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As an individual or a firm, Sole Proprietorship registration requires the below-mentioned documents.
Sole Proprietorships often operate under your legal name, and there may be no formal registration requirement to start and run a business as a sole proprietor. However, these are a few general steps to successfully start this type of business structure.
Since Sole Proprietorship is not a separate legal entity, your income as a sole proprietor will be taxed as personal income.
The following tax rate applies to a Sole Proprietorship for FY 2023-24:
You can also opt for an Alternate Tax Regime, which further provides flexibility and different tax rates for respective income slabs. In addition to the Income Tax amount, you must also pay Surcharge and Health and Education Cess, which can vary for each taxable income slab.
Common Causes of Registration Delays:
The registration charges for a Sole Proprietorship can span from Rs. 500 to Rs. 2,000. This cost includes essential registrations and licenses like GST, Shop and Establishment, or MSME. *The cost can vary depending on jurisdiction, government, and professional fees.
It is not mandatory to register your business as a Sole Proprietorship in India. Operating as a Sole Proprietorship is one of the simplest forms of business structure, and it does not require formal registration with government authorities.
GST stands for Goods and Services Tax, a value-added tax levied on the consumption of goods and services.You can register your firm through the following steps:
MSME registration stands for Micro, Small, and Medium Enterprises registration, launched to provide various benefits and support to businesses falling within the defined categories. You can register your business with the MSME Act to avail of such benefits. It offers several advantages to registered businesses, including-
Here’s a simple guide to choosing your business name.
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Businesses pertaining to activities, such as banking, insurance, finance, lending, defence, and telecommunication, will face certain operational restrictions and require additional regulatory approvals/ licenses.
The significant difference between Sole Proprietorship and a One Person Company is the separate legal existence of the business. An OPC offers limited liability, perpetual succession, and fundraising opportunities, while a Sole Proprietorship doesn’t provide these features.
Both structures have their advantages and disadvantages, and the choice should align with the specific needs and circumstances of your business.
Since Proprietorship doesn’t involve compulsory legal registration, the dissolution of such a firm is relatively easy.
Sole Proprietorship doesn’t include formal registration, making it easier to transition and start a new registration with entities like Private Limited Company, One Person Company, or LLP. The registration process can vary from one type to another. You can find detailed information about each structure's registration process on their respective pages.
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