Establish a Proprietorship Firm in India

A Sole Proprietorship is the simplest business structure, owned and managed by a single individual. The sole owner provides all capital and receives all profits and losses. While formal registration is not mandatory, certain registrations like GST and MSME are generally advisable.

Key Features of Sole Proprietorship Registration

 

Single Owner: Only one person can own the business.

 

Full Control Over Management: The proprietor has complete control.

 

Entitlement to 100% Profits: All profits belong to the owner.

 

Unrestricted Liability: Personal assets are at risk for business debts.

 

Limited Existence: The business ends with the owner.

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Eligibility to Start a Sole Proprietorship
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Sole Proprietorships are less regulated and simpler to establish. However, they are only available for Indian citizens and natural persons who are at least 18 years old. Here are the eligibility criteria:

 

Single Person Ownership:Only one owner allowed.

 

Natural Person: Only individuals can be proprietors.

 

Indian Citizens: Exclusively available for Indian citizens.

 

Registered Address: A valid business address is necessary.

 

Unique Name: The business name must be distinct and legally valid.

 

Adequate Capital: No minimum or maximum capital requirement.

 

NRI/PIO: NRIs and PIOs can start a proprietorship on a non-repatriation basis.

Documents Required to Start Sole Proprietorship Registration

While no formal registration is necessary, certain basic registrations may be required. Here’s a list of essential documents for Sole Proprietorship registration:

 

PAN Card

 

Aadhaar Card

 

Colour Photo

 

Name of Business

 

Address Proof

 

Office Address

 

NOC from the Owner of the Office Space