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Proprietorship Firm Registration

Register a sole proprietorship firm in Chennai in 1 working day. Sole proprietorship registration is the simple and easiest form of business for small startups.

Sole proprietorship registration package

  1. MSME registration for sole proprietorship.

Documents required for sole proprietorship MSME registration

Documents required for proprietorship msme registration in Chennai

1.  Sole proprietorship registration certificate Checklist.
2. Pan card of the proprietor of the firm.
3. The Aadhaar card of the proprietor
4. Bank account details of proprietor.

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    How to register a sole Proprietorship Company?

    A proprietorship business registration is an individual business setup, it is not mandatory to register a sole proprietorship in Tamil Nadu. All forms of small businesses such as street vendors, home-based businesses, traditional retail vendors, and food outlets are generally run by a single person, the process of firm registration for a sole proprietorship company is completed by msme registration.

    Pricing:
    ₹1000


    Steps to Register

    Business registration Consulting

    Our sole proprietor company registration consultant will discuss to get the details about the nature of the business and other factors relevant to the registration of a sole proprietorship business.
    01

    Documentation for sole proprietorship registration

    The checklist to register sole proprietorship firm is sent to the client and other instructions are given, documents required for sole proprietorship registration is received from client.
    02

    Document validation

    Once all the documents are checked by our team, and documents are validated for completeness, the client will instructed to clear the fees for sole proprietorship registration.
    03

    Sole proprietorship registration process

    Upon receipt of fees, our internal team will process and submit the proprietorship firm registration application. MSME registration certificate will be mailed to the client once MSME certificate is generated.
    04

    Compliance advisory

    The client will be provided with information about when to apply for GST registration for sole proprietorship, and basic details about income tax due dates for proprietorship income tax return filing.
    05

    What are the additional registration required for a sole proprietorship

    Each kind of business requires different types of registration, let us give some important kinds of business and relevant registrations required along with proprietor firm registration

    1. GST Registration—Sole proprietorship GST registration is mandatory when turnover crosses Rs.40,00,000 in a financial year for a supplier of goods, the limit is Rs.20,00,000 if the supplier is also a service provider.

    2. FSSAI registration or license – Every food business operator dealing with food products shall apply for food safety
    registration for proprietorship firm and FSSAI licenses should be applied in the relevant category.

    3. IE code or import export code application – IE code registration is required for every business engaged in the import or export of goods or services, import of capital goods such as machinery, and receipt of payment from a foreign country.

    4. Tan number application – TDS should be deducted by a person on a certain transaction when turnover or transaction amount crosses a certain limit, subject to other conditions. We request you to apply the TAN number for the proprietorship firm to take care of TDS compliance and to avoid huge penalties and interest.

    5. Fire safety – A fire safety license is mandatorily applicable for restaurants, supermarkets, etc, and other businesses which is subjected to the risk of fire accidents.


    From Auditor DESK

    We recommend to register sole proprietorship MSME Registration as a primary document that every proprietary firm should have for business existence.

    Frequently Asked Questions

    We make it easy for you to find the answer to frequently asked questions here...

    Proprietorship firm registration does not have a separate legal identity, the PAN number of the proprietor will be used to file income tax returns for proprietorship business, GST registration for sole proprietorship business, IE code application, etc. The sole proprietor is not distinct from the proprietorship firm, in fact, all communication is directly addressed to the proprietor instead of the firm

    Proprietor needs to apply for a trademark application to protect the business brand name, in most case proprietorship business is opted for a business that does not require brand value, so in case if you plan to establish your brand you can opt for a partnership company or private limited company registration because it gives the flexibility to expand by adding another person into the business.

    You can sell your business to another person, however only the proprietorship business can be transferred, and business registration and bank accounts cannot be transferred.

    There is no such concept of sole proprietorship firm renewal, once registered your udyam number will be active lifelong as per current rules, there is no such requirement to file a periodical return, however, we need to update any changes in the business address nature of the business, etc.

    The Old Udyog Aadhar number is still valid, for updating any data we need to migrate to udyam registration, so if you’ve already applied for Udyog Aadhaar registration we need a UAM number for migrating to Udyam registration.

    Tax rates relevant to the individual are applicable to the income of the proprietorship firm, income from a proprietorship business is assessed as income from business or profession in the hands of the sole proprietor

    If his or her total income is less than the basic exemption limit then there is no requirement to file an income tax return subject to other conditions, total income to determine  to file an income tax return is calculated without allowing certain deductions and exemptions, in simple if you have income deductions and exemptions it is better to approach income tax consultant for proprietorship business, who will provide income tax consulting for your business income.

    Yes, there are no restrictions on it, however, it is suggested to avoid replicating the name of famous brands, registered trademarks, etc. Choose names that convey your nature of business in a better way.

    There is no such condition regarding the minimum capital amount required, we suggest having a business plan for the amount of investment that is required for assets, working capital, registration fees, etc.

    Self-employed in the strict sense means doing business individually without any team under the individual e.g.: a self-employed computer technician, a self-employed person practically does not have a separate brand working for him, while sole proprietorship tends to grow on a large scale, establish a brand name, etc. Proprietorship is the type of business structure whereas self-employment relates to a business activity in which the major activity is carried out by the individual. Self-employment is widely seen in the service sector in which the individual provides the service directly to their clients without much workforce, the structure of the business entity can be a private limited, partnership firm , or sole proprietorship for self-employed.

    Giving your business brand name, proper current account operations and separation of business transaction and personal transactions will surely provide an added advantage of the bank overdraft facility, additional loan amount eligibility as financial statements will be available for running a business, etc. To have good financial credibility it is always suggested to separate business transactions from personal transactions even though there is no such legal requirement.

    Expert guidance for every sole proprietorship business owner

    1. Always calculate profitability assuming after GST registration application and without GST registration if it is not mandatory, GST registration is practically made into a primary document for current account opening by most of the banks, we should not tend to register GST immediately without any calculations. If you need to avoid registering GST for bank account opening, then it is suggested to upgrade your business structure to partnership registration.
    2. File income tax return for proprietorship firm each year within the due date
    3. Keep personal transactions and business transactions separate so that it is helpful for the assessment of financial growth, working capital management, and proper financial planning.
    4. A proprietorship business is a flexible form of business structure that is not monitored by separate departments or ministries. Due to lower compliances, we ignore giving importance to business documentation, accounting, etc. Every business requires streamlined business processes and procedures which is relevant to the magnitude of the business and industry. In fact there are thousands of sole proprietary firms with turnover of more than 100 crores, only because their proprietors considered their business requirement rather than a legal requirement.
    5. Capital-intensive businesses should consider other forms of business structure, proprietorship will face a deadlock situation in case of rapid expansion and financial needs.
    6. If you are comfortable spending a few thousand more, it is recommended to opt for partnership firm registration as it gives more advantages of separate legal identity, improved credibility, and flexibility to add and remove partners.
    7. The only practical and considerable disadvantage between partnership and proprietorship is TDS provisions are applicable irrespective of the turnover limit for the partnership business.
    8. A self-employed individual can opt for a proprietorship form of business which will give them an advantage in future business development through the advantage of improved credibility, A minor difference can make your future successful, and business transactions made through current accounts provide wonderful results.
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