpetual succession or continuous existence?
No, a sole proprietorship firm shall not have a perpetual succession or continuous existence. A sole proprietorship firm shall be dissolved after the death of the sole proprietor.
Is a sole proprietorship firm a separate legal entity?
No, a sole proprietorship firm is not a separate legal entity from its owner. The PAN card of the proprietor and sole proprietorship firm is the same and all the Income and losses of the firm are taxed on the individual’s income tax return.
What is the minimum capital needed to form a sole proprietorship firm?
There is no prescribed minimum capital for starting a sole proprietorship firm.
Can a salaried person or a person in the employment form a sole proprietorship firm?
Yes, a salaried person or person in employment can form a sole proprietorship firm. However, one needs to check the employment agreement or terms of employment if it has certain restrictions.
Can a person underemployment in PSU or a government servant or a professional carrying on his practice from a sole proprietorship firm?
Yes, person underemployment or a government servant or a professional carrying on his practice can form a sole proprietorship firm. However, one needs to check if there’s any restriction from governing body, authority or ministry.
Can a minor person start a Sole Proprietorship Firm?
No, a minor whose age is below 18 cannot start a Sole Proprietorship Firm on his own because the liability of a Sole Proprietor is unlimited.
Is it required to have a Sole Proprietorship Firm’s book audited?
It is not mandatory for a Sole Proprietorship Firm to get its book audited. However, it shall get its book audited as per Income Tax Law / GST Law if its turnover crosses the specified threshold.
Can I register my Sole Proprietorship Firm at my home or residential address?
Yes, you can register the company at your residential address.
Can NRIs start a Sole Proprietorship Firm in India?
Yes, NRI’s are allowed to start Sole Proprietorship Firms. However, such a sole proprietor has to follow the FDI Guidelines and restrictions for the same.
How should I name the Sole Proprietorship Firm?
The name of Sole Proprietorship Firm can be any name but shall be unique and should not resemble any established or well-known trademark.
How can I protect the name of my Sole Proprietorship Firm in India?
You can protect the name of your Sole Proprietorship Firm or Brand name by applying for Trademark registration. For more details, you can visit – https://registrationarena.com/trademark-registration/
How will I get my registration documents like Shops and Establishment Act Registration, MSME Registration, and GST Registration?
You will receive these documents in soft copy via email.
Can I do multiple businesses in one Sole Proprietorship Firm?
Yes, you can do multiple businesses in one Sole Proprietorship Firm
What documents are required to open a bank current account of the Sole Proprietorship Firm?
The documents required for opening a bank current account shall vary from bank to bank. Basically, documents like PAN Card, Aadhaar Card, Shops and Establishment Act Registration, MSME Registration, GST Registration etc. shall be sufficient for the same purpose.
Does Sole Proprietorship Firm require TAN registration?
TAN is the Tax Deduction and Collection number which is required by a proprietor for deducting tax at source (TDS) as per Income Tax laws.
Can I start Food-related business / Cafe / Restaurant as a Sole Proprietorship Firm?
Yes, you can form a Sole Proprietorship Firm and obtain FSSAI registration/license to start a Food-related business / Cafe / Restaurant.
Can I start Import Export Business as a Sole Proprietorship Firm?
Yes, you can form a Sole Proprietorship Firm and obtain Import Export Code to Start Import Export Business in India
Can I get Startup Registration for my Sole Proprietorship Firm?
No, you cannot get Startup Registration for a Sole Proprietorship Firm. Only a Private Limited Company, LLP and a Partnership Firm are eligible for it. You can visit https://registrationarena.com/startup-india-scheme/ for more details
What are the disadvantages of a sole proprietorship firm?
There are a few disadvantages to sole proprietorship firms such as :
- Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business.
- Owners cannot raise capital by selling any share/interest in the business.
- It is not much preferred by Banks and Financers
- Sole proprietorships don’t survive after the death or incapacity of their owners
Can I convert my sole proprietorship firm into a Private Limited Company?
Yes, you can convert my sole proprietorship firm into Private Limited.
Registration Arena is the expert hub that can assist you with your business requirements. For more details visit us at https://registrationarena.com/ or call us at 8600544411 / 8600544422.