Prop. Documents:

Pan
Aaadhar
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Other Documents:

Electricity Bill
Rental Agreement

Includes: Registration
Duration: 7 Working Days

Company Compliances

A Sole proprietorship is one of the oldest and handiest Business Structure to begin in India. A proprietorship is a type of organisation this is owned, controlled, and managed through manner of one individual – who’s the proprietor. As the proprietorship and proprietor are one and the equal, it’s miles very smooth to start and there are very minimal compliance necessities. As the owner and the organization are one and the equal, a proprietorship can not have other companions or shareholders. Further, there’s no restrained criminal duty protection for the owner from the economic business enterprise sports activities activities performed within the handiest proprietorship. Hence, this kind of commercial employer entity is first-rate great for each small organizations without a greater than 5 employees. Kanoons let you in registering a Sole Proprietorship, a easy and green business employer form that is right for solo entrepreneurs. With our professional guidance and streamlined approach, you could start your proprietorship quick and trouble-unfastened. Start your Sole Proprietorship with us and release the capacity of your industrial enterprise mind.

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: ₹4999
₹2499
: ₹2948.82
: ₹449.82
: ₹2501(50%)
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Proprietorship Registration in India

Registering a proprietorship in India follows a completely unique approach, as there is not a dedicated authorities-set up registration approach for this enterprise structure. Instead, a proprietorship earnings recognition thru tax registrations mandated with the beneficial useful resource of applicable laws and rules.One pivotal tax registration is the GST (Goods and Services Tax) Registration, which have to be secured underneath the proprietor’s name to formalize the corporation’s proprietorship reputation. This registration way that the owner is engaging in business corporation in the framework of a proprietorship.

Essential Licenses and Registrations for Proprietorships

To run a proprietorship in India, you need crucial licenses and registrations, together with:

  1. Get a Permanent Account Number (PAN) and an Aadhaar card on your business enterprise identity.
  2. Register underneath UDYAM, which recognizes your commercial enterprise as a Micro, Small, or Medium Enterprise (MSME) and gives authorities benefits.
  3. If your corporation exceeds unique thresholds, you should join up for Goods and Services Tax (GST) to gather and pay GST.
  4. Open a separate bank account in your enterprise to manage charge variety without difficulty.
  5. Depending in your organization area, sign up under your country’s Shops and Establishment Act to observe neighborhood labor regulations.

Advantages of Proprietorship

Easy registration: Sole proprietorship does now not have any formal incorporation or dissolution manner – as its the same as the Proprietor. However, to perform a agency, the owner may should reap positive registrations and licenses to be compliant with the legal recommendations and policies of India.

Lower compliance: As most proprietorship are best registered with government departments like Income Tax & GST, the compliance burden can be lower. On the other hand, entities like LLP or Company are registered with the Ministry of Corporate Affairs and ought to file severa statutory returns and be audited with the aid of a Chartered Accountant each yr.

Simplicity: As there are not any partners, shareholders, or directors, the proprietor can with out problem carry out this industrial employer with minimal documents and consent requirements. Hence, this form of agency structure is brilliant applicable for very small organizations.

Business choice: In a proprietorship, the economic company proprietor takes all commercial enterprise picks. There isn’t always any consent or approval required from every other man or woman. Hence, a proprietor can generally take quick choices regarding his employer affairs.

Complete manage: As sole proprietorship is owned only via the proprietor. He/she has entire control over the belongings, income, expenses and all commercial corporation operations.

Disadvantages of Sole Proprietorship

Funding: This type of business structure is predicated completely on one individuals financial savings, borrowings and credit records. As there are no other humans are concerned on this form of commercial enterprise structure, elevating price range from banks might be very difficult. Raising fairness price range will not be possible – as this kind of business entity does no longer permit for profit sharing or shareholding.

Personal legal responsibility: If a proprietor is unable to pay commercial enterprise loans or taxes, in a proprietorship – the personal property of the business owner can be connected or laden. Hence, on this kind of enterprise structure – the proprietor could be held in my opinion accountable until all the liabilities are extinguished.

Business continuity: In case of loss of life or disability of the enterprise proprietor, the sole proprietorship will be automatically dissolved. Hence, there’s could be no commercial enterprise continuity.

Growth: A proprietorship has numerous restrictions in phrases of fundraising, liability and enterprise continuity. Hence, handiest very small corporations which can be inside the unorganized quarter function as proprietorship.

Unincorporated enterprise: Sole proprietorship are unincorporated companies. Hence, there is no centralized database to be had to peer if a sole proprietorship is active or inactive. Thus, sole proprietorship entities are ordinarily categorised as unorganized enterprise.

At Kanoons, we offer a seamless online registration process for proprietorships. All you need is the PAN & Aadhaar card of the business owner to get started. Our services can provide you with GST Registration, or UDYAM Registration, and a Zero-Balance Business Current Account in less than 3 days.

Compliances for Proprietorship

The following are some of the compliances that are applicable for a sole proprietorship:

ITR: For a sole proprietorship, it is important to ensure compliance with various regulations. One such compliance is Income Tax Filing, where the business owner must submit their personal income tax return using form ITR-3 or ITR-4. Additionally, declaring business income is essential, and only forms ITR-3 and ITR-4 allow for this. Therefore, all proprietorships must file form ITR-3 or ITR-4 to adhere to income tax regulations.

GST and TDS: In terms of GST return filing for proprietorships with GST registration, it is imperative to submit returns on a monthly and quarterly basis according to the registration scheme. Furthermore, for proprietorships with employees or exceeding certain purchase thresholds, tax deduction at source is mandatory, necessitating TDS returns to be filed every quarter. It is worth noting that additional compliance requirements may apply to proprietorships depending on their industry and location.

Basic

₹3500

₹2499/-

  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing
Professional

₹7500

₹5499/-

  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing
Premium

₹15500

₹7499/-

  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing

*Account Opening: We just assist you in opening Current Account in one of our partner’s bank.

No Late Fee

It has been observed that numerous small businesses incur significant penalties every year for late filing of various statutory returns to the Government. These penalties are non-tax-deductible and can adversely affect the profitability of these enterprises. At Kanoons, our primary objective is to offer cost-effective services to our clients and assist them in avoiding any late fees. In line with our commitment, we have developed cutting-edge technology that enables businesses to stay ahead of compliance requirements and prevent any penalties. Explore our range of compliance services below to ensure smooth and hassle-free operations.

FAQ

What are the company's filings presently?

As mandated by the Companies Act 2013, company filing entails the submission of a variety of legal forms and documents to the Registrar of Companies (ROC). Common categories of company filings that are required to be submitted to the MCA include the following:

  • Annual Returns • Financial Statements • Changes in Directors or Shareholders • Director Identification Number • Company Filings for Approval • Charge Management • Documents of Incorporation • Annual Returns • Financial Statements

Legally, how do I establish a business?

In order to commence operations in India, one must adhere to a multitude of legal obligations. These encompass business registration, the acquisition of requisite licenses and permits, as well as compliance with labor and tax regulations. The following are some of the most important legal prerequisites for establishing a business in India:

  • Determine a Business Structure • Register the Business Name • Acquire a Director Identification Number (DIN) • Establish the Business as a Corporation • Obtain PAN and TAN Numbers • Acquire Additional Licenses and Permits • Ensure Compliance with Labor and Tax Laws • Obtain Insurance • Establish a Business Bank Account
  • Annual Returns • Financial Statements • Changes in Directors or Shareholders • Director Identification Number • Company Filings for Approval • Charge Management • Documents of Incorporation • Annual Returns • Financial Statements

What compliance requirements does a Private Limited Company have?

Compliance must be maintained by a corporation from the moment it is incorporated. Thirty days are allotted for the appointment of the auditor. Furthermore, it is imperative to complete the annual return filing and income tax filing annually.

Is an audit of a Private Limited Company required?

Statutory audits, as their name implies, are obligatory for all corporations. Annually, the records of accounts of all entities that are not registered under the Companies Act as Private or Public Limited Companies must be audited.

Is a report of audit required for all private limited companies?

Private limited companies are obligated to submit annual accounts and returns to the ROC, which contain information regarding their shareholders and directors.

Define ROC Compliance.

The ROC, which is the officer tasked with overseeing operations and is regulated by the MCA, is responsible for ensuring that Private Limited Companies and LLPs adhere to the statutory obligations of the ACT. The registrar of companies serves as the regulatory authority over the entities that are officially registered with them.

Which document should the Companies Director Report be accompanied by?

An extract of MGT-7 is appended to the company’s director report, to which MGT-9 is appended.

What are the various varieties of compliance?

Compliance primarily manifests in two forms: internal and external. Compliance of both varieties is governed by a set of regulations, practices, and rules.

Consult our article for additional information regarding the various forms of compliance.

What is the company's annual compliance rate?

Annual compliance refers to a distinct set of obligations that a corporation must satisfy after it has incorporated in order to initiate and sustain its business activities. Annually, in accordance with the Companies Act of 2013, numerous compliances must be met.

May I operate a modest company without registering it?

While small businesses are not required to register in India, doing so is advisable in order to secure specific advantages and guarantee adherence to legal requirements. Several unregistered business structures are frequently utilized by minor businesses:

Singular proprietorship

  • A firm in partnership

HUF is the Hindu Undivided Family.

Is the designation of the statutory auditor considered part of the annual compliance process?

A statutory auditor may be appointed by a corporation for a term of either five consecutive years or until the adjournment of the subsequent annual general meeting. Consequently, the inclusion of the statutory auditor’s appointment in the annual compliance report is not possible.

Singular proprietorship

  • A firm in partnership

HUF is the Hindu Undivided Family.

Is it imperative to carry out the AGM?

Annual general meetings (AGMs) facilitate communication between the company’s management and its shareholders. Monthly meetings are required by the Companies Act of 2013 in order to deliberate on annual results and select auditors.

How should the Company's annual returns be filed?

The entities Act of 1956 mandates that incorporated entities submit the subsequent documents to the ROC: The balance summary is required to be submitted on Form 23AC by all companies. The profit and loss statement is detailed on Form 23ACA, which is required of all businesses.

When is the annual return due following the AGM?

Private limited companies are obligated to submit their annual returns within sixty days subsequent to the annual general meeting (AGM).

Which Form must be submitted in order to appoint the statutory auditor?

Form ADT-1 is submitted in order to nominate or substitute the Statutory Auditor.

Is the annual submission of audited financial statements a requirement for private limited companies?

Audited financial statements have been an essential requirement for all companies since their inception. Filing is restricted to audited financial statements only.

What is the fundamental intent of compliance?

A company’s compliance with internal policies and procedures as well as governmental regulations is its primary objective. Compliance procedure implementation safeguards the organization against reputational harm, enhances its vision and value, and identifies and prevents rule violations.

Click here to discover more about the primary objective of Compliance.

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