Prop. Documents:


Other Documents:

Electricity Bill
Rental Agreement

Includes: Registration
Duration: 7 Working Days

LLP 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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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.




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



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



  • 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.


What are Annual Filings of an LLP?

Annual Filings of LLPs pertain to the obligatory reports and submissions that Limited Liability Partnerships are obligated to submit to regulatory authorities on an annual basis in order to uphold compliance.

What is the repercussion for LLPs that fail to comply?

LLPs are subject to penalties of up to 5 lakh INR for noncompliance; therefore, annual filing obligations must be met.

When must limited liability partnerships (LLPs) submit Form 11 (Annual Return)?

Annually, by May 30th, Form 11 must be submitted within sixty days of the end of the fiscal year.

When must limited liability partnerships (LLPs) submit Form 11 (Annual Return)?

Annually, by May 30th, Form 11 must be submitted within sixty days of the end of the fiscal year.

Who may electronically endorse the Form 8 for LLPs?

Two designated partners of the LLP may digitally sign Form 8. Form 8 requires the certification of a company secretary, chartered accountant, or cost accountant.

Is a tax audit required of every LLP?

LLPs that surmount Rs. 40 lakhs in annual turnover or Rs. 25 lakhs in contributions are obligated to undergo a tax audit, contingent upon specific conditions.

Are LLPs that conduct international transactions subject to any further filing obligations?

By November 30th, LLPs involved in international transactions are required to submit Form 3CEB, which must be certified by a chartered accountant.

What are the consequences of LLPs failing to comply with their annual filing obligations?

LLPs that fail to comply may be subject to significant penalties, damage to their reputation, and possible legal complications.

When is the deadline for LLPs to file their ITRs?

LLPs are required to submit their ITRs by July 31st, or September 30th in the event that a tax audit is obligatory.

Why should LLP annual filings be handled by Kanoons?

Kanoons facilitates the annual filings of limited liability partnerships (LLPs) by providing certification services, expert guidance, and timely filings, thereby minimizing the risk of noncompliance.

What are the benefits of LLPs submitting their annual returns on time?

Maintaining good standing, avoiding penalties, and ensuring the seamless operation of business operations are all facilitated by timely filing for LLPs.

Why are annual filings for an LLP significant?

Maintaining the legal standing of a limited liability partnership (LLP) requires these filings, which also guarantee openness, financial responsibility, and credibility.

Which compliance obligations are most significant for LLPs?

Maintaining accurate financial records, submitting annual returns (Form 11), filing financial statements (Form 8), and filing an income tax return (ITR-5) are essential compliance obligations.

What occurs if an LLP fails to file Form 11 by the specified deadline?

Completing Form 11 after the deadline may incur penalties of INR 100 per day of postponement.

LLPs are required to file Form 8 (Statement of Accounts) at what time.

The submission deadline for Form 8 is thirty days subsequent to the conclusion of the six-month period following the end of the financial year.

What is the penalty for LLPs that fail to file Form 8 on time?

Completing Form 8 after the deadline may incur penalties of INR 100 per day of postponement.

When do the LLP tax audit and tax filing requirements expire?

The deadline for applicable LLPs to undergo a tax audit is September 30th, whereas LLPs that do not have a tax audit have until July 31st.

Which form of Income Tax Return (ITR) do LLPs utilize?

Form ITR-5 must be utilized when filing an income tax return on behalf of an LLP.

What is the procedure for initiating LLP annual filings via Kanoons?

To commence using Kanoons, please consult our website and adhere to the straightforward instructions provided for LLP annual filings.

What are the advantages of annual filings by an LLP?

Advantages consist of enhanced credibility, a proven financial history, the avoidance of penalties, and streamlined procedures for conversion or closure.

Is Kanoons capable of providing LLPs with additional compliance services?

Yes, Kanoons offers a comprehensive selection of compliance services to meet the requirements of your LLP, including GST registration, accountancy, and more.

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