A proprietorship is a form of business where the owner owns, runs, and controls the whole enterprise basically means one person company.
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A proprietorship is a form of business where the owner owns, runs, and controls the whole enterprise basically means one person company. There are extremely few compliance requirements because the proprietorship and proprietor are the same, making it simple to start.
A proprietorship cannot have additional partners or shareholders since the proprietor and the business are one and the same. Additionally, the proprietor's limited liability protection from the business operations carried out in the sole proprietorship is non-existent. Thus, this form of corporate structure best serves small firms with at most 5 workers.
How to check the status of the proprietorship?
We are not required to register as a sole proprietorship in India. A platform to examine the status of a sole proprietorship does not exist as a result. However, once a proprietor has submitted an application for GST registration, the proprietorship's GST registration and filing status can get verified on the GST Portal to confirm its existence.
Licenses & Registrations for Sole Proprietorships
The proprietor must get PAN and Aadhar to operate a One Person Company in India. The business owner must register for UDYAM, and GST, and create a bank current account. The business owners also require to register under the Shops & Establishment Act in several states.
Depending on the business, the state, and the local rules, extra licenses and permissions can be necessary for addition to the aforementioned fundamental criteria.
Through IndiaFilings, you may register a proprietorship online. Only business owners with PAN and Aadhaar cards can form a proprietorship. In fewer than 15 days, we can assist you in obtaining the following registrations:
Following your registration for a proprietorship on IndiaFilings. follow the instructions below and log into LEDGERS to upload the relevant paperwork.
Step 1: Access LEDGERS by logging in using the payment email address.
Step 2: Select Proprietorship Engagement under the Services tab.
Step 3: Upload a copy of your PAN and Aadhar card.
Step 4: A registration expert from IndiaFilings will submit the application to the MSME Department, the Bank for Current Account, and the GST Department.
Step 5: For GST invoicing, GST filing, and other services, access to LEDGERS Accounting Software is made available.
PAN Card for a Proprietorship
One person business owner is not a distinct legal entity. The process to get a proprietorship PAN card does not exist. The proprietorship uses the business owner's PAN card.
How to Register for a Proprietorship with UDYAM
Online Udyam Registration is required to take advantage of the incentives offered to small and medium-sized enterprises. By submitting an Aadhaar card, a PAN card, and a GST certificate to the government after obtaining GST registration, the IndiaFilings team will assist in obtaining UDYAM registration.
Bank Account for a Business
A proprietorship's bank current account should be in the name of the business owner using that person's PAN. The proprietor of the company must provide evidence that they are in operation. To open a current account any two of the following documents can be submitted:
Obligations of a Proprietorship
Compliances that apply to a proprietorship are as follows:
Filing Income Taxes:
A proprietorship's business owner must submit a personal income tax return using the form ITR-3 or ITR-4.
Income tax forms ITR-3 and ITR-4 income tax forms only allowed for the declaration of business income. As a result, to follow income tax requirements, all proprietorships must submit forms ITR-3 or ITR-4.
GST Return Submission:
When a proprietorship registers for GST, the monthly and quarterly GST returns are due under the business's registration plan.
Tax must be withheld at source and TDS forms must be filed on a quarterly basis if the proprietorship employs workers or spends more than a specific amount on goods and services.
In addition to the aforementioned, the proprietorship may also need to comply with other regulations according on its sector and region.
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