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Features & Benefits of Proprietorship Firm Registration

Compliances for Proprietorship Firm

The following compliances should be adhered as applicable to Proprietorship Firm where the turnover is more than INR 2.5 Lakhs for IT return.

1. Income Tax filing – The proprietor of the Proprietorship Firm should file the income tax return on time using the e-form ITR-3 or ITR-4. The business income shall be declared duly in the income tax return forms per the income tax regulations.

2. GST Return – the proprietor once avails the GST Registration should file the GST Return every month and quarter as applicable per the business scheme under which the business activity has been registered.

3. TDS Return – proprietorship firm having employees or transaction of goods and services crossing a certain threshold, respective amount of tax must be deducted at source and TDS Return should be filed every quarter.

The Proprietor can undertake any business activity depending on the industries and sectors. Though per the law, there are certain listed activities which requires special approval from Government such as insurance, banking functions, lending, telecommunications, defence. It is advisable to seek the advice of a professional consultant or legal expert to understand the compliance requirements and ensure that the business operates in compliance with local laws and regulations.

  • Why Life Insurance?
    Buying life insurance protects for your dependents after you. It provides financial security, helps to pay off debts, live life smoothly even after you. Life insurance can give you lasting peace of mind in terms of the assurance that you have provided a legacy. It gives… Guaranteed protection, Income replacement, Guaranteed cash value growth
  • How to change Nomination in the Policy?
    Changing the nominee in LIC policy is a simple process. You need to notify the Life Insurance Corporation of India by filing form 3750. Documents required for nominee change...1) Form 3750 2) The relationship proof between the policyholder and the person being nominated. 3) Policy contract (for endorsement). 4) The LIC policy photocopy You can make this change multiple times during your policy term.
  • Why Life Insurance Plans?
    LIC is one of the largest insurance companies in India which offers wide range of life insurance plans. LIC offers term plans with affordable premiums and high coverage. LIC has good Claim Settlement ratio compare to other Life Insurance Companies. It has raised Trust over the years. With its customer-centric approach, LIC has become one of the top Life Insurers in India, and 5th largest in the world. For more details, you can call me on my given number in Contact Us page.
  • How to update Address?
    You can update your Contact Address on your policy based on Offline Aadhaar. Tap on the below given link and follow the process. Link : https://ebiz.licindia.in/D2CPM/?_ga=2.155407163.1855131267.1643959747-1137006311.1629281366#SelfAddressChange
  • How to pay Premium Online?
    You can pay premium online by clicking on the link given below. https://licindia.in/Home/Pay-Premium-Online It will redirect you on LIC website. If you don’t want to register then you can select ‘Pay Direct’ option. 1) Select Renewal option from the drop down list. 2) Put Policy No, DOB, Mobile Number, Email id & Premium (without any tax) 3) And Pay the Premium
  • Why Health Insurance?
    We never know because Emergency never knocks, it comes suddenly. Rising medical costs shouldn’t be the hurdle to get superior medical treatment. We should have Health Insurance because it protects our savings during medical emergencies. It provides cashless claim benefit, which allows you to take care of your health instead of worrying about hefty medical bills.
  • Why LIC Life Insurance Plans?
    LIC is one of the largest insurance companies in India which offers wide range of life insurance plans. LIC offers term plans with affordable premiums and high coverage. LIC has good Claim Settlement ratio compare to other Life Insurance Companies. It has raised Trust over the years. With its customer-centric approach, LIC has become one of the top Life Insurers in India, and 5th largest in the world. For more details, you can call me on my given number in Contact Us page.
  • What services does Right Advisorz offer?
    Right Advisorz specializes in two core services: comprehensive bookkeeping and seamless GST registration. Our bookkeeping services ensure your financial records are accurate, organized, and compliant with regulatory standards, while our GST registration services provide expert guidance to help you navigate and complete the GST compliance process efficiently.

Steps to Register a Proprietary Firm

  • Selection of a Business Name

    • Choose a unique and meaningful business name that reflects the nature of your business. The business name will be used for all official and legal purposes.

  • Obtain Proprietor's PAN and Aadhaar Card

    • The PAN and Aadhaar card of the proprietor are essential for the registration process.

  • Open a Current Account

    • A bank account in the name of the business is required to conduct transactions.

  • Obtain Required Licenses

    • Depending on your business type and location, certain licenses like the Shop and Establishment Act license and GST registration may be required.

  • Apply for MSME Registration

    • If you’re eligible, register your business under MSME (Micro, Small & Medium Enterprises) to enjoy various government benefits.

  • GST Registration

    • If your business is subject to GST, we can assist you in obtaining a GST registration number, allowing you to collect and pay taxes as per legal requirements.

  • Ongoing Compliance

    • Once your proprietary firm is registered, Right Advisorz offers continuous support in managing compliance requirements, including tax filings and other legal obligations.

Registration Form

Why Choose a Proprietary Firm?

  • Ease of Setup
    Proprietary firms are easy to establish with minimal legal formalities. You can start your business almost immediately, with fewer government regulations to comply with.

  • Complete Control
    As the sole owner of a proprietary firm, you have complete control over decision-making and business operations. This allows for swift, flexible management tailored to your goals.

  • Lower Compliance
    Proprietary firms require fewer compliance and reporting requirements compared to other business structures like companies or LLPs. This reduces operational costs and administrative overhead.

  • Tax Benefits
    Proprietary firms are taxed as individuals, which may result in lower tax liabilities, especially for small businesses and entrepreneurs.

  • No Minimum Capital Requirement
    There is no legal requirement to invest a minimum amount of capital when setting up a proprietary firm, making it a cost-effective option.

  • Direct Profits
    All the profits earned by the business directly belong to the proprietor, and there are no dividends or other profit-sharing obligations.

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Proprietary Firm Registration

Proprietorship is a form of business organization where a single individual owns and manages the business. The owner is personally liable for all the debts and obligations of the business, and they have complete control over the operations and decision-making process.

Proprietorships are relatively easy to set up and operate, with minimal legal requirements and paperwork. They are popular among small businesses and solo entrepreneurs who want to have full control over their business operations. However, they may face limitations when it comes to raising capital or expanding the business beyond the owner’s capacity.

Consult with an Expert

Overview of Proprietary Firm Registration

A Proprietary Firm is the simplest form of business structure in India, owned and operated by a single individual. It's the most popular choice for small businesses and entrepreneurs due to its simplicity, ease of setup, and minimal regulatory requirements. At Right Advisorz, we help streamline the registration process for sole proprietorships, ensuring that you can start your business without any hassle.

Proprietary Firm Registration

To register a proprietary firm, you need the following documents:

  1. PAN Card of Proprietor

    • The PAN card of the proprietor is mandatory for registration.

  2. Aadhaar Card of Proprietor

    • Aadhaar is needed to complete the KYC process for registration.

  3. Address Proof of Proprietor

    • Any of the following: Voter ID, Passport, Driving License, or Utility Bill (Electricity, Gas, Water)

  4. Business Address Proof

    • Rent Agreement (if the business premises is rented)

    • NOC from the property owner

    • Utility bill for the registered business address (not older than 2 months)

  5. Bank Account in the Name of the Proprietary Firm

    • A current bank account must be opened in the name of the business to manage transactions.

  6. Shop and Establishment Act License (if applicable)

    • Required in certain states if you’re setting up a shop or commercial establishment.

  7. GST Registration (if applicable)

    • If your business turnover exceeds the threshold limit, GST registration is mandatory.

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