A Proprietary Concern is a business structure where a single individual, known as the proprietor, owns and manages the entire business. This setup is simple, hassle-free, and widely favored by small business owners, shopkeepers, and freelancers. Since the proprietor and the business are treated as the same legal entity, all profits or losses are taxed as part of the proprietor’s personal income under standard income tax slabs. The owner can also reduce taxable income by claiming legitimate business expenses as deductions. However, the proprietor bears full personal responsibility for any business debts or liabilities, making careful financial management essential.
Advantages of Sole Proprietorship Company Registration
- Simplest Business Structure: It is one of the easiest and smoothest forms of business to establish in India.
- Minimal Investment: Ideal for entrepreneurs starting with a limited budget.
- Ease of Formation: The setup process is quick and straightforward.
- Low Tax Compliance: Fewer tax regulations compared to other business structures.
- Flexible Business Naming: No rigid restrictions on choosing a business name.
- Complete Privacy: The owner enjoys full privacy over business operations.
- Full Control: The proprietor has absolute authority to manage and run the business independently.
Essential Criteria for Registering a New Proprietorship in Bangalore
- To set up a proprietorship firm in Bangalore, the following requirements must be met:
- Residency: The proprietor must be an Indian resident.
- Business Name Selection: Choose a unique and suitable name for the business.
- Business Location: Decide on a physical or virtual location for operating the business.
- Capital Investment: No minimum capital requirement; you can start with a small investment based on your business needs.
Simplified Requirements for Proprietorship Registration
1. GST Registration Certificate
⇒ Mandatory if your annual turnover exceeds ₹20 lakh or if you engage in inter-state business.
2. MSME (Udyam) Registration
⇒ Required to avail benefits under the MSME Act by registering on the Udyam portal.
3. Shop & Establishment Registration
⇒ Compulsory for all shops and commercial units to register with the labor department.
4. Proprietorship Bank Account
⇒ Essential for business transactions. You can open a current account with any scheduled bank in India.
5. Trade License
⇒ If you own a shop or run a business in Bangalore, you must obtain a Trade License from BBMP.
Proprietorship Firm Registration Process
Follow these simple steps to register your proprietorship firm:
1. Submit Your Details and Documents
⇒ Provide basic details and upload the necessary documents.
2. Make Online Payment
⇒ Complete the registration fee payment securely online.
3. Dedicated Manager Assigned
⇒ A dedicated manager will be assigned to guide you and handle your registration process.
4. Document Preparation and Filing
⇒ We will prepare all required documents and submit them to the relevant authorities.
5. Receive Your Registration Certificate
⇒ Once your proprietorship is officially registered, we will send you the incorporation certificate.
Documents Required for Proprietorship Registration in Bangalore
To register a proprietorship in Bangalore, you will need the following documents:
- Proof of Identity (of the Proprietor) PAN Card (mandatory) Aadhaar Card / Passport / Voter ID / Driving License
- Proof of Address (of the Proprietor) Utility Bill (Electricity Bill, Water Bill, etc.) Bank Statement (latest) Rental Agreement (if applicable)
- Business Address Proof Utility Bill or Property Tax Receipt (if owned) Rental Agreement and NOC (No Objection Certificate) from the landlord (if rented)
- Business Registration Documents GST Registration Certificate (if applicable) Shop and Establishment License (if required)
- Bank Account Proof Cancelled Cheque or Bank Statement of the business account
- Additional Licenses/Approvals (if specific to your business) Any trade license, FSSAI (for food businesses), or professional tax registration, based on the business activity.
At Habco, we handle the entire proprietorship registration process from start to finish, so you don’t have to worry. From document preparation to filing and follow-ups, our expert team ensures a seamless experience. Your information is secure with us, and you can trust us to manage your details with the utmost confidentiality and professionalism. Let us take care of the paperwork while you focus on growing your business!