proprietorship registrations in Hyderabad

PROPRIETORSHIP REGISTRATION

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PROPRIETORSHIP

A proprietorship also called ‘sole proprietorship’ is a form of business where a single person is in-charge of the whole business conduct. Being the whole and sole, this form of business is easy way to make you way in the field with less number of compliances. Proprietorship does not entitle for separate legal entity.

The proprietor is solely liable for the debts of the business. This form of business does not have any means for registrations like a LLP or a company. Service tax registration or sales tax registration of a proprietorship can be acquired from the departments based on the nature of the business.


Advantages of having a for Sole Proprietorship registered

- Simple setup & easy registration
- Complete control over the business
- Low Cost formation & management


FAQs

Who is a proprietor?
Proprietor is a person who is the owner of the business and does not have any other partners but has some employees in execution of the operations. Sole proprietor has the individuality in doing the business and can use his/her own ways of doing business.


How many people are required for starting a sole proprietorship?
All is one and one is all. Only one person is required to start a sole proprietorship form of business. He can deploy employees under him.


Which form of business can sole proprietorship be converted into
Sole proprietorship form of business is always scalable to a LLP form of business or a Private Limited company. There is a conversion procedure to scale up to the other forms when there is a requirement of funding or expansion of business.


Can an NRI start a Sole proprietorship in India?
An NRI has to obtain a PAN card as an NRI to start the business operation in his name. Hence, there is no bar on NRIs to start a sole proprietorship form of business but only on a non-repatriable basis.


What is a Sole Proprietorship?
An entity which is owned by a sole proprietor is called as a Sole proprietorship form of business. He can obtain the Sole proprietor registration under the Shops and Establishment Act. This document can be used by the sole proprietor for obtaining sales tax and service tax registrations.


What is the minimum share capital for starting a Sole Proprietorship Firm?
There is no minimum share capital required for forming a Sole Proprietorship. A sole proprietor should estimate the short term and long term requirements and bring the amount required to carry out the business. There is no act prescribing a minimum share capital needed to start a sole proprietorship form of business.


Who can start a Sole Proprietorship?
Since the number of people required to start this form of business is minimal, any new start up can choose to be a sole proprietorship. This is a good option for those entrepreneurs who do not require funding from the day 1 and does not want to carry out much branding activity.


What are the yearly compliances with respect to Income Tax, Service Tax and VAT?
Income Tax:Sole proprietor has to pay an advance tax on a quarterly basis if the tax liability payable during the year is more than INR 10,000 and has to file income tax return on a yearly basis.
Service Tax: Sole proprietor has to comply with the service Tax once the service value is more than INR 9 lakhs.
Sales Tax: A sole proprietorship form of business can apply for TOT registration if the sales turnover crosses INR 5 lakhs and can apply for VAT registration if the sales turnover crosses INR 50 Lakhs.

"The best way to get started is to quit talking and start doing" - RON Conway, Noted Startup Investor, SV Angel

proprietorship registrations in Hyderabad
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    Hyderabad – 500033.